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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jan. 31, 2019	Feb. 28, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Registrant Name	Guidewire Software, Inc.
Entity Central Index Key	0001528396
Entity Filer Category	Large Accelerated Filer
Current Fiscal Year End Date	--07-31
Entity Common Stock, Shares Outstanding		81,414,683

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 360,169	$ 437,140
Short-term investments	706,203	630,008
Accounts receivable	119,699	124,849
Unbilled accounts receivable, net	47,493	0
Prepaid expenses and other current assets	30,234	30,510
Total current assets	1,263,798	1,222,507
Long-term investments	171,873	190,952
Unbilled accounts receivable, net	11,459	0
Property and equipment, net	30,017	18,595
Intangible assets, net	81,037	95,654
Goodwill	340,877	340,877
Deferred tax assets, net	83,922	87,482
Other assets	35,330	22,525
TOTAL ASSETS	2,018,313	1,978,592
CURRENT LIABILITIES:
Accounts payable	20,967	30,635
Accrued employee compensation	44,448	60,135
Deferred revenue, net	90,979	114,138
Other current liabilities	13,276	20,280
Total current liabilities	169,670	225,188
Convertible senior notes, net	311,141	305,128
Deferred revenue, net	21,381	23,758
Other liabilities	1,739	774
Total liabilities	503,931	554,848
STOCKHOLDERS’ EQUITY:
Common stock	8	8
Additional paid-in capital	1,346,620	1,297,979
Accumulated other comprehensive loss	(7,554)	(7,748)
Retained earnings	175,308	133,505
Total stockholders’ equity	1,514,382	1,423,744
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 2,018,313	$ 1,978,592

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Statement of Financial Position [Abstract]
Allowance for accounts receivable	$ 1,175	$ 1,062

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Revenues :
Total revenue	$ 169,266	$ 163,788	$ 348,949	$ 271,959
Cost of revenues:
Total cost of revenue	79,630	67,769	162,089	130,663
Gross profit :
License	72,385	75,181	153,324	98,559
Maintenance	17,310	15,517	34,445	30,980
Services	(59)	5,321	(909)	11,757
Total gross profit	89,636	96,019	186,860	141,296
Operating expenses:
Research and development	46,471	43,657	91,967	79,368
Sales and marketing	31,173	31,961	63,492	55,571
General and administrative	17,541	21,066	35,886	39,737
Total operating expenses	95,185	96,684	191,345	174,676
Income (loss) from operations	(5,549)	(665)	(4,485)	(33,380)
Interest income, net	7,553	1,573	14,404	3,485
Interest expense	(4,287)	(7)	(8,531)	(11)
Other income (expense), net	1,148	1,658	(341)	1,396
Income (loss) before income taxes	(1,135)	2,559	1,047	(28,510)
Provision for (benefit from) income taxes	(1,891)	48,114	(5,198)	25,959
Net income (loss)	$ 756	$ (45,555)	$ 6,245	$ (54,469)
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.01	$ (0.59)	$ 0.08	$ (0.72)
Diluted (in dollars per share)	$ 0.01	$ (0.59)	$ 0.08	$ (0.72)
Shares used in computing earnings (loss) per share:
Basic (in shares)	81,217,511	76,859,040	81,058,562	76,023,237
Diluted (in shares)	82,191,668	76,859,040	82,289,773	76,023,237
License and subscription
Revenues :
Total revenue	$ 87,124	$ 84,221	$ 181,393	$ 114,314
Cost of revenues:
Total cost of revenue	14,739	9,040	28,069	15,755
Maintenance
Revenues :
Total revenue	21,264	19,110	42,267	38,040
Cost of revenues:
Total cost of revenue	3,954	3,593	7,822	7,060
Services
Revenues :
Total revenue	60,878	60,457	125,289	119,605
Cost of revenues:
Total cost of revenue	$ 60,937	$ 55,136	$ 126,198	$ 107,848

Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ 756	$ (45,555)	$ 6,245	$ (54,469)
Foreign currency translation adjustments	235	2,124	(577)	1,428
Unrealized gains (losses) on available-for-sale securities, net of tax benefit of $134 and $4 for the three months ended October 31, 2016 and 2015, respectively	1,485	(457)	1,285	(592)
Tax benefit (expense) on unrealized gains (losses) on available-for-sale securities	(288)	122	(241)	167
Reclassification adjustment for realized losses (gains) included in net loss	(273)	0	(273)	15
Other comprehensive loss	1,159	1,789	194	1,018
Comprehensive loss	$ 1,915	$ (43,766)	$ 6,439	$ (53,451)

Condensed Consolidated Statement of Changes in Stockholders' Equity Condensed Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member] Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]
Beginning balance (in shares) at Jul. 31, 2017		75,007,625
Net loss	$ (54,469)				$ (54,469)
Beginning balance at Jul. 31, 2017	893,281	$ 8	$ 830,014	$ (5,796)	69,055
Issuance of common stock upon exercise of stock options (in shares)		59,078
Issuance of common stock upon exercise of stock options	729		729
Issuance of common stock upon vesting of Restricted Stock Units (RSU) (in shares)		643,219
Issuance of common stock upon vesting of Restricted Stock Units (“RSU”)	0
Stock-based compensation	44,170		44,170
Foreign currency translation adjustment	1,428			1,428
Unrealized loss on available-for-sale securities, net of tax	(410)			(410)
Issuance of common stock for Cyence acquisition (in shares)		1,569,238
Issuance of common stock for Cyence acquisition	117,935		117,935
Ending balance (in shares) at Jan. 31, 2018		77,279,160
Ending balance at Jan. 31, 2018	1,087,489	$ 8	993,559	(4,778)	98,700
Beginning balance (in shares) at Oct. 31, 2017		75,362,109
Net loss	(45,555)				(45,555)
Beginning balance at Oct. 31, 2017	988,401	$ 8	850,705	(6,567)	144,255
Issuance of common stock upon exercise of stock options (in shares)		36,694
Issuance of common stock upon exercise of stock options	362		362
Issuance of common stock upon vesting of Restricted Stock Units (RSU) (in shares)		311,119
Issuance of common stock upon vesting of Restricted Stock Units (“RSU”)	0
Stock-based compensation	25,035		25,035
Foreign currency translation adjustment	2,124			2,124
Unrealized loss on available-for-sale securities, net of tax	(335)			(335)
Issuance of common stock for Cyence acquisition (in shares)		1,569,238
Issuance of common stock for Cyence acquisition	117,457		117,457
Ending balance (in shares) at Jan. 31, 2018		77,279,160
Ending balance at Jan. 31, 2018	1,087,489	$ 8	993,559	(4,778)	98,700
Beginning balance (in shares) at Jul. 31, 2018		80,611,698
Net loss	6,245				6,245
Beginning balance at Jul. 31, 2018	1,423,744	$ 8	1,297,979	(7,748)	133,505
Issuance of common stock upon exercise of stock options (in shares)		142,818
Issuance of common stock upon exercise of stock options	1,102		1,102
Issuance of common stock upon vesting of Restricted Stock Units (RSU) (in shares)		684,957
Issuance of common stock upon vesting of Restricted Stock Units (“RSU”)	0		0
Stock-based compensation	47,539		47,539
Foreign currency translation adjustment	(577)			(577)
Unrealized loss on available-for-sale securities, net of tax	771			771
Cancellation of Restricted Stock (in shares)		(48,968)
Cancellation of Restricted Stock Awards (“RSA”)	0
Ending balance (in shares) at Jan. 31, 2019		81,390,505
Ending balance at Jan. 31, 2019	1,514,382	$ 8	1,346,620	(7,554)	175,308
Beginning balance (in shares) at Oct. 31, 2018		81,009,507
Net loss	756				756
Beginning balance at Oct. 31, 2018	$ 1,487,725	$ 8	1,321,878	(8,713)	174,552
Issuance of common stock upon exercise of stock options (in shares)	142,818	68,120
Issuance of common stock upon exercise of stock options	$ 413		413
Issuance of common stock upon vesting of Restricted Stock Units (RSU) (in shares)		312,878
Issuance of common stock upon vesting of Restricted Stock Units (“RSU”)	0		0
Stock-based compensation	24,329		24,329
Foreign currency translation adjustment	235			235
Unrealized loss on available-for-sale securities, net of tax	924			924
Ending balance (in shares) at Jan. 31, 2019		81,390,505
Ending balance at Jan. 31, 2019	$ 1,514,382	$ 8	$ 1,346,620	$ (7,554)	$ 175,308

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ 6,245	$ (54,469)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	19,442	16,315
Amortization of debt discount and issuance costs	6,013	0
Stock-based compensation	47,686	44,655
Charges to bad debt and revenue reserves	352	0
Deferred tax assets	(7,340)	24,287
Amortization of premium on available-for-sale securities	(3,816)	361
Other non-cash items affecting net income (loss)	515
Changes in operating assets and liabilities:
Accounts receivable	4,414	(16,345)
Unbilled accounts receivable	(30,190)	0
Prepaid expenses and other assets	(66)	(3,139)
Accounts payable	(14,475)	4,834
Accrued employee compensation	(15,262)	(17,547)
Deferred revenues	(27,650)	16,690
Other liabilities	1,111	804
Net cash used in operating activities	(13,021)	16,446
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities	(462,902)	(110,820)
Sales of available-for-sale securities	410,583	170,316
Purchase of property and equipment	(11,006)	(4,620)
Capitalized software development costs	(1,103)	(769)
Net cash used in investing activities	(64,428)	(76,269)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock upon exercise of stock options	1,103	727
Net cash provided by financing activities	1,103	727
Effect of foreign exchange rate changes on cash and cash equivalents	(625)	1,207
NET CHANGE IN CASH AND CASH EQUIVALENTS	(76,971)	(57,889)
CASH AND CASH EQUIVALENTS—Beginning of period	437,140	263,176
CASH AND CASH EQUIVALENTS—End of period	360,169	205,287
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes	2,540	1,677
Accruals for purchase of property and equipment	3,609	1,497
Accruals for capitalized software costs	$ 75	$ 40

The Company and Summary of Significant Accounting Policies and Estimates

6 Months Ended

Jan. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Summary of Significant Accounting Policies and Estimates


	The Company and Summary of Significant Accounting Policies and Estimates

Company

Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. Guidewire Software, Inc., together with its subsidiaries (the “Company”), provides a technology platform which consists of three key elements: core transaction processing, data management and analytics, and digital engagement. The Company’s technology platform supports core insurance operations, including underwriting and policy administration, claim management and billing; insights into data that can improve business decision making; and digital sales, service and claims experiences for policyholders, agents, and other key stakeholders. The Company’s customers are primarily property and casualty insurance carriers.

Basis of Presentation and Consolidation

The accompanying condensed consolidated financial statements and accompanying notes include the Company and its wholly-owned subsidiaries and reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted under the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).

These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes, together with management’s discussion and analysis of financial condition and results of operations, presented in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2018. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2018, except for changes to revenue recognition, customer acquisition costs, and costs to fulfill a contract resulting from the adoption of Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASC 606”).

Use of Estimates

The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. Significant items subject to such estimates include, but are not limited to, revenue recognition, the useful lives of property and equipment and intangible assets, allowance for doubtful accounts, valuation allowance for deferred tax assets, stock-based compensation, annual bonus attainment, income tax uncertainties, fair value of convertible senior notes, valuation of goodwill and intangible assets, software development costs to be capitalized, and contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from these estimates.

Foreign Currency

The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable balance sheet date. Revenue and expenses are translated at the average exchange rate prevailing during the period in which the transactions occur. The effects of foreign currency translations are recorded in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity in the accompanying condensed consolidated balance sheets. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recorded as other income (expense) in the condensed consolidated statements of operations.

Cash and Cash Equivalents

Cash and cash equivalents are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Cash equivalents primarily consist of commercial paper and money market funds.

Investments

Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. All current investments have been classified as available-for-sale.

The Company classifies investments as short-term when they have remaining contractual maturities of one year or less from the balance sheet date, and as long-term when the investments have remaining contractual maturities of more than one year from the balance sheet date. All investments are recorded at fair value with unrealized holding gains and losses included in accumulated other comprehensive income (loss).

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Maintenance and repairs that do not extend the life or improve an asset are expensed in the period incurred.

The estimated useful lives of property and equipment are as follows:



Computer hardware		3 years
Purchased software		3 years
Furniture and fixtures		5 years
Leasehold improvements		Shorter of 10 years or remaining lease term

Software Development Costs

Certain on-premise software development costs incurred subsequent to the establishment of technological feasibility are subject to capitalization and amortized over the estimated lives of the related products. Technological feasibility is established upon completion of a working model. Costs incurred subsequent to the establishment of technological feasibility have not been material and, therefore, all software development costs related to on-premise software have been charged to research and development expense in the accompanying consolidated statements of operations as incurred.

For qualifying costs incurred for computer software developed for internal use, the Company begins to capitalize its costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. If any of these criteria cease being met before the software reaches its intended use, any capitalized costs related to the project will be impaired. When the software reaches its intended use, capitalized costs are amortized to cost of revenue over the estimated useful life of the related assets, generally estimated to be three to five years. Costs incurred prior to meeting these capitalization criteria and costs incurred for training and maintenance are expensed as incurred and recorded in research and development expense on the Company’s condensed consolidated statements of operations. Capitalized software development costs are recorded in property and equipment on the Company’s condensed consolidated balance sheets.

Impairment of Long-Lived Assets, Intangible Assets, and Goodwill

The Company evaluates its long-lived assets, consisting of property and equipment and intangible assets, for indicators of possible impairment when events or changes in circumstances indicate that the carrying amount of certain assets may not be recoverable. Impairment exists if the carrying amount of such assets exceed the estimates of future net undiscounted cash flows expected to be generated by such assets. Should impairment exist, the impairment loss would be measured based on the excess carrying amount of the assets over the estimated fair value of the assets.

The Company tests goodwill for impairment annually, during the fourth quarter of each fiscal year, and in the interim whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company evaluates qualitative factors to determine whether it is more likely than not that the fair value of the Company’s single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. In performing the qualitative assessment, the Company considers events and circumstances, including, but not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit’s net assets, and changes in the price of the Company’s common stock. If, after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the two-step goodwill impairment test is not performed. There have been no goodwill impairments during the periods presented.

Convertible Senior Notes

In March 2018, the Company issued $400.0 million aggregate principal amount of 1.25% Convertible Senior Notes due 2025 (the “Convertible Senior Notes”). The Company accounts for the liability and equity components of the issued Convertible Senior Notes separately. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the Convertible Senior Notes as a whole. This difference represents a debt discount that is amortized to interest expense using the effective interest method over the term of the Convertible Senior Notes. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The liability and equity components will not be remeasured as long as the conversion option continues to meet the requirements for equity classification. The equity component is net of issuance costs and recorded in additional paid-in capital.

Business Combinations

The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. Goodwill is calculated as the difference between the acquisition date fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and subject to refinement and, as a result, actual results may differ from estimates. During the measurement period, which may be up to one year from the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, the Company may record adjustments to the fair value of these assets and liabilities, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, subsequent adjustments, if any, are recorded to the Company’s condensed consolidated statements of operations.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, investments, and accounts receivable. The Company maintains its cash, cash equivalents, and investments with high quality financial institutions. The Company is exposed to credit risk for cash held in financial institutions in the event of a default to the extent that such amounts recorded on the condensed consolidated balance sheets are in excess of amounts that are insured by the Federal Deposit Insurance Corporation.

No customer individually accounted for 10% or more of the Company’s revenue in any of the periods presented or for 10% or more of the Company’s accounts receivable as of January 31, 2019 and July 31, 2018.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at invoiced amounts and do not bear interest. While the Company does not require collateral, the Company performs ongoing credit evaluations of its customers. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable. The expectation of collectability is based on historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with delinquent accounts.

Revenue Recognition

The Company’s revenue is derived from contracts with customers. The majority of the Company’s revenue is derived from licensing arrangements that can span multiple years, and implementation and other professional services arrangements. The Company accounts for revenue in accordance with ASC 606, which the Company adopted on August 1, 2018 using the modified retrospective method. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2018 for a description of the Company’s revenue recognition policy prior to August 1, 2018. The core principle of ASC 606 is to recognize revenue upon the transfer of services or products to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. The Company applies the following framework to recognize revenue:

Identification of the contract, or contracts, with the customer

The Company considers the terms and conditions of written contracts and its customary business practices in identifying its contracts under ASC 606. The Company determines it has a contract with a customer when the contract is approved, the Company can identify each party’s rights regarding the services and products to be transferred, the Company can identify the payment terms for the services and products, the Company has determined that the customer has the ability and intent to pay, and the contract has commercial substance. In general, contract terms will be reflected in a written document that is signed by both parties. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract. The Company also evaluates the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer.

Identification of the performance obligation in the contract

Performance obligations promised in a contract are identified based on the services or products that will be transferred to the customer that are both:


i.	capable of being distinct, whereby the customer can benefit from the service or product either on its own or together with other resources that are readily available from the Company or third parties, and


ii.	distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract.

To the extent a contract includes multiple promised services or products, the Company applies judgment to determine whether promised services or products are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services or products are accounted for as a combined performance obligation.

The Company generates revenue from the following sources, which represent the performance obligations of the Company:


i.	On-premise software licenses related to term or perpetual agreements;


ii.	Maintenance activities that consist of email and phone support, bug fixes, and unspecified software updates and upgrades released when, and if, available during the maintenance term;


iii.	Subscription services related to the Company’s Software-as-a-Service (“SaaS”) offerings; and


iv.	Services related to the implementation and configuration of the Company’s software, reimbursable travel, and training.

Term licenses generally have a two-year initial term with a customer option to renew on an annual basis after the initial term. Maintenance for term licenses follows the same contract periods. Subscriptions are typically sold with a three- to five-year initial term with a customer option to renew on an annual basis after the initial term. Professional services typically are time and materials contracts that last for an average period of approximately one year.

Determination of the transaction price

The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services and products to the customer. Variable consideration is estimated and included in the transaction price if, in the Company’s judgment, it is probable that there will not be a significant future reversal of cumulative revenue under the contract.

On-premise software licenses and subscription services may be subject to either fixed or variable installments. Variable installments are generally subject to changes in a customer’s Direct Written Premium (“DWP”) or a customer’s Gross Written Premium (“GWP”). When consideration is subject to variable installments, the Company estimates variable consideration using the expected value method based on historical DWP or GWP usage to the extent that a significant revenue reversal is not probable to occur. When consideration is subject to a customer termination right, the Company estimates the total transaction price using the most likely method, and defers consideration associated with the customer’s termination right until it expires.

The Company evaluates whether a significant financing component exists when the timing of revenue recognition occurs in advance of invoicing. This timing difference occurs when control of the software license is transferred at a point in time, usually at the contract onset, but the customer payments occur over time. A significant financing component generally does not exist under the Company’s standard contracting and billing practices. For example, the Company’s typical time-based licenses have a two-year initial term with the final payment due at the end of the first year.

Allocation of the transaction price to the performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on its standalone selling price (“SSP”) in relation to the total fair value of all performance obligations in the arrangement. The majority of the Company’s contracts contain multiple performance obligations, such as when licenses are sold with maintenance, implementation services or training services. Some of the Company’s performance obligations, such as maintenance, implementation services, and training services, have observable inputs that are used to determine the SSP of those distinct performance obligations. Where SSP is not directly observable, the Company determines the SSP using information that may include market conditions and other observable inputs. In the circumstances when available information to determine SSP is highly variable or uncertain, such as for our term licenses, the Company will use the residual method.

Recognition of revenue when, or as, the Company satisfies a performance obligation

The Company recognizes revenue when control of the services or products are transferred to a customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. The Company is principally responsible for the satisfaction of its distinct performance obligations, which are satisfied either at a point in time or over a period of time.

Performance obligations satisfied at a point in time

On-premise software licenses

On-premise term and perpetual software licenses comprise the majority of distinct performance obligations that are satisfied at a point in time. Revenue is recognized at the point in which the on-premise software licenses are made available to a customer. Consideration for on-premise software licenses is typically billed in advance on an annual basis over the license term.

Performance obligations satisfied over a period of time

Subscriptions, maintenance activities, and professional service arrangements comprise the majority of distinct performance obligations that are satisfied over a period of time.

Subscription arrangements

Revenue from subscription arrangements is recognized ratably over the subscription period using a time-based measure of progress as customers receive the benefits from their subscriptions over the contractually agreed-upon term. The Company’s subscription periods are generally three to five years. Consideration from subscription arrangements is typically billed in advance on an annual basis over the contract period.

Maintenance activities

Revenue from maintenance activities associated with on-premise licenses is a stand-ready obligation, which is recognized over the contractually agreed-upon term using a time-based measure of progress as customers receive benefits from the availability of support technicians over the support period. Consideration for maintenance activities is typically billed in advance on an annual basis. The Company’s maintenance activities are consistently priced as a percentage of the associated on-premise software license.

Services

Revenue from professional service arrangements is recognized over the respective service period as the underlying services are performed.

In substantially all of the Company’s professional service contracts, services are separately identifiable performance obligations for which related revenue and costs are recognized according to when each respective service obligation is delivered. Substantially all professional services engagements are billed and recognized on a time and materials basis. In select situations, the Company will contract professional services on a fixed fee basis, where the Company generally recognizes services revenue over time, using an input method. The measure of progress of the professional services being provided under these fixed fee arrangements is based on hours incurred compared to estimates of the total hours to complete the performance obligation.

When professional services are sold with an on-premise license or subscription arrangement, the Company evaluates whether the performance obligations are distinct or separately identifiable, or whether they constitute a single performance obligation. In the limited cases where professional services are not considered to be distinct from the on-premise license or subscription services, the Company will recognize revenue based on the nature and term of the combined performance obligation when control of the combined performance obligation is transferred to the customer.

Contract Costs

Contract costs consists of two components, customer acquisition costs and costs to fulfill a contract.

Customer acquisition costs are capitalized only if the costs are incrementally incurred to obtain a customer contract, and mainly consist of sales commissions paid to sales personnel and their related taxes. Capitalized customer acquisition costs related to software licenses, subscriptions, and support services are amortized over the anticipated period of time that such goods and services are expected to be provided to a customer, which the Company estimates to be approximately five years. The amortization of customer acquisition costs is classified as a sales and marketing expense in the condensed consolidated statement of operations.

Costs to fulfill a contract, or fulfillment costs, mainly consist of royalties payable to third-party software providers that support both the Company’s software offerings and support services. Fulfillment costs are only capitalized if they relate directly to a contract with a customer, the costs generate or enhance resources that will be used to satisfy performance obligations in the future, and the costs are expected to be recoverable. Fulfillment costs would be generally amortized over the same period of time as the customer acquisition costs. The amortization of fulfillment costs is classified as a cost of revenue.

Advertising Costs

Advertising costs are expensed as incurred and amounts incurred were not material during the three and six months ended January 31, 2019 and 2018.

Stock-Based Compensation

The Company accounts for stock-based compensation using the fair value method, which requires the Company to measure stock-based compensation based on the grant-date fair value of the awards and recognize the compensation expense over the requisite service period. The Company recognizes compensation expense net of actual forfeitures. To date, the Company has granted or assumed stock options, restricted stock awards (“RSAs”), time-based restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), and restricted stock units that may be earned subject to the Company’s total shareholder return ranking relative to the software companies in the S&P Software and Services Select Industry Index (“S&P Index”) for a specified performance period or specified performance periods, service periods, and in select cases, subject to certain performance conditions (“TSR PSUs”). RSAs, RSUs, PSUs, and TSR PSUs are collectively referred to as “Stock Awards.”

The fair value of the Company’s RSAs, RSUs, and PSUs is equal to the market value of the Company’s common stock on the date of grant. These awards are subject to time-based vesting, which generally occurs over a period of four years. The Company recognizes compensation expense for awards that contain only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the compensation cost for awards that contain either performance conditions, market conditions, or both using the graded vesting method.

The fair value of the Company’s stock options and TSR PSUs are estimated at the grant date using the Black-Scholes model and Monte Carlo simulation method, respectively. The assumptions utilized under these methods require judgments and estimates. Changes in these inputs and assumptions could affect the measurement of the estimated fair value of the related compensation expense of these stock options and stock awards. Compensation expense associated with TSR PSUs will be recognized over the vesting period regardless of whether the market condition is ultimately satisfied; however, the expense will be reversed if a grantee terminates prior to satisfying the requisite service period. For TSR PSUs containing an additional performance condition, a portion of the expense may fluctuate depending on estimates of the achievement of the performance conditions. All TSR PSUs will vest at the end of a three-year period.

Income Taxes

Income taxes are accounted for under the asset and liability method. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement carrying amounts and tax basis of existing assets and liabilities by using enacted tax rates in effect for the year in which the difference is expected to reverse. All deferred tax assets and liabilities are classified as non-current on the Company’s condensed consolidated balance sheets. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded when it is more likely than not that some portion or all of such deferred tax assets will not be realized and is based on both positive and negative evidence about the future, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations.

The effective tax rate in any given financial statement period may differ materially from the statutory rate. These differences may be caused by changes in tax regulations and resulting changes in the deferred tax valuation allowance; changes in the mix and level of income or losses; changes in the expected outcome of tax audits; permanent differences for stock-based compensation, including excess tax benefits; research and development credits; the tax rate differences between the United States and foreign countries; foreign withholding taxes; certain non-deductible expenses, including executive compensation; acquisition-related expenses; and provisions under the Tax Cuts and Jobs Act (“Tax Act”), including a provision to tax global intangible low-taxed income of foreign subsidiaries, a special deduction for foreign-derived intangible income, and a base erosion anti-abuse tax that may tax certain payments between a U.S. corporation and its foreign subsidiaries.

The Company records interest and penalties related to unrecognized tax benefits as income tax expense in its condensed consolidated statement of operations.

Recently Adopted Accounting Pronouncements

Interim Disclosure Requirement: Changes in Stockholders’ Equity

In August 2018, the SEC issued SEC Final Rule 33-10532, Disclosure Update and Simplification, which requires public companies to disclose the changes in each caption of stockholders’ equity and non-controlling interests for the current and comparative year-to-date periods, with subtotals for each interim period and the amount of dividends per share for each class of shares. This rule is effective for interim periods, beginning after November 5, 2018, with early adoption permitted. The Company has presented this disclosure beginning with its fiscal quarter ended January 31, 2019.

Revenue from Contracts with Customers (Topic 606): Revenue Recognition

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASC 606, which supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, “Revenue Recognition” (“ASC 605”) as well as other industry-specific guidance. The core principle of ASC 606 is that an entity should recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services.

The Company adopted ASC 606 as of August 1, 2018 using the modified retrospective transition method and applied ASC 606 to those contracts that were not completed, as defined under ASC 606, as of August 1, 2018. The results for reporting periods beginning after August 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be presented under ASC 605. The main difference in reporting between ASC 605 and ASC 606 is that under ASC 606, the Company recognizes the revenue associated with term licenses not when payments are made or due, but when control of the software license is transferred to the customer, which occurs at or near the time a contract with a customer is executed, whereas under ASC 605, revenue associated with term software licenses was recognized over time in the earlier of the period in which the payments are due or are actually made because of extended payment terms. As a result, under ASC 606, all contractually obligated payments under a term license that the Company reasonably expects to collect would be recognized upon the transfer of control of the on-premise software licenses, which is generally when made available to a customer. Under ASC 606, costs to obtain a contract and costs to fulfill a contract are capitalized as an asset and amortized on a basis that is consistent with the pattern of transfer of performance obligations with which the asset relates. In contrast, under ASC 605, costs to obtain and costs to fulfill a contract were historically expensed as incurred.

The Company recorded a net increase to opening retained earnings of $35.6 million as of August 1, 2018 due to the cumulative impact of adopting ASC 606 using the modified retrospective method. The cumulative impact results from the differences between applying ASC 606 as opposed to applying ASC 605 to existing contracts that were not yet completed as of the date of initial adoption. For contracts completed before August 1, 2018, the Company has not retrospectively applied ASC 606 to the contracts.

Under ASC 606, contracts with customers are reflected in the condensed consolidated balance sheets as follows:

•Accounts receivable, net represents amounts billed to customers in accordance with contract terms for which payment has not yet been received. It is presented net of the allowance for doubtful accounts as part of current assets on the condensed consolidated balance sheets.

•Unbilled accounts receivable, net represents revenue recognized prior to the end of the reporting period for performance on a portion of the contract in advance of both billing the customer and receiving consideration. Under ASC 606, this balance represents our contract assets.

•Contract costs include deferred commissions and their related taxes, royalties, and referral fees. The short-term portion is presented as prepaid and other current assets, and the long-term portion is presented as other assets.

•Deferred costs represent costs related to our professional services that have been deferred to align with revenue recognition. The short-term portion is presented as prepaid and other current assets, and the long-term portion is presented as other assets.

•Deferred revenue represents amounts received as consideration from the Company’s customers in advance of performance on a portion of the contract as of the end of the reporting period. Under ASC 606, this balance represents our contract liabilities.

The Company may receive consideration from its customers in advance of performance on a portion of the contract and, on another portion of the contract, perform in advance of receiving consideration. Contract assets and liabilities related to rights and obligations in a contract are interdependent. Therefore, contract assets and liabilities are presented net at the contract level, as either a single contract asset or a single contract liability, on the condensed consolidated balance sheets.

The following table summarizes the impact to the financial statement line items within the condensed consolidated balance sheets as a result of the initial adoption of ASC 606 (in thousands):



	Balances reported as of July 31, 2018			Cumulative effect adjustment due to adoption of ASC 606			Adjusted beginning balance as of August 1, 2018
Unbilled accounts receivable, net	$	—		$	28,762		$	28,762
Contract costs, net	—			12,932			12,932
Deferred tax asset, net	87,482			(10,612		)	76,870
Prepaid expenses and other assets	53,035			(239		)	52,796
Other liabilities	(21,054		)	7,055			(13,999		)
Deferred revenue, net	(137,896		)	(2,341		)	(140,237		)
Retained earnings	(133,505		)	(35,558		)	(169,063		)

The cumulative effect adjustment on unbilled accounts receivable is driven by revenue that is recognized in advance of billings under ASC 606. The Company’s on-premise software license arrangements result in revenue being recognized at the point in which the software license is transferred to customers, while agreed-upon contractual terms generally provide for billings to occur over a stated licensing period.

The cumulative effect adjustment on contract costs is driven by the requirement in ASC 606 to capitalize incremental, direct costs of either obtaining or fulfilling a contract. In prior periods, these costs were expensed as incurred under ASC 605.

The cumulative effect adjustment on deferred revenue is primarily driven by the requirement under ASC 606 to recognize revenue upfront rather than over the contract period as described in the paragraph above related to unbilled accounts receivable.

The following table summarizes the financial statement line items within the condensed consolidated balance sheets as of January 31, 2019 that were impacted as a result of the adoption of ASC 606 (in thousands):



	As Reported			Change			As if presented under ASC 605
Unbilled accounts receivable, net	$	58,952		$	(58,952	)	$	—
Contract costs, net⁽¹⁾	16,614			(16,614		)	—
Deferred tax asset, net	83,922			36,240			120,162
Prepaid expenses and other assets	48,950			1,431			50,381
Other liabilities	(15,015		)	(7,673		)	(22,688		)
Deferred revenue, net	(112,360		)	(75,648		)	(188,008		)
Retained earnings	(175,308		)	117,915			(57,393		)

⁽¹⁾The short- and long-term portions of this balance are reported in ‘Prepaid expenses and other current assets’ and ‘Other assets,’ respectively, on the condensed consolidated balance sheets.

The difference between the 'As Reported' amounts and the 'As if presented under ASC 605' amounts within the condensed consolidated balance sheets is due to the same considerations described above with respect to the transition adjustments as a result of the adoption of ASC 606.

The following table summarizes the financial statement line items within the condensed consolidated statement of operations that were impacted as a result of the adoption of ASC 606 for the three months ended January 31, 2019 (in thousands):



	As Reported			Change			As if presented under ASC 605
Revenue:
License and subscription	$	87,124		$	(39,330	)	$	47,794
Maintenance	21,264			357			21,621
Services	60,878			4,996			65,874
Total revenue	169,266			(33,977		)	135,289
Cost of revenue	79,630			(285		)	79,345
Gross profit	89,636			(33,692		)	55,944
Total operating expenses	95,185			2,409			97,594
Loss from operations	(5,549		)	(36,785		)	(42,334		)
Other income (expense), net	4,414			(421		)	3,993
Benefit from income taxes	(1,891		)	(8,724		)	(10,615		)
Net income (loss)	$	756		$	(28,481	)	$	(27,725	)
Net income (loss) per share	$	0.01		$	(0.35	)	$	(0.34	)



	As Reported			Change			As if presented under ASC 605
Revenue:
License and subscription	$	181,393		$	(110,487	)	$	70,906
Maintenance	42,267			994			43,261
Services	125,289			4,906			130,195
Total revenue	348,949			(104,587		)	244,362
Total cost of revenue	162,089			(327		)	161,762
Gross profit	186,860			(104,260		)	82,600
Total operating expenses	191,345			2,714			194,059
Loss from operations	(4,485		)	(107,674		)	(112,159		)
Other income (expense), net	5,532			(312		)	5,220
Benefit from income taxes	(5,198		)	(25,632		)	(30,830		)
Net income (loss)	$	6,245		$	(82,354	)	$	(76,109	)
Net income (loss) per share	$	0.08		$	(1.02	)	$	(0.94	)

The difference between the 'As Reported' amounts and the 'As if presented under ASC 605' amounts within revenue is primarily due to term license fees for the entire committed term being recognized upfront as reported under ASC 606 rather than annually or ratably under ASC 605 and subscription arrangements with escalating annual fees that are recognized ratably over the committed term under ASC 606, rather than as escalating fees in each year under ASC 605, partially offset by the difference in revenue recognized associated with a fixed fee contract. Also, hosting fees associated with our subscriptions are classified as subscription revenue under ASC 606 instead of services revenue under ASC 605.

The impact to the condensed consolidated statements of cash flows for the six months ended January 31, 2019 as a result of adopting ASC 606 was not significant.

Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments (Topic 825) (“ASU 2016-01”), which impacts certain aspects of recognition, measurement, and presentation and disclosure of financial instruments. Under ASU 2016-01, unconsolidated non-equity method investments shall be measured at fair value. If such investments do not have a readily determinable fair value, an election may be made to measure them at cost after considering observable price changes for similar instruments. The Company adopted this standard beginning August 1, 2018, using the measurement alternative election, and the adoption did not result in a significant impact.

Recent Accounting Pronouncements Not Yet Adopted

Leases (Topic 842): Accounting for Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) and subsequent amendments to the initial guidance: ASU No. 2017-13, ASU No. 2018-10, and ASU No. 2018-11 (collectively, “ASC 842”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASC 842 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard will be effective for the Company beginning August 1, 2019, and earlier adoption is permitted. The Company is evaluating the impact this guidance will have on its 2020 fiscal year and subsequent periods, and currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon our adoption of ASC 842, which will increase total assets and total liabilities that the Company reports relative to such amounts prior to adoption.

Income Statement, Reporting Comprehensive Income (Topic 220): Reclassification of Certain Effects from Accumulated Other Comprehensive Income

In February 2018, the FASB issued ASU No. 2018-02, Income Statement, Reporting Comprehensive Income (Topic 220): Reclassification of Certain Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which allows a reclassification of stranded tax effects from accumulated other comprehensive income to retained earnings, as a result of the Tax Act. The standard will be effective for the Company beginning August 1, 2019, and earlier adoption is permitted. The Company is currently evaluating the impact of adopting the new standard for its 2020 fiscal year and subsequent periods.

Intangibles, Goodwill and Other (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract

In August 2018, the FASB issued ASU No. 2018-15, Intangibles, Goodwill and Other (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”), which requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customer in a software licensing arrangement under the internal-use software guidance in ASC 350-40. ASU 2018-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The Company will evaluate the impact of adopting the new standard for its 2021 fiscal year and subsequent periods.

Other recent accounting pronouncements that are or will be applicable to the Company did not, or are not expected to, have a material impact on the Company's present or future financial statements.

Revenue

6 Months Ended

Jan. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue

Disaggregation of Revenue

Revenue for the three months ended January 31, 2019 by revenue type and by geography is as follows (in thousands):



	License and subscription		Maintenance		Services		Total
Geography:
United States	$	59,361	$	13,291	$	41,449	$	114,101
Canada	8,748		2,272		2,514		13,534
Other Americas	385		1,100		1,581		3,066
Total Americas	68,494		16,663		45,544		130,701
United Kingdom	7,146		1,178		3,053		11,377
Other EMEA	7,170		1,749		7,801		16,720
Total EMEA	14,316		2,927		10,854		28,097
Total APAC	4,314		1,674		4,480		10,468
Total revenue	$	87,124	$	21,264	$	60,878	$	169,266

Revenue for the six months ended January 31, 2019 by revenue type and by geography is as follows (in thousands):



	License and subscription		Maintenance		Services		Total
Geography:
United States	$	97,896	$	26,412	$	85,160	$	209,468
Canada	18,170		4,421		5,231		27,822
Other Americas	973		2,181		3,502		6,656
Total Americas	117,039		33,014		93,893		243,946
United Kingdom	15,633		2,309		5,753		23,695
Other EMEA	24,546		3,612		17,301		45,459
Total EMEA	40,179		5,921		23,054		69,154
Total APAC	24,175		3,332		8,342		35,849
Total revenue	181,393		42,267		125,289		348,949

Revenue for the three and six months ended January 31, 2019 by major product or service type is as follows (in thousands):



	Three Months Ended January 31,		Six Months Ended January 31,
	2019		2019
License and subscription
Term license	$	72,002	$	150,928
Subscription	14,770		30,113
Perpetual license	352		352
Maintenance	21,264		42,267
Services	60,878		125,289
Total revenue	$	169,266	$	348,949

Customer Contract - Related Balance Sheet Amounts

The Company generally invoices customers in annual installments payable in advance. The difference between the timing of revenue recognition and the timing of billings results in the recognition of unbilled accounts receivable or deferred revenue in the condensed consolidated balance sheets. Amounts related to customer contract-related arrangements are included on the condensed consolidated balance sheets as of August 1, 2018 and January 31, 2019 as follows (in thousands):



	Beginning balance as of August 1, 2018 as adjusted			Ending balance as of January 31, 2019 as reported
Unbilled accounts receivable, net	$	28,762		$	58,952
Contract costs, net⁽¹⁾	12,932			16,614
Deferred revenue, net	(140,237		)	(112,360		)

Unbilled accounts receivable

Unbilled accounts receivable includes those amounts that are unbilled due to agreed-upon contractual terms in which billing occurs subsequent to revenue recognition. This situation typically occurs when the Company transfers control of time-based software licenses to customers up-front, but invoices customers annually over the term of the license, which is typically two years. Unbilled accounts receivable is classified as either current or non-current based on the duration of remaining time between the date of the condensed consolidated balance sheets and the anticipated due date of the underlying receivables. During the three and six months ended January 31, 2019, $5.2 million and $7.6 million, respectively, of the Company's unbilled contract revenue balance as of August 1, 2018 became an unconditional right to payment and was billed to its customers.

Contract costs

Contract costs consist of customer acquisition costs and costs to fulfill a contract, which includes commissions and their related taxes, royalties, and referral fees. Contract costs are classified as either current or non-current based on the duration of time remaining between the date of the condensed consolidated balance sheets and the anticipated amortization date of the associated costs. The current portion of contract costs in the amount of $3.1 million is included in prepaid and other current assets on the Company’s condensed consolidated balance sheets. The non-current portion of contract costs in the amount of $13.5 million is included in other assets on the Company’s condensed consolidated balance sheets. The Company amortized $1.3 million and $2.4 million of contract costs during the three and six months ended January 31, 2019, respectively.

Deferred revenue

Deferred revenue consists of amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue because the related goods or services have not been transferred. Deferred revenue that will be realized during the 12-month period following the date of the condensed consolidated balance sheets is recorded as current, and the remaining deferred revenue is recorded as non-current. During the three and six months ended January 31, 2019, the Company recognized revenue of $34.8 million and $85.0 million, respectively, related to the Company’s deferred revenue balance reported as of August 1, 2018.

Fair Value of Financial Instruments

6 Months Ended

Jan. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Available-for-sale investments within cash equivalents and investments consist of the following (in thousands):



	January 31, 2019
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
U.S. Government agency securities	$	7,084	$	—	$	(12	)	$	7,072
Commercial paper	438,248		4		(21		)	438,231
Corporate bonds	516,999		416		(292		)	517,123
U.S. Government bonds	65,187		6		(5		)	65,188
Foreign government bonds	9,340		30		—			9,370
Certificates of deposit	88,501		30		(6		)	88,525
Money market funds	57,403		—		—			57,403
Total	$	1,182,762	$	486	$	(336	)	$	1,182,912



	July 31, 2018
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
U.S. Government agency securities	$	9,000	$	—	$	(27	)	$	8,973
Commercial paper	471,966		4		(141		)	471,829
Corporate bonds	432,234		69		(763		)	431,540
U.S. Government bonds	89,986		—		(55		)	89,931
Foreign government bonds	9,306		7		(1		)	9,312
Certificate of deposit	81,985		53		(8		)	82,030
Money market funds	90,766		—		—			90,766
Total	$	1,185,243	$	133	$	(995	)	$	1,184,381

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and the length of time that individual securities have been in an unrealized loss position (in thousands):



	January 31, 2019
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Government agency securities	$	7,072	$	(12	)	$	—	$	—		$	7,072	$	(12	)
Commercial paper	438,231		(21		)	—		—			438,231		(21		)
Corporate bonds	359,383		(240		)	157,741		(52		)	517,124		(292		)
U.S. Government bonds	65,188		(5		)	—		—			65,188		(5		)
Foreign government bonds	5,247		—			4,123		—			9,370		—
Certificate of deposit	78,516		(6		)	10,009					88,525		(6		)
Total	$	953,637	$	(284	)	$	171,873	$	(52	)	$	1,125,510	$	(336	)

As of January 31, 2019, the Company had 149 investments in a gross unrealized loss position. The unrealized losses on its available-for-sale securities were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. The Company does not intend to sell, nor does it believe it will need to sell, these securities before recovering the associated unrealized losses. The Company does not consider any portion of the unrealized losses at January 31, 2019 to be other-than-temporarily impaired, nor are any unrealized losses considered to be credit losses. The Company has recorded the securities at fair value in its condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss). The amount of realized gains and losses reclassified into earnings are based on the specific identification of the securities sold. The realized gains and losses from sales of securities in the periods presented were not material.

The following table summarizes the contractual maturities of the Company’s available-for-sale investments measured at fair value (in thousands):



	January 31, 2019
	Less Than 12 Months		12 to 24 Months		Total
U.S. Government agency securities	$	7,072	$	—	$	7,072
Commercial paper	438,231		—		438,231
Corporate bonds	359,382		157,741		517,123
U.S. Government bonds	65,188		—		65,188
Foreign government bonds	5,247		4,123		9,370
Money market funds	57,403		—		57,403
Certificates of deposit	78,516		10,009		88,525
Total	$	1,011,039	$	171,873	$	1,182,912

Fair Value Measurement

Accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows:

Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2—Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and

Level 3—Unobservable inputs that are supported by little or no market activity, which require the Company to develop its own assumptions.

Available-for-sale investments

The following tables summarize the Company’s available-for-sale investments measured at fair value on a recurring basis, by level within the fair value hierarchy (in thousands):



	January 31, 2019
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Corporate bonds	$	—	$	6,101	$	—	$	6,101
Commercial paper	—		241,332		—		241,332
Money market funds	57,403		—		—		57,403
Total cash equivalents	57,403		247,433		—		304,836
Short-term investments:
U.S. Government agency securities	—		7,072		—		7,072
Commercial paper	—		196,899		—		196,899
U.S. Government bonds	—		65,188		—		65,188
Foreign government bonds	—		5,247		—		5,247
Corporate bonds	—		353,281		—		353,281
Certificates of deposit	—		78,516		—		78,516
Total short-term investments	—		706,203		—		706,203
Long-term investments:
Certificates of deposit	—		10,009		—		10,009
Corporate bonds	—		157,741		—		157,741
Foreign government bonds	—		4,123		—		4,123
Total long-term investments	—		171,873		—		171,873
Total	$	57,403	$	1,125,509	$	—	$	1,182,912



	July 31, 2018
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Commercial paper	$	—	$	269,654	$	—	$	269,654
Corporate bonds	—		3,001		—		3,001
Money market funds	90,766		—		—		90,766
Total cash equivalents	90,766		272,655		—		363,421
Short-term investments:
U.S. Government agency securities	—		1,999		—		1,999
Commercial paper	—		195,376		—		195,376
U.S. Government bonds	—		89,931		—		89,931
Foreign government bonds	—		4,448		—		4,448
Corporate bonds	—		277,248		—		277,248
Certificate of deposit	—		61,006		—		61,006
Total short-term investments	—		630,008		—		630,008
Long-term investments:
U.S. Government agency securities	—		6,974		—		6,974
Certificate of deposit	—		21,024		—		21,024
Corporate bonds	—		151,291		—		151,291
Commercial paper	—		6,799		—		6,799
Foreign government bonds	—		4,864		—		4,864
Total long-term investment	—		190,952		—		190,952
Total	$	90,766	$	1,093,615	$	—	$	1,184,381

Convertible Senior Notes

The fair value of the Convertible Senior Notes was $408.0 million at January 31, 2019. The Company estimates the fair value of the Convertible Senior Notes using commonly accepted valuation methodologies and market-based risk measurements that are directly observable, such as unadjusted quoted prices (Level 2). The Company carries the Convertible Senior Notes at initial fair value less unamortized debt discount and issuance costs on its condensed consolidated balance sheets. For further information on the Convertible Senior Notes, see Note 6.

- Definition

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

+ References + Details

Balance Sheet Components

6 Months Ended

Jan. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):



	January 31, 2019		July 31, 2018
Prepaid expenses	$	12,950	$	14,704
Contract costs	3,123		—
Deferred costs	6,272		9,120
Deposits and other receivables	7,889		6,686
Prepaid expenses and other current assets	$	30,234	$	30,510

Property and Equipment, net

Property and equipment consist of the following (in thousands):



	January 31, 2019			July 31, 2018
Computer hardware	$	25,574		$	24,879
Purchased software	4,756			4,664
Capitalized software development costs	4,560			3,978
Furniture and fixtures	5,260			4,217
Leasehold improvements	23,526			10,751
Total property and equipment	63,676			48,489
Less accumulated depreciation	(33,659		)	(29,894		)
Property and equipment, net	$	30,017		$	18,595

As of January 31, 2019 and July 31, 2018, no property and equipment was pledged as collateral. Depreciation expense, excluding the amortization of software development costs, was $2.3 million and $1.9 million for each of the three months ended January 31, 2019 and 2018, respectively, and was $4.4 million and $3.8 million for each of the six months ended January 31, 2019 and 2018, respectively.

The Company capitalizes software development costs for technology applications that the Company will offer solely as cloud-based subscriptions, which is primarily comprised of compensation for employees who are directly associated with the software development projects. The Company begins amortizing the capitalized software development costs once the technology applications are available for general release over the estimated lives of the applications, ranging from three to five years. The Company recognized approximately $0.3 million and $0.1 million in amortization expense in cost of revenue - license and subscription on the accompanying condensed consolidated statements of operations during the three months ended January 31, 2019 and 2018, respectively, and recognized approximately $0.6 million and $0.1 million during the six months ended January 31, 2019 and 2018, respectively.

Other assets

Other assets consists of the following (in thousands):



	January 31, 2019		July 31, 2018
Prepaid expenses	$	2,179	$	2,476
Contract costs	13,491		—
Deferred costs	8,988		9,377
Strategic investments	10,672		10,672
Other assets	$	35,330	$	22,525

The Company’s other assets includes a strategic equity investment in a privately-held company. The strategic investment is a non-marketable equity security, in which the Company does not have a controlling interest or the ability to exert significant influence. This investment does not have a readily determinable market value. The Company records this strategic investment at cost less impairment and adjusts cost for subsequent observable price changes. As of January 31, 2019 and July 31, 2018, there were no changes in the investment’s carrying value of $10.7 million.

Goodwill and Intangible Assets

Changes in the carrying amount of goodwill during the six months ended January 31, 2019 was as follows (in thousands):



Goodwill, July 31, 2018	$	340,877
Changes in carrying value	—
Goodwill, January 31, 2019	$	340,877

The Company’s intangible assets are amortized over their estimated useful lives. Intangible assets consist of the following (in thousands):



		January 31, 2019						July 31, 2018
	Weighted-Average Useful Life (in years)	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
Intangible assets:
Acquired technology	4.5	$	93,600	$	44,079	$	49,521	$	93,600	$	34,189	$	59,411
Customer contracts and related relationships	5.9	35,700		9,600		26,100		35,700		6,633		29,067
Partner relationships	9.0	200		63		137		200		52		148
Trademarks	7.0	2,500		446		2,054		2,500		268		2,232
Order backlog	4.4	8,700		5,475		3,225		8,700		3,904		4,796
Total intangible assets	5.0	$	140,700	$	59,663	$	81,037	$	140,700	$	45,046	$	95,654

Amortization expense was $7.3 million and $7.6 million for the three months ended January 31, 2019 and 2018, respectively, and was $14.6 million and $12.4 million for the six months ended January 31, 2019 and 2018, respectively. The future amortization expense for existing intangible assets as of January 31, 2019, based on their current useful lives, is as follows (in thousands):



	Future Amortization
Fiscal year ending July 31,
2019 (remainder of fiscal year)	$	14,495
2020	26,834
2021	19,965
2022	11,143
2023	3,799
Thereafter	4,801
Total future amortization expense	$	81,037

Accounts Receivables

Accounts receivable, net consists of the following (in thousands):



	January 31, 2019			July 31, 2018
Accounts receivable	$	120,874		$	125,911
Allowance for doubtful accounts	(1,175		)	(1,062		)
Accounts receivable, net	$	119,699		$	124,849

Allowance for Doubtful Accounts

Changes to the allowance for doubtful accounts during the six months ended January 31, 2019 were as follows (in thousands):



Allowance for doubtful accounts as of July 31, 2018	$	1,062
Charges to bad debt and revenue reserves	352
Write-offs, net	(239		)
Allowance for doubtful accounts as of January 31, 2019	$	1,175

Accrued Employee Compensation

Accrued employee compensation consists of the following (in thousands):



	January 31, 2019		July 31, 2018
Bonus	$	16,353	$	31,273
Commission	4,163		7,287
Vacation	13,002		13,132
Salaries, payroll taxes and benefits	10,930		8,443
Total accrued employee compensation	$	44,448	$	60,135

Net Loss Per Share

6 Months Ended

Jan. 31, 2019

Earnings Per Share [Abstract]

Net Loss Per Share

Net Income (Loss) Per Share

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands, except share and per share amounts):



	Three Months Ended January 31,					Six Months Ended January 31,
	2019		2018			2019		2018
Numerator:
Net income (loss)	$	756	$	(45,555	)	$	6,245	$	(54,469	)
Net income (loss) per share:
Basic	$	0.01	$	(0.59	)	$	0.08	$	(0.72	)
Diluted	$	0.01	$	(0.59	)	$	0.08	$	(0.72	)
Denominator:
Weighted average shares used in computing net income (loss) per share:
Basic	81,217,511		76,859,040			81,058,562		76,023,237
Weighted average effect of dilutive stock options	238,436		—			280,481		—
Weighted average effect of dilutive stock awards	735,721		—			950,730		—
Diluted	82,191,668		76,859,040			82,289,773		76,023,237

The following weighted shares outstanding of potential common stock were excluded from the computation of diluted loss per share for the periods presented because including them would have been anti-dilutive:



	Three Months Ended January 31,		Six Months Ended January 31,
	2019	2018	2019	2018
Stock options to purchase common stock	—	657,271	—	601,370
Stock awards	923,640	3,474,549	660,386	3,222,956

Since the Company has the intent and ability to settle the principal amount of the Convertible Senior Notes in cash and any excess in shares of the Company’s common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on net income (loss) per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $113.75 per share for the Convertible Senior Notes. During the three and six months ended January 31, 2019, the Company’s weighted average common stock price was below the conversion price of the Convertible Senior Notes.

Convertible Senior Notes

6 Months Ended

Jan. 31, 2019

Debt Disclosure [Abstract]

Convertible Senior Notes

In March 2018, the Company offered and sold $400.0 million aggregate principal amount of its 1.25% Convertible Senior Notes due 2025, including the underwriters’ exercise in full of their option to purchase an additional $40.0 million of the Convertible Senior Notes. The Convertible Senior Notes were issued in accordance with the Indenture, dated as of March 13, 2018, between the Company and U.S. Bank National Association, as trustee (the “Trustee”) (the “Base Indenture”), as amended and supplemented by the First Supplemental Indenture, dated as of March 13, 2018, between the Company and the Trustee (together with the Base Indenture, the “Indenture”). The net proceeds from the issuance of the Convertible Senior Notes were $387.2 million, after deducting issuance costs.

The Convertible Senior Notes are unsecured obligations of the Company, and interest is payable semi-annually in arrears at a rate of 1.25% per year, on March 15th and September 15th of each year, from September 15, 2018. The Convertible Senior Notes will mature on March 15, 2025 unless repurchased, redeemed, or converted prior to such date. Prior to the close of business on the business day immediately preceding October 15, 2024, the Convertible Senior Notes are convertible at the option of holders during certain periods, upon satisfaction of certain conditions. On or after October 15, 2024, the Convertible Senior Notes are convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Convertible Senior Notes will have an initial conversion rate of 8.7912 shares of common stock per $1,000 principal (equivalent to an initial conversion price of approximately $113.75 per share of its common stock). The conversion rate is subject to customary adjustments upon the occurrence of certain events but will not be adjusted for any accrued and unpaid interest. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election.

The Company may redeem the Convertible Senior Notes, at its option, on or after March 20, 2022, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including at least one of the three trading days immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. No sinking fund is provided for the Convertible Senior Notes. Upon the occurrence of a fundamental change (as defined in the Indenture) prior to the maturity date, holders may require the Company to repurchase all or a portion of the Convertible Senior Notes for cash at a price equal to 100% of the principal amount of the notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

The Convertible Senior Notes rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Convertible Senior Notes, and equal in right of payment to any of its indebtedness that is not so subordinated. The Convertible Senior Notes are effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) and any preferred equity of its current or future subsidiaries.

In accounting for the issuance of the Convertible Senior Notes, the Company separated the Convertible Senior Notes into liability and equity components. The carrying amount of the liability component 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 representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Convertible Senior Notes as a whole. The excess of the principal amount of the Convertible Senior Notes over its carrying amount is amortized to interest expense using the effective interest method over the term of the Convertible Senior Notes. The equity component of the Convertible Senior Notes is recorded as the difference between the initial proceeds less the fair value of the liability component and will not be remeasured as long as it continues to meet the requirements for equity classification. The equity component is net of issuance costs and recorded as additional paid-in capital in stockholders’ equity.

The net carrying value of the liability component, unamortized debt discount and issuance costs of the Convertible Senior Notes was as follows (in thousands):



	January 31, 2019
Principal	$	400,000
Less unamortized:
Debt discount	79,848
Debt issuance cost	9,011
Net carrying amount	$	311,141

The following table sets forth the interest expense recognized related to the Convertible Senior Notes (in thousands, except for percentages):



	Three Months Ended January 31, 2019			Six Months Ended January 31, 2019
Contractual interest expense	$	1,250		$	2,500
Amortization of debt discount	2,765			5,495
Amortization of debt issuance costs	262			517
Total	$	4,277		$	8,512
Effective interest rate of the liability component	5.53		%	5.53		%

Capped Call

The Company paid $37.2 million to purchase capped calls with certain financial institutions pursuant to capped call confirmations (the “Capped Calls”). The Capped Calls have an initial strike price of $113.75 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Convertible Senior Notes. The Capped Calls have initial cap prices of $153.13 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, 3.5 million shares of common stock. By entering into the Capped Calls, the Company expects to reduce the potential dilution to its common stock (or, in the event the conversion is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion its stock price exceeds the conversion price under the Convertible Senior Notes. The Capped Calls are subject to either adjustment or termination upon the occurrence of specified extraordinary events affecting the Company, including a merger event, tender offer, and a nationalization, insolvency, or delisting involving the Company. Additionally, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including change in law, insolvency filing, and hedging disruptions. The Capped Calls were recorded as a reduction of the Company’s additional paid-in capital in the accompanying condensed consolidated balance sheets.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jan. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies There has been no material change in the Company’s contractual obligations and commitments other than in the ordinary course of business since the Company’s fiscal year ended July 31, 2018. See the Annual Report on Form 10-K for the fiscal year ended July 31, 2018 for additional information regarding the Company’s contractual obligations. Leases The Company leases certain facilities and equipment under operating leases. Lease expense for all worldwide facilities and equipment, which is being recognized on a straight-line basis over the terms of the various leases, was $3.6 million and $2.1 million for the three months ended January 31, 2019 and 2018, respectively, and was $6.0 million and $4.0 million for the six months ended January 31, 2019 and 2018, respectively. In December 2017, the Company entered into a new lease agreement for its future headquarter facility and began recognizing rent expense in December 2018 when access and control of the premises was provided. The contractual lease term is expected to commence in June 2019 for a period of 10.5 years. Total payments committed under the lease are $126.4 million. In connection with this lease agreement, the Company also entered into an irrevocable stand-by letter of credit to guarantee the $1.8 million security deposit. Legal Proceedings From time to time, the Company is involved in various legal proceedings and receives claims, arising from the normal course of business activities. The Company has not accrued for estimated losses in the accompanying condensed consolidated financial statements as the Company has determined that no provision for liability nor disclosure is required related to any claim against the Company because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. The Company has not recorded any accrual for claims as of January 31, 2019 or July 31, 2018. The Company expenses legal fees in the period in which they are incurred. Indemnification The Company sells software licenses and services to its customers under contracts (“Software Licenses”). Each Software License contains the terms of the contractual arrangement with the customer and generally includes certain provisions for defending the customer against any claims that the Company’s software infringes upon a patent, copyright, trademark, or other proprietary right of a third party. Software Licenses also indemnify the customer against losses, expenses, and liabilities from damages that may be assessed against the customer in the event the Company’s software is found to infringe upon such third-party rights. The Company has not had to reimburse any of its customers for losses related to indemnification provisions and no material claims against the Company were outstanding as of January 31, 2019 or July 31, 2018. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under various Software Licenses, the Company cannot estimate the amount of potential future payments, if any, related to indemnification provisions. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines, and settlement amounts incurred by any of these persons in any action or proceeding to which any of these persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that may enable the Company to recover a portion of any future amounts paid.

Stockholders' Equity and Stock-based Compensation

6 Months Ended

Jan. 31, 2019

Stockholders' Equity and Stock-based Compensation [Abstract]

Stockholders' Equity and Stock-based Compensation

Stock-Based Compensation Expense and Shareholders’ Equity

Stock-Based Compensation Expense

Stock-based compensation expense related to options and Stock Awards is included in the Company’s condensed consolidated statements of operations as follows (in thousands):



	Three Months Ended January 31,					Six Months Ended January 31,
	2019		2018			2019		2018
Total stock-based compensation	$	24,329	$	25,035		$	47,539	$	44,649
Net impact of deferred stock-based compensation	24		(3		)	147		6
Total stock-based compensation expense	$	24,353	$	25,032		$	47,686	$	44,655
Stock-based compensation expense was charged to the following categories:
Cost of license and subscription revenue	$	535	$	258		$	869	$	432
Cost of maintenance revenue	558		481			1,092		936
Cost of services revenue	6,191		5,446			12,159		10,672
Research and development	6,440		7,697			12,844		12,609
Sales and marketing	5,074		5,024			9,695		9,241
General and administrative	5,555		6,126			11,027		10,765
Total stock-based compensation expense	$	24,353	$	25,032		$	47,686	$	44,655

Total unrecognized stock-based compensation cost for our options and Stock Awards were as follows:



	As of January 31, 2019
	Unrecognized Expense		Weighted Average Expected Recognition Period
	(in thousands)		(in years)
Stock Options	$	4,189	1.9
Stock Awards	196,446		2.4
	$	200,635

Stock Awards

A summary of the Company’s Stock Awards activity under the Company’s equity incentive plans is as follows:



	Stock Awards Outstanding
	Number of Stock Awards Outstanding		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands) ⁽¹⁾
Balance as of July 31, 2018	2,932,155		$	69.43	$	252,752
Granted	1,024,913		$	101.28
Released	(803,618	)	$	88.97	$	76,138
Canceled	(192,747	)	$	78.37
Balance as of January 31, 2019	2,960,703		$	81.26	$	256,634
Expected to vest as of January 31, 2019	2,960,703		$	81.26	$	256,634


(1)	Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $86.68 and $86.20 on January 31, 2019 and July 31, 2018, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release.

Certain executives and employees of the Company received PSUs and TSR PSUs in addition to RSUs. The PSUs included performance-based conditions and vest over a four-year period. The TSR PSUs are subject to total shareholder return rankings relative to the software companies in the S&P Index for a specified performance period or specified performance periods, and vest at the end of three years. In select cases, certain TSR PSUs are also subject to performance-based conditions.

RSAs are issued and outstanding upon grant; however, vesting is based on continued employment. The weighted average grant date fair value is based on the market value of our common stock on the date of grant.

The Company recognized stock-based compensation of $3.3 million and $7.0 million that were related to these performance-based and market-based stock awards for the three months ended January 31, 2019 and 2018, respectively, and $7.0 million and $10.0 million for the six months ended January 31, 2019 and 2018, respectively.

Stock Options

Stock option activity under the Company’s equity incentive plans is as follows:



	Stock Options Outstanding
	Number of Stock Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value⁽¹⁾
					(in years)	(in thousands)
Balance as of July 31, 2018	537,064		$	21.45	4.3	$	34,774
Granted	—
Exercised	(142,818	)	$	7.73		$	12,026
Canceled	(3,563	)	$	10.96
Balance as of January 31, 2019	390,683		$	26.57	4.5	$	23,486
Vested and expected to vest as of January 31, 2019	390,683		$	26.57	4.5	$	23,486
Exercisable as of January 31, 2019	327,330		$	29.59	3.9	$	18,688


⁽¹⁾	Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock prices of $86.68 and $86.20 on January 31, 2019 and July 31, 2018, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.

Valuation of Awards

TSR PSUs

The fair values of our TSR PSUs were estimated at the date of grant using the Monte Carlo simulation model which included the following assumptions:



	Three Months Ended January 31,		Six Months Ended January 31,
	2019	2018	2019	2018
Expected term (in years)	*	*	2.88	2.88
Risk-free interest rate	*	*	2.8%	1.4%
Expected volatility of the Company	*	*	27.2%	28.0%
Average expected volatility of the peer companies in the S&P Index	*	*	33.0%	34.7%
Expected dividend yield	*	*	—%	—%

*There were no TSR PSUs granted during the three months ended January 31, 2019 and 2018.

The number of TSR PSUs that may ultimately vest will vary based on the relative performance of the Company’s total shareholder return rankings relative to the software companies in the S&P Index for a specified performance period or specified performance periods. The Monte Carlo methodology incorporates into the valuation all possible outcomes, including that the Company’s relative performance may result in no shares vesting. As a result, stock-based compensation expense is recognized regardless of the ultimate achievement of the plan’s performance metrics. The expense will be reversed only in the event that a grantee is terminated prior to satisfying the requisite service period.

For a subset of TSR PSUs, the number of shares that may ultimately vest will vary based on the achievement of certain Company specific financial performance metrics in addition to the Company’s total shareholder return condition noted above. As a result, the expense recognized will fluctuate based on the Company’s estimated financial performance relative to the target financial performance metrics.

Common Stock Reserved for Issuance and Public Equity Offering

As of January 31, 2019 and July 31, 2018, the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share and, of these, 81,390,505 and 80,611,698 shares of common stock were issued and outstanding, respectively. Per the terms of the Company’s 2011 Stock Plan, on January first of each year, an additional number of shares equal to 5% of the number of shares of common stock issued and outstanding on the preceding December 31^st is added to the Company’s 2011 Stock Plan reserve. As of January 31, 2019 and July 31, 2018, the Company had reserved shares of common stock for future issuance as follows:



	January 31, 2019	July 31, 2018
Exercise of stock options to purchase common stock	390,683	537,064
Vesting of stock awards	2,960,703	2,932,155
Shares available under stock plans	24,783,516	21,592,494
Total common stock reserved for issuance	28,134,902	25,061,713

In March 2018, the Company completed a public offering of 2,628,571 shares of its common stock, including the sale of shares in connection with the underwriters’ exercise in full of their option to purchase additional shares of common stock from the Company. The public offering price of the shares sold in the offering was $87.50 per share. No shares were sold by the Company’s stockholders in this public offering.

Income Taxes	6 Months Ended
Income Taxes	Jan. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recognized an income tax benefit of $1.9 million and an income tax expense of $48.1 million for the three months ended January 31, 2019 and 2018, respectively; and an income tax benefit of $5.2 million and an income tax expense of $26.0 million for the six months ended January 31, 2019 and 2018, respectively. The change in the amount of the provision for income taxes for each of the three and six months ended January 31, 2019 compared to the same period a year ago was primarily due to a one-time provisional net charge during the quarter ended January 31, 2018 from re-measuring deferred tax assets and liabilities as a result of the Tax Act. The effective tax rate of 167% and (497)% for the three and six months ended January 31, 2019, respectively, differs from the statutory U.S. federal income tax rate of 21% mainly due to permanent differences for stock-based compensation, including excess tax benefits, research and development credits, the tax rate differences between the United States and foreign countries, foreign withholding taxes, and certain non-deductible expenses including executive compensation. During the three and six months ended January 31, 2019, unrecognized tax benefits increased by $0.3 million and $0.6 million, respectively. As of January 31, 2019, the Company had unrecognized tax benefits of $5.8 million that, if recognized, would affect the Company’s effective tax rate. On December 22, 2017, the Tax Act was enacted into law which substantially changed U.S. tax law, including a reduction in the U.S. corporate income tax rate to 21% effective January 1, 2018 and several provisions that may impact the Company in current and future periods. The Tax Act includes a provision to tax global intangible low-taxed income (“GILTI”) of foreign subsidiaries, a special deduction for foreign-derived intangible income, and a base erosion anti-abuse tax (“BEAT”) measure that taxes certain payments between a U.S. corporation and its foreign subsidiaries. These provisions of the Tax Act became effective for the Company beginning on August 1, 2018 and had no impact on the tax benefit for the six months ended January 31, 2019. Under GAAP, the Company can make an accounting policy election to either treat taxes due on the GILTI inclusion as a current period expense or factor such amounts into its measurement of deferred taxes. The Company has elected the current period expense method. In December 2018, the IRS issued proposed regulations related to the BEAT tax, which the Company is in the process of evaluating. If the proposed BEAT regulations are finalized in their current form, the impact may be material to the tax provision in the quarter of enactment. The U.S. Treasury Department, the Internal Revenue Service (“IRS”), and other standard-setting bodies will continue to interpret or issue guidance on how provisions of the Tax Act will be applied or otherwise administered. The Company continues to obtain, analyze, and interpret guidance as it is issued and will revise its estimates as additional information becomes available. Any legislative changes, including any other new or proposed U.S. Department of the Treasury regulations that have yet to be issued, may result in income tax adjustments, which could be material to our provision for income taxes and effective tax rate in the period any such changes are enacted. The Company has finalized its assessment of the transitional impacts of the Tax Act.

Segment Information

6 Months Ended

Jan. 31, 2019

Segment Reporting [Abstract]

Segment Information

The Company operates in one segment. The Company’s chief operating decision maker (the “CODM”), its Chief Executive Officer, manages the Company’s operations on a consolidated basis for purposes of allocating resources. When evaluating the Company’s financial performance, the CODM reviews separate revenue information for the Company’s term license, perpetual license, subscription, maintenance, and services offerings, while all other financial information is reviewed on a consolidated basis. The Company’s principal operations and decision-making functions are located in the United States.

Revenue by country and region based on the billing address of the customer is as follows (in thousands):



	Three Months Ended January 31,				Six Months Ended January 31,
	2019		2018		2019		2018
United States	$	114,101	$	104,422	$	209,468	$	174,256
Canada	13,534		16,458		27,822		26,653
Other Americas	3,066		3,418		6,656		8,160
Total Americas	130,701		124,298		243,946		209,069
United Kingdom	11,377		9,315		23,695		18,652
Other EMEA	16,720		10,554		45,459		17,178
Total EMEA	28,097		19,869		69,154		35,830
Total APAC	10,468		19,621		35,849		27,060
Total revenue	$	169,266	$	163,788	$	348,949	$	271,959

No country or region, other than those presented above, accounted for more than 10% of revenue during the three and six months ended January 31, 2019 and 2018.

The Company’s long-lived assets, including intangibles and goodwill, net by geographic region is as follows (in thousands):



	January 31, 2019		July 31, 2018
Americas	$	446,469	$	449,588
EMEA	5,407		5,491
APAC	55		47
Total	$	451,931	$	455,126

The Company and Summary of Significant Accounting Policies and Estimates (Policies)

6 Months Ended

Jan. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business

Basis of Presentation

Basis of Presentation and Consolidation

Use of Estimates

Foreign Currency

Cash and Cash Equivalents

Investments

Property and Equipment

The estimated useful lives of property and equipment are as follows:



Computer hardware		3 years
Purchased software		3 years
Furniture and fixtures		5 years
Leasehold improvements		Shorter of 10 years or remaining lease term

Software Development Costs

Impairment of Long-Lived Assets, Intangible Assets, and Goodwill

Convertible Senior Notes

Business Combinations

Concentration of Credit Risk

Accounts Receivable and Allowance for Doubtful Accounts

Revenue Recognition

Identification of the contract, or contracts, with the customer

Identification of the performance obligation in the contract

Performance obligations promised in a contract are identified based on the services or products that will be transferred to the customer that are both:


i.	capable of being distinct, whereby the customer can benefit from the service or product either on its own or together with other resources that are readily available from the Company or third parties, and


ii.	distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract.

The Company generates revenue from the following sources, which represent the performance obligations of the Company:


i.	On-premise software licenses related to term or perpetual agreements;


ii.	Maintenance activities that consist of email and phone support, bug fixes, and unspecified software updates and upgrades released when, and if, available during the maintenance term;


iii.	Subscription services related to the Company’s Software-as-a-Service (“SaaS”) offerings; and


iv.	Services related to the implementation and configuration of the Company’s software, reimbursable travel, and training.

Determination of the transaction price

Allocation of the transaction price to the performance obligations in the contract

Recognition of revenue when, or as, the Company satisfies a performance obligation

Performance obligations satisfied at a point in time

On-premise software licenses

Performance obligations satisfied over a period of time

Subscriptions, maintenance activities, and professional service arrangements comprise the majority of distinct performance obligations that are satisfied over a period of time.

Subscription arrangements

Maintenance activities

Services

Revenue from professional service arrangements is recognized over the respective service period as the underlying services are performed.

Contract Costs

Contract costs consists of two components, customer acquisition costs and costs to fulfill a contract.

Advertising Costs

Advertising costs are expensed as incurred and amounts incurred were not material during the three and six months ended January 31, 2019 and 2018.

Stock-Based Compensation

Income Taxes

The Company records interest and penalties related to unrecognized tax benefits as income tax expense in its condensed consolidated statement of operations.

Recently Adopted Accounting Pronouncement

Recently Adopted Accounting Pronouncements

Interim Disclosure Requirement: Changes in Stockholders’ Equity

Revenue from Contracts with Customers (Topic 606): Revenue Recognition

Under ASC 606, contracts with customers are reflected in the condensed consolidated balance sheets as follows:

The following table summarizes the impact to the financial statement line items within the condensed consolidated balance sheets as a result of the initial adoption of ASC 606 (in thousands):



	Balances reported as of July 31, 2018			Cumulative effect adjustment due to adoption of ASC 606			Adjusted beginning balance as of August 1, 2018
Unbilled accounts receivable, net	$	—		$	28,762		$	28,762
Contract costs, net	—			12,932			12,932
Deferred tax asset, net	87,482			(10,612		)	76,870
Prepaid expenses and other assets	53,035			(239		)	52,796
Other liabilities	(21,054		)	7,055			(13,999		)
Deferred revenue, net	(137,896		)	(2,341		)	(140,237		)
Retained earnings	(133,505		)	(35,558		)	(169,063		)



	As Reported			Change			As if presented under ASC 605
Unbilled accounts receivable, net	$	58,952		$	(58,952	)	$	—
Contract costs, net⁽¹⁾	16,614			(16,614		)	—
Deferred tax asset, net	83,922			36,240			120,162
Prepaid expenses and other assets	48,950			1,431			50,381
Other liabilities	(15,015		)	(7,673		)	(22,688		)
Deferred revenue, net	(112,360		)	(75,648		)	(188,008		)
Retained earnings	(175,308		)	117,915			(57,393		)



	As Reported			Change			As if presented under ASC 605
Revenue:
License and subscription	$	87,124		$	(39,330	)	$	47,794
Maintenance	21,264			357			21,621
Services	60,878			4,996			65,874
Total revenue	169,266			(33,977		)	135,289
Cost of revenue	79,630			(285		)	79,345
Gross profit	89,636			(33,692		)	55,944
Total operating expenses	95,185			2,409			97,594
Loss from operations	(5,549		)	(36,785		)	(42,334		)
Other income (expense), net	4,414			(421		)	3,993
Benefit from income taxes	(1,891		)	(8,724		)	(10,615		)
Net income (loss)	$	756		$	(28,481	)	$	(27,725	)
Net income (loss) per share	$	0.01		$	(0.35	)	$	(0.34	)



	As Reported			Change			As if presented under ASC 605
Revenue:
License and subscription	$	181,393		$	(110,487	)	$	70,906
Maintenance	42,267			994			43,261
Services	125,289			4,906			130,195
Total revenue	348,949			(104,587		)	244,362
Total cost of revenue	162,089			(327		)	161,762
Gross profit	186,860			(104,260		)	82,600
Total operating expenses	191,345			2,714			194,059
Loss from operations	(4,485		)	(107,674		)	(112,159		)
Other income (expense), net	5,532			(312		)	5,220
Benefit from income taxes	(5,198		)	(25,632		)	(30,830		)
Net income (loss)	$	6,245		$	(82,354	)	$	(76,109	)
Net income (loss) per share	$	0.08		$	(1.02	)	$	(0.94	)

The impact to the condensed consolidated statements of cash flows for the six months ended January 31, 2019 as a result of adopting ASC 606 was not significant.

Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities

Recent Accounting Pronouncements Not Yet Adopted

Leases (Topic 842): Accounting for Leases

Income Statement, Reporting Comprehensive Income (Topic 220): Reclassification of Certain Effects from Accumulated Other Comprehensive Income

Intangibles, Goodwill and Other (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract

Other recent accounting pronouncements that are or will be applicable to the Company did not, or are not expected to, have a material impact on the Company's present or future financial statements.

The Company and Summary of Significant Accounting Policies and Estimates (Tables)

6 Months Ended

Jan. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Estimated useful lives of property and equipment

The estimated useful lives of property and equipment are as follows:



Computer hardware		3 years
Purchased software		3 years
Furniture and fixtures		5 years
Leasehold improvements		Shorter of 10 years or remaining lease term

Schedule of ASU 2014-09



	As Reported			Change			As if presented under ASC 605
Revenue:
License and subscription	$	87,124		$	(39,330	)	$	47,794
Maintenance	21,264			357			21,621
Services	60,878			4,996			65,874
Total revenue	169,266			(33,977		)	135,289
Cost of revenue	79,630			(285		)	79,345
Gross profit	89,636			(33,692		)	55,944
Total operating expenses	95,185			2,409			97,594
Loss from operations	(5,549		)	(36,785		)	(42,334		)
Other income (expense), net	4,414			(421		)	3,993
Benefit from income taxes	(1,891		)	(8,724		)	(10,615		)
Net income (loss)	$	756		$	(28,481	)	$	(27,725	)
Net income (loss) per share	$	0.01		$	(0.35	)	$	(0.34	)

The following table summarizes the impact to the financial statement line items within the condensed consolidated balance sheets as a result of the initial adoption of ASC 606 (in thousands):



	Balances reported as of July 31, 2018			Cumulative effect adjustment due to adoption of ASC 606			Adjusted beginning balance as of August 1, 2018
Unbilled accounts receivable, net	$	—		$	28,762		$	28,762
Contract costs, net	—			12,932			12,932
Deferred tax asset, net	87,482			(10,612		)	76,870
Prepaid expenses and other assets	53,035			(239		)	52,796
Other liabilities	(21,054		)	7,055			(13,999		)
Deferred revenue, net	(137,896		)	(2,341		)	(140,237		)
Retained earnings	(133,505		)	(35,558		)	(169,063		)



	As Reported			Change			As if presented under ASC 605
Unbilled accounts receivable, net	$	58,952		$	(58,952	)	$	—
Contract costs, net⁽¹⁾	16,614			(16,614		)	—
Deferred tax asset, net	83,922			36,240			120,162
Prepaid expenses and other assets	48,950			1,431			50,381
Other liabilities	(15,015		)	(7,673		)	(22,688		)
Deferred revenue, net	(112,360		)	(75,648		)	(188,008		)
Retained earnings	(175,308		)	117,915			(57,393		)

Revenue (Tables)

6 Months Ended

Jan. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Revenue for the three months ended January 31, 2019 by revenue type and by geography is as follows (in thousands):



	License and subscription		Maintenance		Services		Total
Geography:
United States	$	59,361	$	13,291	$	41,449	$	114,101
Canada	8,748		2,272		2,514		13,534
Other Americas	385		1,100		1,581		3,066
Total Americas	68,494		16,663		45,544		130,701
United Kingdom	7,146		1,178		3,053		11,377
Other EMEA	7,170		1,749		7,801		16,720
Total EMEA	14,316		2,927		10,854		28,097
Total APAC	4,314		1,674		4,480		10,468
Total revenue	$	87,124	$	21,264	$	60,878	$	169,266

Revenue for the six months ended January 31, 2019 by revenue type and by geography is as follows (in thousands):



	License and subscription		Maintenance		Services		Total
Geography:
United States	$	97,896	$	26,412	$	85,160	$	209,468
Canada	18,170		4,421		5,231		27,822
Other Americas	973		2,181		3,502		6,656
Total Americas	117,039		33,014		93,893		243,946
United Kingdom	15,633		2,309		5,753		23,695
Other EMEA	24,546		3,612		17,301		45,459
Total EMEA	40,179		5,921		23,054		69,154
Total APAC	24,175		3,332		8,342		35,849
Total revenue	181,393		42,267		125,289		348,949

Revenue for the three and six months ended January 31, 2019 by major product or service type is as follows (in thousands):



	Three Months Ended January 31,		Six Months Ended January 31,
	2019		2019
License and subscription
Term license	$	72,002	$	150,928
Subscription	14,770		30,113
Perpetual license	352		352
Maintenance	21,264		42,267
Services	60,878		125,289
Total revenue	$	169,266	$	348,949

Contract with Customer, Asset and Liability

Amounts related to customer contract-related arrangements are included on the condensed consolidated balance sheets as of August 1, 2018 and January 31, 2019 as follows (in thousands):



	Beginning balance as of August 1, 2018 as adjusted			Ending balance as of January 31, 2019 as reported
Unbilled accounts receivable, net	$	28,762		$	58,952
Contract costs, net⁽¹⁾	12,932			16,614
Deferred revenue, net	(140,237		)	(112,360		)

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jan. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Available-for-sale Securities Reconciliation

Available-for-sale investments within cash equivalents and investments consist of the following (in thousands):



	January 31, 2019
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
U.S. Government agency securities	$	7,084	$	—	$	(12	)	$	7,072
Commercial paper	438,248		4		(21		)	438,231
Corporate bonds	516,999		416		(292		)	517,123
U.S. Government bonds	65,187		6		(5		)	65,188
Foreign government bonds	9,340		30		—			9,370
Certificates of deposit	88,501		30		(6		)	88,525
Money market funds	57,403		—		—			57,403
Total	$	1,182,762	$	486	$	(336	)	$	1,182,912



	July 31, 2018
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
U.S. Government agency securities	$	9,000	$	—	$	(27	)	$	8,973
Commercial paper	471,966		4		(141		)	471,829
Corporate bonds	432,234		69		(763		)	431,540
U.S. Government bonds	89,986		—		(55		)	89,931
Foreign government bonds	9,306		7		(1		)	9,312
Certificate of deposit	81,985		53		(8		)	82,030
Money market funds	90,766		—		—			90,766
Total	$	1,185,243	$	133	$	(995	)	$	1,184,381

Schedule of Unrealized Loss on Investments



	January 31, 2019
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Government agency securities	$	7,072	$	(12	)	$	—	$	—		$	7,072	$	(12	)
Commercial paper	438,231		(21		)	—		—			438,231		(21		)
Corporate bonds	359,383		(240		)	157,741		(52		)	517,124		(292		)
U.S. Government bonds	65,188		(5		)	—		—			65,188		(5		)
Foreign government bonds	5,247		—			4,123		—			9,370		—
Certificate of deposit	78,516		(6		)	10,009					88,525		(6		)
Total	$	953,637	$	(284	)	$	171,873	$	(52	)	$	1,125,510	$	(336	)

Investments Classified by Contractual Maturity Date

The following table summarizes the contractual maturities of the Company’s available-for-sale investments measured at fair value (in thousands):



	January 31, 2019
	Less Than 12 Months		12 to 24 Months		Total
U.S. Government agency securities	$	7,072	$	—	$	7,072
Commercial paper	438,231		—		438,231
Corporate bonds	359,382		157,741		517,123
U.S. Government bonds	65,188		—		65,188
Foreign government bonds	5,247		4,123		9,370
Money market funds	57,403		—		57,403
Certificates of deposit	78,516		10,009		88,525
Total	$	1,011,039	$	171,873	$	1,182,912

Fair Value, Assets Measured on Recurring Basis

The following tables summarize the Company’s available-for-sale investments measured at fair value on a recurring basis, by level within the fair value hierarchy (in thousands):



	January 31, 2019
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Corporate bonds	$	—	$	6,101	$	—	$	6,101
Commercial paper	—		241,332		—		241,332
Money market funds	57,403		—		—		57,403
Total cash equivalents	57,403		247,433		—		304,836
Short-term investments:
U.S. Government agency securities	—		7,072		—		7,072
Commercial paper	—		196,899		—		196,899
U.S. Government bonds	—		65,188		—		65,188
Foreign government bonds	—		5,247		—		5,247
Corporate bonds	—		353,281		—		353,281
Certificates of deposit	—		78,516		—		78,516
Total short-term investments	—		706,203		—		706,203
Long-term investments:
Certificates of deposit	—		10,009		—		10,009
Corporate bonds	—		157,741		—		157,741
Foreign government bonds	—		4,123		—		4,123
Total long-term investments	—		171,873		—		171,873
Total	$	57,403	$	1,125,509	$	—	$	1,182,912



	July 31, 2018
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Commercial paper	$	—	$	269,654	$	—	$	269,654
Corporate bonds	—		3,001		—		3,001
Money market funds	90,766		—		—		90,766
Total cash equivalents	90,766		272,655		—		363,421
Short-term investments:
U.S. Government agency securities	—		1,999		—		1,999
Commercial paper	—		195,376		—		195,376
U.S. Government bonds	—		89,931		—		89,931
Foreign government bonds	—		4,448		—		4,448
Corporate bonds	—		277,248		—		277,248
Certificate of deposit	—		61,006		—		61,006
Total short-term investments	—		630,008		—		630,008
Long-term investments:
U.S. Government agency securities	—		6,974		—		6,974
Certificate of deposit	—		21,024		—		21,024
Corporate bonds	—		151,291		—		151,291
Commercial paper	—		6,799		—		6,799
Foreign government bonds	—		4,864		—		4,864
Total long-term investment	—		190,952		—		190,952
Total	$	90,766	$	1,093,615	$	—	$	1,184,381

Balance Sheet Components (Tables)

6 Months Ended

Jan. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):



	January 31, 2019		July 31, 2018
Prepaid expenses	$	12,950	$	14,704
Contract costs	3,123		—
Deferred costs	6,272		9,120
Deposits and other receivables	7,889		6,686
Prepaid expenses and other current assets	$	30,234	$	30,510

Property and equipment

Property and equipment consist of the following (in thousands):



	January 31, 2019			July 31, 2018
Computer hardware	$	25,574		$	24,879
Purchased software	4,756			4,664
Capitalized software development costs	4,560			3,978
Furniture and fixtures	5,260			4,217
Leasehold improvements	23,526			10,751
Total property and equipment	63,676			48,489
Less accumulated depreciation	(33,659		)	(29,894		)
Property and equipment, net	$	30,017		$	18,595

Other Assets

Other assets consists of the following (in thousands):



	January 31, 2019		July 31, 2018
Prepaid expenses	$	2,179	$	2,476
Contract costs	13,491		—
Deferred costs	8,988		9,377
Strategic investments	10,672		10,672
Other assets	$	35,330	$	22,525

Schedule of Goodwill

Changes in the carrying amount of goodwill during the six months ended January 31, 2019 was as follows (in thousands):



Goodwill, July 31, 2018	$	340,877
Changes in carrying value	—
Goodwill, January 31, 2019	$	340,877

Schedule of Finite-Lived Intangible Assets

The Company’s intangible assets are amortized over their estimated useful lives. Intangible assets consist of the following (in thousands):



		January 31, 2019						July 31, 2018
	Weighted-Average Useful Life (in years)	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
Intangible assets:
Acquired technology	4.5	$	93,600	$	44,079	$	49,521	$	93,600	$	34,189	$	59,411
Customer contracts and related relationships	5.9	35,700		9,600		26,100		35,700		6,633		29,067
Partner relationships	9.0	200		63		137		200		52		148
Trademarks	7.0	2,500		446		2,054		2,500		268		2,232
Order backlog	4.4	8,700		5,475		3,225		8,700		3,904		4,796
Total intangible assets	5.0	$	140,700	$	59,663	$	81,037	$	140,700	$	45,046	$	95,654

Future Amortization Expense

The future amortization expense for existing intangible assets as of January 31, 2019, based on their current useful lives, is as follows (in thousands):



	Future Amortization
Fiscal year ending July 31,
2019 (remainder of fiscal year)	$	14,495
2020	26,834
2021	19,965
2022	11,143
2023	3,799
Thereafter	4,801
Total future amortization expense	$	81,037

Accounts Receivables and Allowance for Doubtful Accounts

Accounts Receivables

Accounts receivable, net consists of the following (in thousands):



	January 31, 2019			July 31, 2018
Accounts receivable	$	120,874		$	125,911
Allowance for doubtful accounts	(1,175		)	(1,062		)
Accounts receivable, net	$	119,699		$	124,849

Allowance for Doubtful Accounts

Changes to the allowance for doubtful accounts during the six months ended January 31, 2019 were as follows (in thousands):



Allowance for doubtful accounts as of July 31, 2018	$	1,062
Charges to bad debt and revenue reserves	352
Write-offs, net	(239		)
Allowance for doubtful accounts as of January 31, 2019	$	1,175

Accrued Employee Compensation

Accrued employee compensation consists of the following (in thousands):



	January 31, 2019		July 31, 2018
Bonus	$	16,353	$	31,273
Commission	4,163		7,287
Vacation	13,002		13,132
Salaries, payroll taxes and benefits	10,930		8,443
Total accrued employee compensation	$	44,448	$	60,135

Net Loss Per Share (Tables)

6 Months Ended

Jan. 31, 2019

Earnings Per Share [Abstract]

Company's basic and diluted earnings per share

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands, except share and per share amounts):



	Three Months Ended January 31,					Six Months Ended January 31,
	2019		2018			2019		2018
Numerator:
Net income (loss)	$	756	$	(45,555	)	$	6,245	$	(54,469	)
Net income (loss) per share:
Basic	$	0.01	$	(0.59	)	$	0.08	$	(0.72	)
Diluted	$	0.01	$	(0.59	)	$	0.08	$	(0.72	)
Denominator:
Weighted average shares used in computing net income (loss) per share:
Basic	81,217,511		76,859,040			81,058,562		76,023,237
Weighted average effect of dilutive stock options	238,436		—			280,481		—
Weighted average effect of dilutive stock awards	735,721		—			950,730		—
Diluted	82,191,668		76,859,040			82,289,773		76,023,237

Schedule of Antidilutive Securities excluded from EPS



	Three Months Ended January 31,		Six Months Ended January 31,
	2019	2018	2019	2018
Stock options to purchase common stock	—	657,271	—	601,370
Stock awards	923,640	3,474,549	660,386	3,222,956

Convertible Senior Notes (Tables)

6 Months Ended

Jan. 31, 2019

Debt Disclosure [Abstract]

Schedule of convertible debt

The net carrying value of the liability component, unamortized debt discount and issuance costs of the Convertible Senior Notes was as follows (in thousands):



	January 31, 2019
Principal	$	400,000
Less unamortized:
Debt discount	79,848
Debt issuance cost	9,011
Net carrying amount	$	311,141

The following table sets forth the interest expense recognized related to the Convertible Senior Notes (in thousands, except for percentages):



	Three Months Ended January 31, 2019			Six Months Ended January 31, 2019
Contractual interest expense	$	1,250		$	2,500
Amortization of debt discount	2,765			5,495
Amortization of debt issuance costs	262			517
Total	$	4,277		$	8,512
Effective interest rate of the liability component	5.53		%	5.53		%

Stockholders' Equity and Stock-based Compensation (Tables)

6 Months Ended

Jan. 31, 2019

Stockholders' Equity and Stock-based Compensation [Abstract]

Stock-based compensation expense

Stock-based compensation expense related to options and Stock Awards is included in the Company’s condensed consolidated statements of operations as follows (in thousands):



	Three Months Ended January 31,					Six Months Ended January 31,
	2019		2018			2019		2018
Total stock-based compensation	$	24,329	$	25,035		$	47,539	$	44,649
Net impact of deferred stock-based compensation	24		(3		)	147		6
Total stock-based compensation expense	$	24,353	$	25,032		$	47,686	$	44,655
Stock-based compensation expense was charged to the following categories:
Cost of license and subscription revenue	$	535	$	258		$	869	$	432
Cost of maintenance revenue	558		481			1,092		936
Cost of services revenue	6,191		5,446			12,159		10,672
Research and development	6,440		7,697			12,844		12,609
Sales and marketing	5,074		5,024			9,695		9,241
General and administrative	5,555		6,126			11,027		10,765
Total stock-based compensation expense	$	24,353	$	25,032		$	47,686	$	44,655

Unrecognized compensation cost, adjusted for estimated forfeitures

Total unrecognized stock-based compensation cost for our options and Stock Awards were as follows:



	As of January 31, 2019
	Unrecognized Expense		Weighted Average Expected Recognition Period
	(in thousands)		(in years)
Stock Options	$	4,189	1.9
Stock Awards	196,446		2.4
	$	200,635

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

A summary of the Company’s Stock Awards activity under the Company’s equity incentive plans is as follows:



	Stock Awards Outstanding
	Number of Stock Awards Outstanding		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands) ⁽¹⁾
Balance as of July 31, 2018	2,932,155		$	69.43	$	252,752
Granted	1,024,913		$	101.28
Released	(803,618	)	$	88.97	$	76,138
Canceled	(192,747	)	$	78.37
Balance as of January 31, 2019	2,960,703		$	81.26	$	256,634
Expected to vest as of January 31, 2019	2,960,703		$	81.26	$	256,634


(1)	Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $86.68 and $86.20 on January 31, 2019 and July 31, 2018, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release.

Schedule of Share-based Compensation, Stock Options, Activity

Stock option activity under the Company’s equity incentive plans is as follows:



	Stock Options Outstanding
	Number of Stock Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value⁽¹⁾
					(in years)	(in thousands)
Balance as of July 31, 2018	537,064		$	21.45	4.3	$	34,774
Granted	—
Exercised	(142,818	)	$	7.73		$	12,026
Canceled	(3,563	)	$	10.96
Balance as of January 31, 2019	390,683		$	26.57	4.5	$	23,486
Vested and expected to vest as of January 31, 2019	390,683		$	26.57	4.5	$	23,486
Exercisable as of January 31, 2019	327,330		$	29.59	3.9	$	18,688


⁽¹⁾	Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock prices of $86.68 and $86.20 on January 31, 2019 and July 31, 2018, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.

Schedule of Valuation Assumptions Using Monte Carlo Simulation Model

The fair values of our TSR PSUs were estimated at the date of grant using the Monte Carlo simulation model which included the following assumptions:



	Three Months Ended January 31,		Six Months Ended January 31,
	2019	2018	2019	2018
Expected term (in years)	*	*	2.88	2.88
Risk-free interest rate	*	*	2.8%	1.4%
Expected volatility of the Company	*	*	27.2%	28.0%
Average expected volatility of the peer companies in the S&P Index	*	*	33.0%	34.7%
Expected dividend yield	*	*	—%	—%

*There were no TSR PSUs granted during the three months ended January 31, 2019 and 2018.

Common Stock Reserved for Issuance

As of January 31, 2019 and July 31, 2018, the Company had reserved shares of common stock for future issuance as follows:



	January 31, 2019	July 31, 2018
Exercise of stock options to purchase common stock	390,683	537,064
Vesting of stock awards	2,960,703	2,932,155
Shares available under stock plans	24,783,516	21,592,494
Total common stock reserved for issuance	28,134,902	25,061,713

Segment Information (Tables)

6 Months Ended

Jan. 31, 2019

Segment Reporting [Abstract]

Revenues by country

Revenue by country and region based on the billing address of the customer is as follows (in thousands):



	Three Months Ended January 31,				Six Months Ended January 31,
	2019		2018		2019		2018
United States	$	114,101	$	104,422	$	209,468	$	174,256
Canada	13,534		16,458		27,822		26,653
Other Americas	3,066		3,418		6,656		8,160
Total Americas	130,701		124,298		243,946		209,069
United Kingdom	11,377		9,315		23,695		18,652
Other EMEA	16,720		10,554		45,459		17,178
Total EMEA	28,097		19,869		69,154		35,830
Total APAC	10,468		19,621		35,849		27,060
Total revenue	$	169,266	$	163,788	$	348,949	$	271,959

Property and equipment, net by geographic region

The Company’s long-lived assets, including intangibles and goodwill, net by geographic region is as follows (in thousands):



	January 31, 2019		July 31, 2018
Americas	$	446,469	$	449,588
EMEA	5,407		5,491
APAC	55		47
Total	$	451,931	$	455,126

The Company and Summary of Significant Accounting Policies and Estimates (Details Textual) $ in Thousands	3 Months Ended	6 Months Ended
	Jan. 31, 2019 customer	Jan. 31, 2019	Aug. 01, 2018 USD ($)	Mar. 31, 2018 USD ($)	Jul. 31, 2017 customer
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Number of customers, concentration of credit risk \| customer	0
Percentage of Revenue	10.00%
Number of customers, concentration of credit risk receivables \| customer					0
Percentage of accounts receivable	10.00%	10.00%			10.00%
Revenue, performance obligations, timing		Term licenses generally have a two-year initial term with a customer option to renew on an annual basis after the initial term. The related maintenance for term licenses follow the same contract periods. Subscriptions are typically sold with a three- to five- year initial term with a customer option to renew on an annual basis after the initial term. Professional services typically are time and materials contracts that last for a period of approximately one year. The Company’s subscription periods are generally three to five years. Subscription services are typically satisfied over three to five years, maintenance services are generally satisfied within one year, and professional services are typically satisfied within one year.
Capitalized contract cost, amortization period		5 years
Cumulative effect of 2014-09			$ 35,558
Restricted Stock Units (RSUs)
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Period of time based Vesting	4 years
TSR PSUs
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Period of time based Vesting	3 years
Senior Notes \| Convertible Senior Notes, 1.250%
Finite-Lived Intangible Assets [Line Items]
Aggregate principal amount				$ 400,000
Stated interest rate				1.25%
Accounting Standards Update 2014-09 [Member]
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Cumulative effect of 2014-09			$ 35,600
Minimum \| Computer software
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives		3 years
Maximum \| Computer software
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives		5 years

The Company and Summary of Significant Accounting Policies and Estimates (Property and Equipment Useful Lives) (Details)	6 Months Ended
	Jan. 31, 2019
Computer hardware
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Purchased software
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Useful Life	5 years

The Company and Summary of Significant Accounting Policies and Estimates (2014-09) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Aug. 01, 2018	Jul. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, performance obligations, timing			Term licenses generally have a two-year initial term with a customer option to renew on an annual basis after the initial term. The related maintenance for term licenses follow the same contract periods. Subscriptions are typically sold with a three- to five- year initial term with a customer option to renew on an annual basis after the initial term. Professional services typically are time and materials contracts that last for a period of approximately one year. The Company’s subscription periods are generally three to five years. Subscription services are typically satisfied over three to five years, maintenance services are generally satisfied within one year, and professional services are typically satisfied within one year.
Statement of Financial Position [Abstract]
Unbilled accounts receivable, net	$ 58,952		$ 58,952		$ 28,762
Contract costs, net(1)	16,614		16,614		12,932
Deferred taxes, net	(83,922)		(83,922)		(76,870)	$ (87,482)
Prepaid expenses and other assets	48,950		48,950		52,796
Other liabilities	(15,015)		(15,015)		(13,999)
Deferred revenue, net	(112,360)		(112,360)		(140,237)
Retained Earnings	(175,308)		(175,308)		$ (169,063)	(133,505)
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenue	169,266	$ 163,788	348,949	$ 271,959
Total revenues	169,266	163,788	348,949	271,959
Total cost of revenue	79,630	67,769	162,089	130,663
Gross Profit	89,636	96,019	186,860	141,296
Operating Expenses	95,185	96,684	191,345	174,676
Operating Income (Loss)	(5,549)	(665)	(4,485)	(33,380)
Other income (expense), net	4,414		5,532
Provision for (benefit from) income taxes	(1,891)	48,114	(5,198)	25,959
Net loss	$ 756	$ (45,555)	$ 6,245	$ (54,469)
Earnings Per Share, Basic	$ 0.01	$ (0.59)	$ 0.08	$ (0.72)
Calculated under Revenue Guidance in Effect before Topic 606
Statement of Financial Position [Abstract]
Unbilled accounts receivable, net	$ 0		$ 0
Contract costs, net(1)	0		0
Deferred taxes, net	(120,162)		(120,162)
Prepaid expenses and other assets	50,381		50,381
Other liabilities	(22,688)		(22,688)
Deferred revenue, net	(188,008)		(188,008)
Retained Earnings	(57,393)		(57,393)
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenues	135,289		244,362
Total cost of revenue	79,345		161,762
Gross Profit	55,944		82,600
Operating Expenses	97,594		194,059
Operating Income (Loss)	(42,334)		(112,159)
Other income (expense), net	3,993		5,220
Provision for (benefit from) income taxes	(10,615)		(30,830)
Net loss	$ (27,725)		$ (76,109)
Earnings Per Share, Basic	$ (0.34)		$ (0.94)
Accounting Standards Update 2014-09 [Member] \| Calculated under Revenue Guidance in Effect before Topic 606
Statement of Financial Position [Abstract]
Unbilled accounts receivable, net						0
Contract costs						0
Deferred taxes, net						(87,482)
Prepaid expenses and other assets						53,035
Other liabilities						(21,054)
Deferred revenue, net						(137,896)
Accounting Standards Update 2014-09 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606
Statement of Financial Position [Abstract]
Unbilled accounts receivable, net	$ (58,952)		$ (58,952)			28,762
Contract costs						12,932
Contract costs, net(1)	(16,614)		(16,614)
Deferred taxes, net	(36,240)		(36,240)			(10,612)
Prepaid expenses and other assets	1,431		1,431			(239)
Other liabilities	(7,673)		(7,673)			7,055
Deferred revenue, net	(75,648)		(75,648)			(2,341)
Retained Earnings	117,915		117,915			$ (35,558)
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenues	(33,977)		(104,587)
Total cost of revenue	(285)		(327)
Gross Profit	(33,692)		(104,260)
Operating Expenses	2,409		2,714
Operating Income (Loss)	(36,785)		(107,674)
Other income (expense), net	(421)		(312)
Provision for (benefit from) income taxes	(8,724)		(25,632)
Net loss	$ (28,481)		$ (82,354)
Earnings Per Share, Basic	$ (0.35)		$ (1.02)
License and subscription
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenue	$ 87,124	$ 84,221	$ 181,393	$ 114,314
Total cost of revenue	14,739	9,040	28,069	15,755
License and subscription \| Calculated under Revenue Guidance in Effect before Topic 606
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenue	47,794		70,906
License and subscription \| Accounting Standards Update 2014-09 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenue	(39,330)		(110,487)
Maintenance
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenue	21,264	19,110	42,267	38,040
Total cost of revenue	3,954	3,593	7,822	7,060
Maintenance \| Calculated under Revenue Guidance in Effect before Topic 606
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenue	21,621		43,261
Maintenance \| Accounting Standards Update 2014-09 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenue	357		994
Services
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenue	60,878	60,457	125,289	119,605
Total cost of revenue	60,937	$ 55,136	126,198	$ 107,848
Services \| Calculated under Revenue Guidance in Effect before Topic 606
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenue	65,874		130,195
Services \| Accounting Standards Update 2014-09 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Total revenue	$ 4,996		$ 4,906

Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 169,266	$ 163,788	$ 348,949	$ 271,959
United States
Disaggregation of Revenue [Line Items]
Total revenue	114,101		209,468
Canada
Disaggregation of Revenue [Line Items]
Total revenue	13,534		27,822
Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	3,066		6,656
Total Americas
Disaggregation of Revenue [Line Items]
Total revenue	130,701		243,946
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	11,377		23,695
Other EMEA
Disaggregation of Revenue [Line Items]
Total revenue	16,720		45,459
Total EMEA
Disaggregation of Revenue [Line Items]
Total revenue	28,097		69,154
Total APAC
Disaggregation of Revenue [Line Items]
Total revenue	10,468		35,849
License and subscription
Disaggregation of Revenue [Line Items]
Total revenue	87,124	84,221	181,393	114,314
License and subscription \| United States
Disaggregation of Revenue [Line Items]
Total revenue	59,361		97,896
License and subscription \| Canada
Disaggregation of Revenue [Line Items]
Total revenue	8,748		18,170
License and subscription \| Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	385		973
License and subscription \| Total Americas
Disaggregation of Revenue [Line Items]
Total revenue	68,494		117,039
License and subscription \| United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	7,146		15,633
License and subscription \| Other EMEA
Disaggregation of Revenue [Line Items]
Total revenue	7,170		24,546
License and subscription \| Total EMEA
Disaggregation of Revenue [Line Items]
Total revenue	14,316		40,179
License and subscription \| Total APAC
Disaggregation of Revenue [Line Items]
Total revenue	4,314		24,175
Term license
Disaggregation of Revenue [Line Items]
Total revenue	72,002		150,928
Subscription
Disaggregation of Revenue [Line Items]
Total revenue	14,770		30,113
Perpetual license
Disaggregation of Revenue [Line Items]
Total revenue	352		352
Maintenance
Disaggregation of Revenue [Line Items]
Total revenue	21,264	19,110	42,267	38,040
Maintenance \| United States
Disaggregation of Revenue [Line Items]
Total revenue	13,291		26,412
Maintenance \| Canada
Disaggregation of Revenue [Line Items]
Total revenue	2,272		4,421
Maintenance \| Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	1,100		2,181
Maintenance \| Total Americas
Disaggregation of Revenue [Line Items]
Total revenue	16,663		33,014
Maintenance \| United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	1,178		2,309
Maintenance \| Other EMEA
Disaggregation of Revenue [Line Items]
Total revenue	1,749		3,612
Maintenance \| Total EMEA
Disaggregation of Revenue [Line Items]
Total revenue	2,927		5,921
Maintenance \| Total APAC
Disaggregation of Revenue [Line Items]
Total revenue	1,674		3,332
Services
Disaggregation of Revenue [Line Items]
Total revenue	60,878	$ 60,457	125,289	$ 119,605
Services \| United States
Disaggregation of Revenue [Line Items]
Total revenue	41,449		85,160
Services \| Canada
Disaggregation of Revenue [Line Items]
Total revenue	2,514		5,231
Services \| Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	1,581		3,502
Services \| Total Americas
Disaggregation of Revenue [Line Items]
Total revenue	45,544		93,893
Services \| United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	3,053		5,753
Services \| Other EMEA
Disaggregation of Revenue [Line Items]
Total revenue	7,801		17,301
Services \| Total EMEA
Disaggregation of Revenue [Line Items]
Total revenue	10,854		23,054
Services \| Total APAC
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,480		$ 8,342

Revenue (Contract with Customer) (Details) - USD ($) $ in Thousands	Jan. 31, 2019	Aug. 01, 2018
Revenue from Contract with Customer [Abstract]
Unbilled accounts receivable, net	$ 58,952	$ 28,762
Contract costs, net(1)	16,614	12,932
Deferred revenue, net	$ (112,360)	$ (140,237)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Jan. 31, 2019	Jan. 31, 2019	Jul. 31, 2018
Revenue from Contract with Customer [Abstract]
Unbilled contract revenue reclassified to receivable	$ 5,200	$ 7,600
Contract costs, current	3,123	3,123	$ 0
Contract costs, noncurrent	13,491	13,491	$ 0
Amortization of capitalized contract cost	1,300	2,400
Contract with customer, liability, revenue recognized	35,000	85,000
Remaining performance obligation, amount	$ 169,100	$ 169,100

Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 1,182,762	$ 1,185,243
Unrealized Gains	486	133
Unrealized Losses	(336)	(995)
Total	1,182,912	1,184,381
U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	7,084	9,000
Unrealized Gains	0	0
Unrealized Losses	(12)	(27)
Total	7,072	8,973
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	438,248	471,966
Unrealized Gains	4	4
Unrealized Losses	(21)	(141)
Total	438,231	471,829
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	516,999	432,234
Unrealized Gains	416	69
Unrealized Losses	(292)	(763)
Total	517,123	431,540
U.S. Government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	65,187	89,986
Unrealized Gains	6	0
Unrealized Losses	(5)	(55)
Total	65,188	89,931
Foreign government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	9,340	9,306
Unrealized Gains	30	7
Unrealized Losses	0	(1)
Total	9,370	9,312
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	88,501	81,985
Unrealized Gains	30	53
Unrealized Losses	(6)	(8)
Total	88,525	82,030
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	57,403	90,766
Unrealized Gains	0	0
Unrealized Losses	0	0
Total	$ 57,403	$ 90,766

Fair Value of Financial Instruments (Details 2) $ in Thousands	Jan. 31, 2019 USD ($) investment
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract]
Less than Twelve Months, Fair Value	$ 953,637
Less than 12 Months, Aggregate Losses	(284)
Twelve Months or Longer, Fair Value	171,873
12 Months or Longer, Aggregate Losses	(52)
Fair Value	1,125,510
Aggregate Losses	$ (336)
Number of Positions \| investment	149
U.S. Government agency securities
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract]
Less than Twelve Months, Fair Value	$ 7,072
Less than 12 Months, Aggregate Losses	(12)
Twelve Months or Longer, Fair Value	0
12 Months or Longer, Aggregate Losses	0
Fair Value	7,072
Aggregate Losses	(12)
Commercial paper
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract]
Less than Twelve Months, Fair Value	438,231
Less than 12 Months, Aggregate Losses	(21)
Twelve Months or Longer, Fair Value	0
12 Months or Longer, Aggregate Losses	0
Fair Value	438,231
Aggregate Losses	(21)
Corporate bonds
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract]
Less than Twelve Months, Fair Value	359,383
Less than 12 Months, Aggregate Losses	(240)
Twelve Months or Longer, Fair Value	157,741
12 Months or Longer, Aggregate Losses	(52)
Fair Value	517,124
Aggregate Losses	(292)
U.S. Government bonds
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract]
Less than Twelve Months, Fair Value	65,188
Less than 12 Months, Aggregate Losses	(5)
Twelve Months or Longer, Fair Value	0
12 Months or Longer, Aggregate Losses	0
Fair Value	65,188
Aggregate Losses	(5)
Foreign government bonds
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract]
Less than Twelve Months, Fair Value	5,247
Less than 12 Months, Aggregate Losses	0
Twelve Months or Longer, Fair Value	4,123
12 Months or Longer, Aggregate Losses	0
Fair Value	9,370
Aggregate Losses	0
Certificates of deposit
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract]
Less than Twelve Months, Fair Value	78,516
Less than 12 Months, Aggregate Losses	(6)
Twelve Months or Longer, Fair Value	10,009
12 Months or Longer, Aggregate Losses
Fair Value	88,525
Aggregate Losses	$ (6)

Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months	$ 1,011,039
12 to 24 Months	171,873
Total	1,182,912	$ 1,184,381
U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months	7,072
12 to 24 Months	0
Total	7,072	8,973
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months	438,231
12 to 24 Months	0
Total	438,231	471,829
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months	359,382
12 to 24 Months	157,741
Total	517,123	431,540
U.S. Government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months	65,188
12 to 24 Months	0
Total	65,188	89,931
Foreign government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months	5,247
12 to 24 Months	4,123
Total	9,370	9,312
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months	57,403
12 to 24 Months	0
Total	57,403	90,766
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months	78,516
12 to 24 Months	10,009
Total	$ 88,525	$ 82,030

Fair Value of Financial Instruments (Details 4) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	$ 304,836	$ 363,421
Short-term investments:	706,203	630,008
Long-term investments:	171,873	190,952
Total	1,182,912	1,184,381
Senior Notes \| Convertible Senior Notes, 1.250%
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	408,000
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	57,403	90,766
Short-term investments:	0	0
Long-term investments:	0	0
Total	57,403	90,766
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	247,433	272,655
Short-term investments:	706,203	630,008
Long-term investments:	171,873	190,952
Total	1,125,509	1,093,615
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Short-term investments:	0	0
Long-term investments:	0	0
Total	0	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	6,101
Corporate bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0
Corporate bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	6,101
Corporate bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	241,332	269,654
Commercial paper \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	241,332	269,654
Commercial paper \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	57,403	90,766
Money market funds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	57,403	90,766
Money market funds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Money market funds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:		3,001
Certificates of deposit \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:		0
Certificates of deposit \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:		3,001
Certificates of deposit \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:		0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	353,281	277,248
Long-term investments:	157,741	151,291
Total	517,123	431,540
Corporate bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:	0	0
Corporate bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	353,281	277,248
Long-term investments:	157,741	151,291
Corporate bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:	0	0
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	78,516	61,006
Long-term investments:	10,009	21,024
Total	88,525	82,030
Certificates of deposit \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:	0	0
Certificates of deposit \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	78,516	61,006
Long-term investments:	10,009	21,024
Certificates of deposit \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:	0	0
Foreign government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	5,247	4,448
Long-term investments:	4,123	4,864
Total	9,370	9,312
Foreign government bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:	0	0
Foreign government bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	5,247	4,448
Long-term investments:	4,123	4,864
Foreign government bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:	0	0
U.S. Government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	65,188	89,931
Long-term investments:		6,799
Total	65,188	89,931
U.S. Government bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:		0
U.S. Government bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	65,188	89,931
Long-term investments:		6,799
U.S. Government bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:		0
U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	7,072	1,999
Long-term investments:		6,974
Total	7,072	8,973
U.S. Government agency securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:		0
U.S. Government agency securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	7,072	1,999
Long-term investments:		6,974
U.S. Government agency securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:		0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	196,899	195,376
Total	438,231	471,829
Commercial paper \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	196,899	195,376
Commercial paper \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	$ 0	$ 0

Balance Sheet Components Balance Sheet Components (Details 1) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Prepaid expenses	$ 12,950	$ 14,704
Contract costs	3,123	0
Deferred costs	6,272	9,120
Deposits and other receivables	7,889	6,686
Prepaid expenses and other assets	$ 30,234	$ 30,510

Balance Sheet Components (Details 2) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Computer hardware	$ 25,574	$ 24,879
Purchased software	4,756	4,664
Capitalized software development costs	4,560	3,978
Furniture and fixtures	5,260	4,217
Leasehold improvements	23,526	10,751
Total property and equipment	63,676	48,489
Less accumulated depreciation	(33,659)	(29,894)
Property, Plant and Equipment, Net	$ 30,017	$ 18,595

Balance Sheet Components Balance Sheet Components (Details 3) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Prepaid expenses	$ 2,179	$ 2,476
Contract costs	13,491	0
Deferred costs	8,988	9,377
Strategic investments	10,672	10,672
Other assets	$ 35,330	$ 22,525

Balance Sheet Components (Details 4) $ in Thousands	3 Months Ended
Balance Sheet Components (Details 4) $ in Thousands	Jan. 31, 2019 USD ($)
Goodwill [Roll Forward]
Changes in carrying value	$ 0
Balance at end of period	$ 340,877

Balance Sheet Components (Details 5) - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2019	Jul. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Cost	$ 140,700	$ 140,700
Accumulated Amortization	59,663	45,046
Net Book Value	81,037	95,654
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Cost	93,600	93,600
Accumulated Amortization	44,079	34,189
Net Book Value	49,521	59,411
Customer contracts and related relationships
Finite-Lived Intangible Assets [Line Items]
Cost	35,700	35,700
Accumulated Amortization	9,600	6,633
Net Book Value	26,100	29,067
Partner relationships
Finite-Lived Intangible Assets [Line Items]
Cost	200	200
Accumulated Amortization	63	52
Net Book Value	137	148
Trademarks
Finite-Lived Intangible Assets [Line Items]
Cost	2,500	2,500
Accumulated Amortization	446	268
Net Book Value	2,054	2,232
Order backlog
Finite-Lived Intangible Assets [Line Items]
Cost	8,700	8,700
Accumulated Amortization	5,475	3,904
Net Book Value	$ 3,225	$ 4,796
Weighted Average
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	5 years
Weighted Average \| Acquired technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	4 years 6 months
Weighted Average \| Customer contracts and related relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	5 years 10 months 24 days
Weighted Average \| Partner relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	9 years
Weighted Average \| Trademarks
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	7 years
Weighted Average \| Order backlog
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	4 years 4 months 24 days

Balance Sheet Components (Details 6) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Balance Sheet Related Disclosures [Abstract]
2019 (remainder of fiscal year)	$ 14,495
2020	26,834
2021	19,965
2022	11,143
2023	3,799
Thereafter	4,801
Net Book Value	$ 81,037	$ 95,654

Balance Sheet Components (Details 7) - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jul. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Accounts receivable			$ 120,874	$ 125,911
Allowance for doubtful accounts	$ (1,062)		(1,175)	(1,062)
Accounts receivable, net			$ 119,699	$ 124,849
Allowance for Doubtful Accounts Receivable [Roll Forward]
Allowance for doubtful accounts as of July 31, 2018	(1,062)
Charges to bad debt and revenue reserves	352	$ 0
Write-offs, net	(239)
Allowance for doubtful accounts as of January 31, 2019	$ (1,175)

Balance Sheet Components (Details 8) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Bonus	$ 16,353	$ 31,273
Commission	4,163	7,287
Vacation	13,002	13,132
Salaries, payroll taxes and benefits	10,930	8,443
Total accrued employee compensation	$ 44,448	$ 60,135

Balance Sheet Components (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
Balance Sheet Components (Details Textual) - USD ($)	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2018
Deferred Revenue Arrangement [Line Items]
Property and equipment pledged as collateral	$ 0		$ 0		$ 0
Depreciation	2,300,000	$ 1,900,000	4,400,000	$ 3,800,000
Amortization	300,000	100,000	600,000	100,000
Amortization expense	7,300,000	$ 7,600,000	14,600,000	$ 12,400,000
Preferred Stock \| Other Noncurrent Assets
Deferred Revenue Arrangement [Line Items]
Carrying value	$ 10,700,000		$ 10,700,000		$ 10,700,000

Net Loss Per Share (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Numerator:
Net loss	$ 756	$ (45,555)	$ 6,245	$ (54,469)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.01	$ (0.59)	$ 0.08	$ (0.72)
Diluted (in dollars per share)	$ 0.01	$ (0.59)	$ 0.08	$ (0.72)
Weighted average shares used in computing net income (loss) per share:
Basic (in shares)	81,217,511	76,859,040	81,058,562	76,023,237
Weighted average effect of dilutive stock options	238,436	0	280,481	0
Weighted average effect of dilutive stock awards	735,721	0	950,730	0
Diluted (in shares)	82,191,668	76,859,040	82,289,773	76,023,237

Net Loss Per Share (Details 2) - shares	3 Months Ended		6 Months Ended
Net Loss Per Share (Details 2) - shares	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Stock options to purchase common stock
Net Income (Loss) Per Share (Textual) [Abstract]
Schedule of antidilutive securities excluded from EPS	0	657,271	0	601,370
Stock awards
Net Income (Loss) Per Share (Textual) [Abstract]
Schedule of antidilutive securities excluded from EPS	923,640	3,474,549	660,386	3,222,956

Convertible Senior Notes (Details) - Senior Notes - Convertible Debt $ / shares in Units, $ in Millions	1 Months Ended
	Mar. 31, 2018 USD ($) day shares	Jan. 31, 2019 USD ($) $ / shares
Debt Instrument [Line Items]
Aggregate principal amount		$ 400.0
Stated interest rate	1.25%
Proceeds from issuance of convertible senior notes, net of issuance costs	$ 387.0
Over-Allotment Option
Debt Instrument [Line Items]
Aggregate principal amount	$ 40.0
On or after October 15, 2024
Debt Instrument [Line Items]
Number of shares issuable per 1,000 principal converted (in shares) \| shares	8.7912
Conversion price (in dollars per share) \| $ / shares		$ 113.75
On or after March 20, 2022
Debt Instrument [Line Items]
Debt instrument, redemption, percent	100.00%
Threshold percentage of stock price trigger	130.00%
Threshold trading days \| day	20
Conversion notice period	30 days

Convertible Senior Notes The net carrying value of the liability component (Details) - Senior Notes - Convertible Debt $ in Thousands	Jan. 31, 2019 USD ($)
Debt Instrument [Line Items]
Principal	$ 400,000
Debt discount	79,848
Debt issuance cost	9,011
Net carrying amount	$ 311,141

Convertible Senior Notes Schedule of interest expense recognized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Debt Instrument [Line Items]
Contractual interest expense	$ 4,287	$ 7	$ 8,531	$ 11
Senior Notes \| Convertible Debt
Debt Instrument [Line Items]
Contractual interest expense	1,250		2,500
Amortization of debt discount	2,765		5,495
Amortization of debt issuance costs	262		517
Total	$ 4,277		$ 8,512
Effective interest rate of the liability component	5.53%		5.53%

Convertible Senior Notes Capped Call (Details) - Capped Call shares in Millions, $ in Millions	Jan. 31, 2019 USD ($) $ / Unit shares
Derivative [Line Items]
Derivative amount \| $	$ 37.2
Strike price (in usd per share)	113.75
Derivative, cap price (in usd per share)	153.13
Derivative, number of shares covered (in shares) \| shares	3.5

Commitments and Contingencies (Details Textual)	1 Months Ended	3 Months Ended		6 Months Ended
Commitments and Contingencies (Details Textual)	Dec. 31, 2017 USD ($)	Jan. 31, 2019 USD ($) claim	Jan. 31, 2018 USD ($)	Jan. 31, 2019 USD ($) claim	Jan. 31, 2018 USD ($)	Jul. 31, 2018 USD ($) claim
Commitments and Contingencies Disclosure [Abstract]
Lease expense for all worldwide facilities and equipment		$ 3,600,000	$ 2,100,000	$ 6,000,000	$ 4,000,000
Leases, term of contract	10 years 6 months
Total payments committed under the lease		126,400,000		126,400,000
Line of credit	$ 1,800,000
Loss contingency accrual		$ 0		$ 0		$ 0
Claims outstanding \| claim		0		0		0

Stockholders' Equity and Stock-based Compensation (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 24,329	$ 25,035	$ 47,539	$ 44,649
Net impact of deferred stock-based compensation	24	(3)	147	6
Total stock-based compensation expense	24,353	25,032	47,686	44,655
Total stock-based compensation expense	24,353	25,032	47,686	44,655
Unrecognized Expense	200,635		200,635
Cost of license and subscription revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	535	258	869	432
Cost of maintenance revenues
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	558	481	1,092	936
Cost of services revenues
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	6,191	5,446	12,159	10,672
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	6,440	7,697	12,844	12,609
Sales and marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	5,074	5,024	9,695	9,241
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	5,555	$ 6,126	11,027	$ 10,765
Stock Options
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unrecognized Expense	$ 4,189		4,189
Average Expected Recognition Period	1 year 10 months 24 days
Restricted Stock Units (RSUs)
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unrecognized Expense	$ 196,446		$ 196,446
Average Expected Recognition Period	2 years 4 months 24 days

Stockholders' Equity and Stock-based Compensation (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2019	Jan. 31, 2019	Jul. 31, 2018
Number of Stock Options Outstanding
Balance at beginning of period (in shares)		537,064
Granted (in shares)	0
Exercised (in shares)	(142,818)
Canceled (in shares)	(3,563)
Balance at end of period (in shares)	390,683	390,683	537,064
Vested and expected to vest as of October 31, 2018 (in shares)	390,683	390,683
Exercisable as of October 31, 2018 (in shares)	327,330	327,330
Weighted Average Exercise Price
Balance at beginning of period (in dollars per share)		$ 21.45
Exercised (in dollars per share)	$ 7.73
Canceled (in dollars per share)	10.96
Balance at end of period (in dollars per share)	26.57	26.57	$ 21.45
Vested and expected to vest as of October 31, 2018 (in dollars per share)	26.57	26.57
Exercisable as of October 31, 2018 (in dollars per share)	$ 29.59	$ 29.59
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Life	4 years 6 months		4 years 3 months 18 days
Vested and expected to vest as of January 31, 2019	4 years 6 months
Exercisable as of January 31, 2019	3 years 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value	$ 23,486	$ 23,486	$ 34,774
Exercised	12,026
Vested and expected to vest as of January 31, 2019	23,486	23,486
Exercisable as of January 31, 2019	$ 18,688	$ 18,688
Share price (in dollars per share)	$ 86.68	$ 86.68	$ 86.20
Restricted Stock Units (RSUs)
Number of Stock Awards Outstanding
Balance at beginning of period (in shares)		2,932,155
Granted (in shares)	1,024,913
Released (in shares)	(803,618)
Canceled (in shares)	(192,747)
Balance at end of period (in shares)	2,960,703	2,960,703	2,932,155
Expected to vest as of October 31, 2018 (in shares)	2,960,703	2,960,703
Weighted Average Grant Date Fair Value
Balance at beginning of period (in dollars per share)		$ 69.43
Granted (in dollars per share)	$ 101.28
Released (in dollars per share)	88.97
Canceled (in dollars per share)	78.37
Balance at end of period (in dollars per share)	81.26	81.26	$ 69.43
Expected to vest as of October 31, 2018 (in dollars per share)	$ 81.26	$ 81.26
Aggregate intrinsic value, Nonvested	$ 256,634	$ 256,634	$ 252,752
Aggregate intrinsic value, Vested	76,138
Aggregate intrinsic value, Expected to vest	$ 256,634	$ 256,634

Stockholders' Equity and Stock-based Compensation (Details 3)	6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Summary of assumptions for fair value of employee stock option estimates
Expected life (in years)	2 years 10 months 17 days	2 years 10 months 17 days
Risk Free Interest Rate	2.80%
Expected Volatility Rate	27.20%
Average expected volatility of the peer companies in the S&P Index	33.00%
Expected dividend yield	0.00%
TSR PSUs
Summary of assumptions for fair value of employee stock option estimates
Risk Free Interest Rate		1.40%
Expected Volatility Rate		28.00%
Average expected volatility of the peer companies in the S&P Index		34.70%
Expected dividend yield		0.00%

Stockholders' Equity and Stock-based Compensation (Details 4) - shares	Jan. 31, 2019	Jul. 31, 2018
Common Stock Reserved for Issuance
Exercise of stock options to purchase common stock	390,683	537,064
Stock Options
Common Stock Reserved for Issuance
Exercise of stock options to purchase common stock	390,683	537,064
Vesting of restricted stock units	2,960,703	2,932,155
Issuances of shares available under stock plans	24,783,516	21,592,494
Total common stock reserved for issuance	28,134,902	25,061,713

Stockholders' Equity and Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2018
Class of Stock [Line Items]
New issues (in shares)	2,628,571
Shares issued (in dollars per share)	$ 87.50
Stockholders Equity and Stock Based Compensation (Additional Textual) [Abstract]
Common stock, shares authorized		500,000,000		500,000,000		500,000,000
Common stock, par value		$ 0.0001		$ 0.0001		$ 0.0001
Shares outstanding (in shares)		81,390,505		81,390,505		80,611,698
Additional percentage of shares reserved				5.00%
Restricted Stock Units (RSUs)
Class of Stock [Line Items]
Period of time based Vesting		4 years
Share-based compensation expense		$ 3.3	$ 7.0	$ 7.0	$ 10.0
TSR PSUs
Class of Stock [Line Items]
Period of time based Vesting		3 years

Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Thousands	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2018
Income Tax Disclosure [Abstract]
Benefit from income taxes	$ (1,891)	$ 48,114	$ (5,198)	$ 25,959
Effective income tax rate, continuing operations	167.00%		(497.00%)
Percentage of Statutory federal income tax rate					21.00%
Unrecognized tax benefits	$ 300		$ 600
Unrecognized tax benefits that would impact tax rate	$ 5,800		$ 5,800

Segment Information (Details 1) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details 1) $ in Thousands	Jan. 31, 2019 USD ($) segment	Jan. 31, 2018 USD ($)	Jan. 31, 2019 USD ($)	Jan. 31, 2018 USD ($)
Revenues by country
Number of operating segments \| segment	1
Revenues :
Total revenues	$ 169,266	$ 163,788	$ 348,949	$ 271,959
United States
Revenues :
Total revenues	114,101	104,422	209,468	174,256
Canada
Revenues :
Total revenues	13,534	16,458	27,822	26,653
Other
Revenues :
Total revenues	3,066	3,418	6,656	8,160
Total Americas
Revenues :
Total revenues	130,701	124,298	243,946	209,069
United Kingdom
Revenues :
Total revenues	11,377	9,315	23,695	18,652
Other EMEA
Revenues :
Total revenues	16,720	10,554	45,459	17,178
Total EMEA
Revenues :
Total revenues	28,097	19,869	69,154	35,830
Total APAC
Revenues :
Total revenues	$ 10,468	$ 19,621	$ 35,849	$ 27,060

Segment Information (Details 2) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Long-lived asset, including intangibles and goodwill
Total	$ 451,931	$ 455,126
Americas
Long-lived asset, including intangibles and goodwill
Total	446,469	449,588
EMEA
Long-lived asset, including intangibles and goodwill
Total	5,407	5,491
APAC
Long-lived asset, including intangibles and goodwill
Total	$ 55	$ 47

Label	Element	Value
Other Noncash Income (Expense)	us-gaap_OtherNoncashIncomeExpense	$ 0
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	35,558,000
Accounting Standards Update 2016-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	84,825,000
Accounting Standards Update 2016-09 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	84,114,000
Accounting Standards Update 2016-09 [Member] \| Additional Paid-in Capital [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 711,000