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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Jul. 31, 2018	Aug. 31, 2018	Jan. 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Guidewire Software, Inc.
Entity Central Index Key	0001528396
Current Fiscal Year End Date	--07-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-K/A
Document Period End Date	Jul. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Amendment Flag	true
Amendment Description	The Company is filing this Form 10-K/A to reflect restatements of its audited consolidated financial statements as of and for the fiscal years ended July 31, 2018 (“FY18”) and 2017 (“FY17”), as contained in the Original Filing.
Entity Common Stock, Shares Outstanding (in shares)		80,608,319
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 3,400

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 437,140	$ 263,176
Short-term investments	630,008	310,027
Accounts receivable, net of allowances of $1,062 and $0, respectively	124,849	79,433
Prepaid expenses and other current assets	30,464	26,604
Total current assets	1,222,461	679,240
Long-term investments	190,952	114,585
Property and equipment, net	18,595	14,376
Intangible assets, net	95,654	71,315
Deferred tax assets, net	90,369	37,430
Goodwill	340,877	141,851
Other assets	22,525	20,104
TOTAL ASSETS	1,981,433	1,078,901
CURRENT LIABILITIES:
Accounts payable	30,635	13,416
Accrued employee compensation	60,135	48,882
Deferred revenue, current	127,107	95,994
Other current liabilities	20,280	10,075
Total current liabilities	238,157	168,367
Convertible senior notes, net	305,128	0
Deferred revenue, noncurrent	23,758	19,892
Other liabilities	774	2,112
Total liabilities	567,817	190,371
Commitments and contingencies (Note 7)
STOCKHOLDERS’ EQUITY:
Common stock, par value $0.0001 per share—500,000,000 shares authorized as of July 31, 2018 and 2017; 80,611,698 and 75,007,625 shares issued and outstanding as of July 31, 2018 and 2017, respectively	8	8
Additional paid-in capital	1,296,380	828,415
Accumulated other comprehensive loss	(7,748)	(5,796)
Retained earnings	124,976	65,903
Total stockholders’ equity	1,413,616	888,530
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,981,433	$ 1,078,901

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 2018	Jul. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common Stock, Shares, Issued (in shares)	80,611,698	75,007,625
Common stock, shares outstanding (in shares)	80,611,698	75,007,625

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Revenue:
License and other	$ 309,007	$ 266,711	$ 219,751
Maintenance	77,337	68,643	59,931
Services	266,505	174,179	144,764
Total revenue	652,849	509,533	424,446
Cost of revenues:
License and other	35,452	17,046	7,184
Maintenance	14,783	13,397	11,547
Services	246,548	161,116	133,103
Total cost of revenue	296,783	191,559	151,834
Gross profit:
License and other	273,555	249,665	212,567
Maintenance	62,554	55,246	48,384
Services	19,957	13,063	11,661
Total gross profit	356,066	317,974	272,612
Operating expenses:
Research and development	171,657	130,323	112,496
Sales and marketing	124,117	109,239	92,765
General and administrative	75,916	56,551	50,914
Total operating expenses	371,690	296,113	256,175
Income (loss) from operations	(15,624)	21,861	16,437
Interest income	13,281	5,867	4,850
Interest expense	(6,442)	(13)	0
Other income (expense), net	509	811	(505)
Income before provision for income taxes	(8,276)	28,526	20,782
Provision for income taxes	18,467	10,454	5,806
Net income	$ (26,743)	$ 18,072	$ 14,976
Earnings per share:
Basic (in USD per share)	$ (0.34)	$ 0.24	$ 0.21
Diluted (in USD per share)	$ (0.34)	$ 0.24	$ 0.20
Shares used in computing earnings per share:
Basic (in shares)	77,709,592	73,994,577	72,026,694
Diluted (in shares)	77,709,592	75,328,343	73,765,960

Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ (26,743)	$ 18,072	$ 14,976
Other comprehensive income (loss):
Foreign currency translation adjustments	(1,567)	1,179	(562)
Unrealized (loss) gain on available-for-sale securities, net of tax benefit (expense) of $233, $234, and $(187), respectively	(363)	(231)	288
Reclassification adjustment for realized (gain) loss on available-for-sale securities, included in net income	(22)	(151)	24
Other comprehensive income (loss)	(1,952)	797	(250)
Comprehensive income (loss)	$ (28,695)	$ 18,869	$ 14,726

Consolidated Statements of Comprehensive Income Statement (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Statement of Comprehensive Income [Abstract]
Unrealized (loss) gain on available-for-sale securities, tax	$ 234	$ (187)	$ 38

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Additional paid-in capital [Member]	Accumulated other comprehensive income (loss) [Member]	Retained Earnings (Accumulated deficit) [Member]	Common stock [Member]	Common stock [Member] Common stock [Member]
Balance (in shares) at Jul. 31, 2015						71,005,738
Balance, Value at Jul. 31, 2015	$ 689,388	$ 662,869	$ (6,343)	$ 32,855		$ 7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	652,832					652,832
Issuance of common stock upon exercise of stock options, Value	$ 7,840	7,840
Issuance of common stock upon RSU release (in shares)						1,408,746
Issuance of common stock upon restricted stock unit (RSU) release	0	0
Shares withheld for taxes related to net share settlement (in shares)						(27,397)
Shares withheld for taxes related to net share settlement	(1,488)	(1,488)
Stock-based compensation	66,409	66,409
Tax benefit from the exercise of stock options and vesting of RSUs	7,060	7,060
Purchase of capped calls	0
Net income	14,976			14,976
Foreign currency translation adjustment	(562)		(562)
Unrealized gains on available-for-sale securities	288		288
Reclassification adjustment for realized (gain) loss on available-for-sale securities, included in net income	24		24
Balance (in shares) at Jul. 31, 2016						73,039,919
Balance, Value at Jul. 31, 2016	$ 783,935	742,690	(6,593)	47,831		$ 7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	594,936					594,936
Issuance of common stock upon exercise of stock options, Value	$ 5,563	5,563
Issuance of common stock upon RSU release (in shares)						1,372,770
Issuance of common stock upon restricted stock unit (RSU) release	0	(1)			$ 1
Stock-based compensation	72,695	72,695
Tax benefit from the exercise of stock options and vesting of RSUs	7,468	7,468
Purchase of capped calls	0
Net income	18,072
Foreign currency translation adjustment	1,179		1,179
Unrealized gains on available-for-sale securities	(231)		(231)
Reclassification adjustment for realized (gain) loss on available-for-sale securities, included in net income	(151)		(151)
Balance (in shares) at Jul. 31, 2017						75,007,625
Balance, Value at Jul. 31, 2017	$ 888,530	828,415	(5,796)	65,903		$ 8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	150,924					150,924
Issuance of common stock upon exercise of stock options, Value	$ 2,013	2,013
Issuance of common stock upon RSU release (in shares)						1,255,605
Issuance of common stock upon restricted stock unit (RSU) release	0	0				$ 0
Stock-based compensation	$ 89,176	89,176
Issuance of common stock for Cyence acquisition (in shares)	1,568,973
Issuance of common stock for Cyence acquisition	$ 117,457	117,457
Public offering, net of issuance cost (in shares)	2,628,571
Public offering, net of issuance cost	$ 220,948	220,948
Tax benefit from the exercise of stock options and vesting of RSUs	74,562	74,562
Purchase of capped calls	(37,200)	(37,200)
Net income	(26,743)
Foreign currency translation adjustment	(1,567)		(1,567)
Unrealized gains on available-for-sale securities	(363)		(363)
Reclassification adjustment for realized (gain) loss on available-for-sale securities, included in net income	(22)		(22)
Balance (in shares) at Jul. 31, 2018						80,611,698
Balance, Value at Jul. 31, 2018	1,413,616	1,296,380	$ (7,748)	124,976		$ 8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of new accounting standard (ASU 2016-09) (As Restated)	$ 86,825	$ 1,009		$ 85,816

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ (26,743)	$ 18,072	$ 14,976
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	35,611	18,725	8,842
Amortization of debt discount and issuance costs	4,512	0	0
Stock-based compensation	89,614	71,794	66,131
Excess tax benefit from stock-based compensation	0	(7,468)	(7,102)
Charges to bad debt and revenue reserves	1,062	0	0
Deferred income tax	14,150	(1,227)	(4,568)
Amortization of premium on available-for-sale securities, and other non-cash items	(1,418)	1,462	2,516
Changes in operating assets and liabilities:
Accounts receivable	(40,832)	(9,750)	(75)
Prepaid expenses and other assets	(2,737)	(9,463)	(7,668)
Accounts payable	16,794	1,311	603
Accrued employee compensation	9,230	7,138	4,114
Other liabilities	8,858	6,612	5,993
Deferred revenue	32,358	41,553	16,138
Net cash provided by operating activities	140,459	138,759	99,900
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities	(859,657)	(462,035)	(652,017)
Sales and maturities of available-for-sale securities	464,143	547,630	597,405
Purchase of property and equipment	(9,398)	(5,886)	(7,111)
Capitalized software development costs	(2,613)	(784)	0
Strategic investment	0	(4,677)	0
Acquisitions of business, net of cash acquired	(130,059)	(187,590)	(39,530)
Net cash used in investing activities	(537,584)	(113,342)	(101,253)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible senior notes, net of issuance costs	387,239	0	0
Proceeds from issuance of common stock, net of issuance costs	220,948	0	0
Purchase of capped calls	(37,200)	0	0
Proceeds from issuance of common stock upon exercise of stock options	2,013	5,563	7,840
Taxes remitted on restricted stock units vested	0	0	(1,488)
Excess tax benefit from exercise of stock options and vesting of restricted stock units	0	7,468	7,102
Net cash provided by financing activities	573,000	13,031	13,454
Effect of foreign exchange rate changes on cash and cash equivalents	(1,911)	1,146	(881)
NET INCREASE IN CASH AND CASH EQUIVALENTS	173,964	39,594	11,220
CASH AND CASH EQUIVALENTS—Beginning of period	263,176	223,582	212,362
CASH AND CASH EQUIVALENTS—End of period	437,140	263,176	223,582
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes, net of tax refunds	4,744	3,700	3,907
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Accruals for purchase of property and equipment	1,508	1,376	882
Accruals for capitalized software development costs	$ 189	$ 171	$ 0

The Company and Summary of Significant Accounting Policies and Estimates

12 Months Ended

Jul. 31, 2018

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

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, enables new insights into data that can improve business decision making and supports digital sales, service and claims experiences for policyholders, agents, and other key stakeholders. The Company’s customers are primarily property and casualty insurance carriers.

Public Offerings

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. Concurrently, the Company completed a sale of $400.0 million aggregate principal amount of 1.25% Convertible Senior Notes due 2025 (the “Convertible Senior Notes”), including amounts sold in connection with the underwriters’ exercise in full of their option to purchase additional Convertible Senior Notes. Net of offering expenses and underwriting discounts (“issuance costs”), the Company received net proceeds of approximately $220.9 million related to the common stock offering and $387.2 million related to the convertible note offering.

Basis of Presentation and Consolidation

Our consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Guidewire Software, Inc. and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation.

Restatement of Annual Consolidated Financial Statements

On April 25, 2019, the Company identified certain errors in its consolidated financial statements as of and for the fiscal years ended July 31, 2018 (“FY18”) and 2017 (“FY17”) related to a misapplication of the vendor specific objective evidence (“VSOE”) provisions of the prior revenue recognition guidance applicable to certain customer contracts under Accounting Standards Codification (“ASC”) 605 (the “VSOE error”).

The misapplication of VSOE provisions of ASC 605 related to a subset of contracts that had been amended by the Company and its customers in FY18 and FY17. Specifically, those amended contracts resulted in the customer being simultaneously committed to both the software license and maintenance for one year. Under ASC 605, the misapplication impacts the timing of license revenue recognition, as license revenue should have been recognized ratably over the one-year extension rather than upfront upon amendment of the contracts. The total amount of revenue to be recognized under ASC 605 was unaffected. The impact of this VSOE error is a decrease in license and other revenue of $6.8 million and $4.8 million for FY18 and FY17, respectively.

The Company is also correcting the previously filed consolidated financial statements as of and for the year ended July 31, 2018 in this Form-10-K/A for other errors related to professional services arrangements (the “other corrections”). These other corrections were deemed immaterial when they were originally identified. These other corrections include a decrease in professional services revenue of $1.4 million and an increase in cost of revenue - services of $0.1 million in FY18. In addition to correcting the errors discussed above, the Company is also correcting the provision for income taxes to reflect the impact of the VSOE error and other corrections (together with the tax correction, the “adjustments” or the “restatement”).

The table below presents the impact of the adjustments on the Company’s consolidated statement of operations for FY18 and FY17 (in thousands, except per share data):



	For the year ended July 31, 2018									For the year ended July 31, 2017
	As Previously Reported			Adjustments			As Restated			As Previously Reported		Adjustments			As Restated
Revenue:
License and other	$	315,776		$	(6,769	)	$	309,007		$	271,462	$	(4,751	)	$	266,711
Maintenance	77,337			—			77,337			68,643		—			68,643
Services	267,954			(1,449		)	266,505			174,179		—			174,179
Total revenue	661,067			(8,218		)	652,849			514,284		(4,751		)	509,533
Cost of revenue	296,707			76			296,783			191,559		—			191,559
Gross profit	364,360			(8,294		)	356,066			322,725		(4,751		)	317,974
Total operating expenses	371,690			—			371,690			296,113		—			296,113
Loss from operations	(7,330		)	(8,294		)	(15,624		)	26,612		(4,751		)	21,861
Other income (expense), net	7,348			—			7,348			6,665		—			6,665
Provision for income taxes	19,683			(1,216		)	18,467			12,053		(1,599		)	10,454
Net income (loss)	$	(19,665	)	$	(7,078	)	$	(26,743	)	$	21,224	$	(3,152	)	$	18,072
Net income (loss) per share:
Basic	$	(0.25	)	$	(0.09	)	$	(0.34	)	$	0.29	$	(0.04	)	$	0.24
Diluted	$	(0.25	)	$	(0.09	)	$	(0.34	)	$	0.28	$	(0.04	)	$	0.24

The table below presents the impact of the adjustments on the Company’s consolidated statement of operations for the three months ended July 31, 2018 and 2017 (in thousands, except per share data):



	For the three months ended July 31, 2018									For the three months ended July 31, 2017
	As Previously Reported			Adjustments			As Restated			As Previously Reported		Adjustments			As Restated
	(unaudited)
Revenue:
License and other	$	151,103		$	(7,406	)	$	143,697		$	109,695	$	(4,751	)	$	104,944
Maintenance	20,548			—			20,548			18,671		—			18,671
Services	76,988			(973		)	76,015			52,734		—			52,734
Total revenue	248,639			(8,379		)	240,260			181,100		(4,751		)	176,349
Cost of revenue	91,723			(1,243		)	90,480			57,261		—			57,261
Gross profit	156,916			(7,136		)	149,780			123,839		(4,751		)	119,088
Total operating expenses	101,679			—			101,679			82,791		—			82,791
Loss from operations	55,237			(7,136		)	48,101			41,048		(4,751		)	36,297
Other income (expense), net	1,300			—			1,300			2,720		—			2,720
Provision for income taxes	(26,889		)	17,513			(9,376		)	16,841		(1,599		)	15,242
Net income (loss)	83,426			(24,649		)	58,777			26,927		(3,152		)	23,775
Net income (loss) per share:
Basic	$	1.04		$	(0.31	)	$	0.73		$	0.36	$	(0.04	)	$	0.32
Diluted	$	1.02		$	(0.30	)	$	0.72		$	0.36	$	(0.04	)	$	0.31

The impact of the restatement on the consolidated balance sheet as of July 31, 2018 included increases in deferred revenue, current, and deferred tax assets, net, of $13.0 million and $2.9 million, respectively, and decreases in retained earnings and prepaid expenses and other current assets of $8.5 million and less than $0.1 million, respectively. The impact of the adjustments on the consolidated balance sheet as of July 31, 2017 included an increase in deferred revenue, current of $4.8 million, and decreases in additional paid-in capital and retained earnings of $1.6 million and $3.2 million, respectively. The tax impact of the adjustments resulted in an increase of $1.6 million in cash flows provided by operating activities and a corresponding decrease in cash flow provided by financing activities for FY17.

Additionally, the impact of the restatement was reflected as appropriate in the Statements of Comprehensive Income (Loss), Statements of Shareholders’ Equity, and related footnotes.

Immaterial Revisions to Interim Condensed Consolidated Financial Statements

From a quarterly perspective, the impact of the adjustments was immaterial to the interim condensed consolidated financial statements as of and for the quarters ended October 31, 2017, January 31, 2018, and April 30, 2018 and the related year-to-date periods previously filed on Form 10-Q for those respective periods. There was no impact on the quarters ended October 31, 2016, January 31, 2017, and April 30, 2017. The table below presents the impact of the adjustments on the quarterly condensed consolidated statement of operations for each of the interim quarters during the year ended July 31, 2018 (in thousands, except per share data):



	3 Months Ended October 31, 2017						3 Months Ended January 31, 2018						3 Months Ended April 30, 2018
	As Previously Reported			As Revised			As Previously Reported			As Revised			As Previously Reported			As Revised
	(unaudited)
Revenue:
License and other	$	30,093		$	32,136		$	84,221		$	80,782		$	50,359		$	52,392
Maintenance	18,930			18,930			19,110			19,110			18,749			18,749
Services	59,148			59,148			60,457			60,334			71,361			71,008
Total revenue	108,171			110,214			163,788			160,226			140,469			142,149
Cost of revenue	62,894			63,106			67,769			67,516			74,321			75,681
Gross profit	45,277			47,108			96,019			92,710			66,148			66,468
Total operating expenses	77,992			77,992			96,684			96,684			95,335			95,335
Income from operations	(32,715		)	(30,884		)	(665		)	(3,974		)	(29,187		)	(28,867		)
Other income (expense), net	1,646			1,646			3,224			3,224			1,178			1,178
Provision for income taxes	(22,155		)	(26,488		)	48,114			50,870			20,613			3,461
Net income (loss)	$	(8,914	)	$	(2,750	)	$	(45,555	)	$	(51,620	)	$	(48,622	)	$	(31,150	)
Net income (loss) per share:
Basic	$	(0.12	)	$	(0.04	)	$	(0.59	)	$	(0.67	)	$	(0.62	)	$	(0.40	)
Diluted	$	(0.12	)	$	(0.04	)	$	(0.59	)	$	(0.67	)	$	(0.62	)	$	(0.40	)

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with U.S. 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, investments and acquired assets and assumed liabilities including deferred revenue, valuation of goodwill and intangible assets, determination of 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.

Reclassification

Certain prior period balances have been reclassified to conform to the current period presentation in the Company’s consolidated financial statements and the accompanying notes.

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 consolidated statements of stockholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are recorded as other income (expense) in the 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 investments are 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. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related 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		3 years
Leasehold improvements		Shorter of the lease term or estimated useful life

Software Development Costs

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. These capitalized costs are amortized to expense over the estimated useful lives of the related assets, generally estimated to be three 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 consolidated statements of operations. Capitalized software development costs are recorded in property and equipment on the Company’s consolidated balance sheets.

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 and liabilities assumed, whichever comes first, subsequent adjustments, if any, are recorded to the Company’s consolidated statements of operations.

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 amounts 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 value of the assets over the estimated fair value of the assets. The Company has not written down any of its long-lived assets as a result of impairment during any of the periods presented.

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 a 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 the Company’s single 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 any of 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 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 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 in additional paid in capital.

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 balance sheet are in excess of amounts that are insured by the Federal Deposit Insurance Corporation (“FDIC”).

No customer individually accounted for 10% or more of the Company’s revenue for the years ended July 31, 2018, 2017 and 2016. As of July 31, 2018, no customer accounted for 10% or more of the Company’s total accounts receivable. As of July 31, 2017, one customer individually accounted for 11% of the Company’s total accounts receivable.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at invoiced amounts and do not bear interest. The Company does not require collateral, performs ongoing credit evaluations of its customers and provides for expected losses. 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 enters into arrangements to deliver multiple products or services (multiple-elements). For a substantial majority of its sales, the Company applies software revenue recognition rules and allocates the total revenue among elements based on vendor-specific objective evidence (“VSOE”) of the fair value of each element. The Company recognizes revenue on a net basis excluding indirect taxes, such as sales tax and value added tax, collected from customers and remitted to government authorities.

Revenue is derived from three sources:


(i)	License fees, related to term (or time-based) licenses, cloud-based subscriptions (also referred to as “subscriptions”), and perpetual software licenses;


(ii)	Maintenance fees associated with term or perpetual licenses relate to email and phone support, bug fixes and unspecified software updates, and upgrades released when, and if, available during the maintenance term; and


(iii)	Services fees from professional services relate to implementation of the Company’s software, reimbursable travel, and training provided to our customers.

Revenue is recognized when all of the following criteria are met:


•	Persuasive evidence of an arrangement exists. Evidence of an arrangement consists of a written contract signed by both the customer and management prior to the end of the period.


•	Delivery or performance has occurred. The Company’s software is delivered electronically to the customer. Delivery is considered to have occurred when the Company provides the customer access to the software along with login credentials.

•

Fees are fixed or determinable. The Company assesses whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. Fees from term licenses are invoiced in advance in annual or quarterly installments over the term of the agreement beginning on the effective date of the license and represent extended payment terms. A significant majority are invoiced annually. As a result, term license fees are not considered to be fixed and determinable until they become due or payment is received. Perpetual license fees are generally due between 30 and 60 days from delivery of software. We offer extended payment terms in limited cases.

•

Collectability is probable or reasonably assured. Collectability is assessed on a customer-by-customer basis, based primarily on creditworthiness as determined by credit checks and analysis, as well as customer payment history. Payment terms generally range from 30 to 90 days from invoice date. If it is determined prior to revenue recognition that collection of an arrangement fee is not probable, revenue is deferred until collection becomes probable or reasonably assured, or cash is collected, assuming all other revenue recognition criteria are satisfied.

VSOE of fair value does not exist for the Company’s software licenses; therefore, the Company allocates revenue to software licenses using the residual method. Under the residual method, the amount recognized for license fees is the difference between the total fixed and determinable fees and the VSOE of fair value for the undelivered elements under the arrangement.

The VSOE of fair value for elements of an arrangement is based upon the normal pricing and discounting practices for those elements when sold separately. VSOE of fair value for maintenance is established using the stated maintenance renewal rate in the customer’s contract. For term licenses with duration of one year or less, no VSOE of fair value for maintenance exists. VSOE of fair value for services is established if a substantial majority of historical stand-alone selling prices for a service fall within a reasonably narrow price range.

If the undelivered elements are all service elements and VSOE of fair value does not exist for one or more service element, the total arrangement fee is recognized ratably over the longest service period starting at software delivery, assuming all the related services have been made available to the customer.

The Company’s subscriptions are recognized ratably over the term of the arrangement typically upon provisioning the products.

As noted above, the Company generally invoices fees for licenses and maintenance to its customers in annual or, in certain cases, quarterly installments payable in advance. The fees related to maintenance are recognized over the period the maintenance is provided.

Substantially all of the Company’s professional services engagements are billed on a time and materials basis and are typically not considered essential to the functionality of the software. The related revenue and costs are recognized in the period incurred. In select situations, the Company will contract our professional services on a fixed fee basis, where we generally recognize services revenue on a proportional performance basis as the performance obligations are completed.

When professional services are sold with a license arrangement the Company evaluates whether those services are essential to the functionality of the software. In the limited cases where professional services are deemed to be essential to the functionality of the software and separate accounting for the services is not permitted, the arrangement is accounted for using contract accounting until the essential services are complete.

Deferred revenue represent amounts, which are billed to or collected from creditworthy customers for which one or more of the revenue recognition criteria have not been met. The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancellable arrangements.

Sales Commissions

Sales commissions are recognized as an expense when earned by the sales representative, generally occurring at the time the customer order is signed. Substantially all of the effort by the sales force is expended through the time of closing the sale, with limited to no involvement thereafter.

Warranties

The Company generally provides a warranty for its software products and services to its customers for periods ranging from 3 to 12 months. The Company’s software products are generally warranted to be free of defects in materials and workmanship under normal use and to substantially perform as described in published documentation. The Company’s services are generally warranted to be performed in a professional manner and to materially conform to the specifications set forth in the related customer contract. In the event there is a failure of such warranties, the Company generally will correct the problem or provide a reasonable workaround or replacement product. If the Company cannot correct the problem or provide a workaround or replacement product, then the customer’s remedy is generally limited to refund of the fees paid for the nonconforming product or services. Warranty expense has been insignificant to date.

Advertising Costs

Advertising costs are expensed as incurred and amounts incurred were not material during the years ended July 31, 2018, 2017 and 2016.

Stock-Based Compensation

The Company accounts for stock-based compensation using the fair value method, which requires the Company to measure the 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 equal 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 which 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 a performance condition, 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 in this simulation require judgments and estimates. Changes in these inputs and assumptions could affect the measurement of the estimated fair value and the related compensation expense related to these stock options and stock awards. Compensation expense associated with these 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 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 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 the 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, as well as 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, and acquisition-related expenses.

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

Recently Adopted Accounting Pronouncements

Compensation, Stock Compensation (ASC 718): Improvements to Employee Share-Based Payment Accounting (As Restated)

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation, Stock Compensation (ASC 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted ASU 2016-09 on August 1, 2017. As a result of this adoption, previously unrecognized tax benefits of $87.4 million were recorded as deferred tax assets net of valuation allowance of $0.6 million, on a modified retrospective approach with a net cumulative effect adjustment to opening retained earnings of $86.8 million. The Company elected to account for forfeitures based on actuals, as they occur, and using a modified retrospective transition method, recorded a cumulative-effect adjustment of $1.0 million to decrease the Company’s opening retained earnings balance as of the adoption date. For the year ended July 31, 2018, the provision for income taxes included tax benefits of $9.1 million related to the tax effects of settled stock-based awards.

Recent Accounting Pronouncements Not Yet Adopted

Revenue from Contracts with Customers (ASC 606): Revenue Recognition (As Restated)

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606) (“ASU 2014-09”), which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in ASC 605, Revenue Recognition, and most industry-specific guidance.

In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of this standard. As a result, ASU 2014-09 and related amendments will be effective for the Company for its fiscal year beginning August 1, 2018, including interim periods within that fiscal year. The FASB issued ASU No. 2016-08, Principal Versus Agent Consideration (or Reporting Revenue Gross versus Net) in March 2016, ASU No. 2016-10, Identifying Performance Obligations and Licensing in April 2016, and ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients in May 2016. These amendments clarified certain aspects of ASU 2014-09 and have the same effective date as ASU 2014-09.

The Company will adopt these ASUs (collectively, ASC 606) on August 1, 2018 under the Modified Retrospective Method.

The Company has evaluated the potential impact of ASC 606 on its revenue recognition policy and practices and has concluded that ASC 606 will impact the pattern of its revenue recognition associated with its software licenses and, to a lesser extent, cloud-based subscriptions. The Company’s term licenses require payments to be made annually or quarterly in advance and are subject to extended payment terms. Currently under ASC 605, revenue associated with term software licenses is recognized in the earlier of the period in which the payments are due or are actually made. Under ASC 606, the Company will be required to recognize term license revenue associated with such payments not when they 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. As a result, under ASC 606, contractually obligated payments allocated to the software license under a term license that the Company reasonably expects to collect would be recognized upon delivery. In conjunction with its evaluation of this new standard, the Company began revising its contracting practices and amending existing agreements with certain customers primarily by shortening the initial, non-refundable term of its licenses. Since fiscal year 2017, a majority of new term license contracts have a two-year initial term with subsequent one-year auto renewal options.

The Company currently anticipates that the impact of ASC 606 on its cloud-based subscriptions, will be more limited than for term license arrangements and will impact, primarily, those cloud-based subscriptions that contractually provide for increasing annual subscription payments during the term of the arrangement. Under ASC 606, revenue on these types of cloud-based arrangements will be recognized ratably throughout the committed term.

While the Company is still evaluating the impact of the change to the timing of revenue recognition, the Company expects to have a balance sheet impact at the date of adoption of approximately $45 million recorded as a reduction primarily to deferred revenue and an increase to un-billed contract revenue. Another significant provision under ASC 606 includes the capitalization and amortization of costs associated with obtaining a contract, most significantly sales commissions. The amortization period for the Company's deferred costs will be recognized over the estimated period of benefit, which is estimated to be five years. The Company expects there to be a balance sheet impact at the date of adoption recognizing the deferred sales commission capitalization costs of approximately $13 million. We will continue to monitor additional changes, modifications, clarifications or interpretations of ASC 606, which may impact current expectations.

Leases (ASC 842): Accounting for Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842) (“ASU 2016-02”), 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. ASU 2016-02 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. While the Company is currently evaluating the impact this update will have on its consolidated financial statements, it expects ASU 2016-02 to have a significant impact on recorded assets and liabilities.

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

In January 2016, the FASB issued ASU 2016-01, Financial Instruments (ASC 825) (“ASU 2016-01”), which impacts certain aspects of recognition, measurement, 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 standard will be effective for the Company beginning August 1, 2018. The Company does not expect the impact this update will have on its strategic equity investment in a privately-held company to be significant.

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.

Fair Value of Financial Instruments

12 Months Ended

Jul. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Available-for-sale investments within cash equivalents and investments consist of the following:



	July 31, 2018
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(in thousands)
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



	July 31, 2017
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(in thousands)
U.S. Government agency securities	$	22,662	$	—	$	(66	)	$	22,596
Commercial paper	147,371		2		(34		)	147,339
Corporate bonds	258,334		157		(146		)	258,345
U.S. Government bonds	67,164		—		(185		)	66,979
Certificate of deposit	27,498		29		—			27,527
Money market funds	96,313		—		—			96,313
Total	$	619,342	$	188	$	(431	)	$	619,099

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



	July 31, 2018
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(in thousands)
U.S. Government agency securities	$	6,974	$	(24	)	$	1,999	$	(3	)	$	8,973	$	(27	)
Commercial paper	144,342		(141		)	—		—			144,342		(141		)
Corporate bonds	307,590		(755		)	13,497		(8		)	321,087		(763		)
U. S. Government bonds	65,013		(11		)	19,948		(44		)	84,961		(55		)
Foreign government bonds	766		(1		)	—		—			766		(1		)
Certificate of deposit	23,734		(8		)	—		—			23,734		(8		)
Total	$	548,419	$	(940	)	$	35,444	$	(55	)	$	583,863	$	(995	)

As of July 31, 2018, the Company had 188 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 July 31, 2018 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 consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive 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:



	July 31, 2018
	Less Than 12 Months		12 to 24 Months		Total
	(in thousands)
U.S. Government agency securities	$	1,999	$	6,974	$	8,973
Commercial paper	465,030		6,799		471,829
Corporate bonds	280,249		151,291		431,540
U.S. Government bonds	89,931		—		89,931
Foreign government bonds	4,448		4,864		9,312
Certificate of deposit	61,006		21,024		82,030
Money market funds	90,766		—		90,766
Total	$	993,429	$	190,952	$	1,184,381

Fair Value Measurement

The Company classifies cash equivalents, short-term investments and long-term investments within Level 1 or Level 2 in the fair value hierarchy because the Company uses quoted market prices or alternative pricing sources and models utilizing observable market inputs to determine their fair value.

Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

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

Level 2 - Inputs other than quoted prices that are observable but do not qualify as a Level 1 quoted price, 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.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying value of the Company’s accounts receivable, accounts payable and accrued liabilities approximates their fair value due to the short-term nature of these instruments.

The Company bases the fair value of its Level 1 financial instruments, which are in active markets, using quoted market prices for identical instruments.

The Company obtains the fair value of its Level 2 financial instruments, which are not in active markets, from a third-party professional pricing service using quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. The Company’s professional pricing service gathers observable inputs for all of its fixed income securities from a variety of industry data providers (e.g. large custodial institutions) and other third-party sources. Once the observable inputs are gathered, all data points are considered and an average price is determined.

The Company validates the quoted market prices provided by its primary pricing service by comparing their assessment of the fair values of our Level 2 investment portfolio balance against the fair values of its Level 2 investment portfolio balance provided by its investment managers. The Company’s investment managers use similar techniques to its professional pricing service to derive pricing as described above.

The Company did not have any Level 3 financial assets or liabilities as of July 31, 2018, or 2017.

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:



	July 31, 2018
	Level 1		Level 2		Level 3		Total
	(in thousands)
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 investments	—		190,952		—		190,952
Total	$	90,766	$	1,093,615	$	—	$	1,184,381



	July 31, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash and cash equivalents:
Commercial paper	$	—	$	98,174	$	—	$	98,174
Money market funds	96,313		—		—		96,313
Total Cash equivalents	96,313		98,174		—		194,487
Short-term investments:
U.S. Government agency securities	—		20,583		—		20,583
Commercial paper	—		49,165		—		49,165
U. S. Government bonds	—		47,105		—		47,105
Foreign government bonds	—		—		—		—
Corporate bonds	—		170,654		—		170,654
Certificate of deposit	—		22,520		—		22,520
Total Short-term investments	—		310,027		—		310,027
Long-term investments:
U.S. Government agency securities	—		2,013		—		2,013
Certificate of deposit	—		5,007		—		5,007
Corporate bonds	—		87,691		—		87,691
U.S. Government bonds	—		19,874		—		19,874
Foreign government bonds	—		—		—		—
Total Long-term investments	—		114,585		—		114,585
Total	$	96,313	$	522,786	$	—	$	619,099

Convertible Senior Notes

The carrying value of the Convertible Senior Notes was $310.5 million before consideration of issuance costs, which approximates their fair value at July 31, 2018. In accounting for the issuance of the notes, the Company separated the 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 conversion 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 notes as a whole.

The Company estimates the fair value of the Convertible Senior Notes using commonly accepted valuation methodologies and market-based risk measurements that are indirectly observable, such as credit risk (Level 2). The Company carries the Convertible Senior Notes at face value less unamortized debt discount and issuance costs on its consolidated balance sheet, and presents the fair value for required disclosure purposes only. 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

Acquisition (Notes)

12 Months Ended

Jul. 31, 2018

Business Combinations [Abstract]

Acquisition

Acquisitions

The Company’s acquisitions during fiscal years 2018 and 2017 were all accounted for as business combinations. U.S. GAAP requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair value of the assets acquired and the liabilities assumed. The Company utilized the discounted cash flow methodology and the profit allocation methodology under the income approach to estimate the fair values of the intangible assets. The acquired intangible assets are amortized over their estimated useful lives. The Company used the cost build-up approach to estimate the fair value of deferred revenue by estimating the costs related to fulfilling the obligation plus an additional markup for an assumed operating margin to reflect the profit a third party would expect to make on the costs incurred. These fair value measurements were based on significant inputs that were not observable in the market and thus represents a Level 3 measurement. The valuation models were based on estimates of future operating projections of the acquired business and rights to sell new products containing the acquired technology as well as judgments on the discount rates used and other variables. The Company developed forecasts based on a number of factors including future revenue and operating cost projections, a discount rate that is representative of the weighted average cost of capital, in addition to royalty and long-term sustainable growth rates based on market analysis.

Fiscal Year 2018

Cyence Acquisition

On November 1, 2017, the Company completed its acquisition of Cyence, Inc. (“Cyence”) for an aggregate consideration of approximately $260.3 million, including approximately 146.6 million in cash, and equity consideration valued at approximately $113.7 million of newly issued Guidewire common stock and options, net of certain adjustments including a net working capital adjustment (the “Cyence Acquisition”). Through the acquisition, the Company gained a cloud-based data listening and risk analytics technology offering for the property and casualty insurance (“P&C”) industry which enables underwriting new and evolving risks, such as cyber risk. The results of Cyence’s operations have been included in the Company’s results of operations since November 1, 2017, the date of acquisition.

As part of the acquisition, the Company assumed certain Cyence compensation agreements, including RSAs and stock options with an estimated fair value of $37.6 million. Based on the service period related to the period prior to the acquisition date, $18.2 million was allocated to the purchase price, and $19.4 million relating to post-acquisition services will be recorded as operating expenses over the remaining requisite service periods. RSAs were valued based on the November 1, 2017 grant date value, and the estimated fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model.

The adjustments reflected herein to determine the purchase consideration are preliminary and may change as the Company finalizes these adjustments during the measurement period based on new information as it becomes available. The measurement period will end no later than October 31, 2018. The preliminary purchase consideration is as follows (in thousands):




Cash consideration paid at close	$	146,651
Equity issued to shareholders	102,493
Issuance of replacement awards	11,205
Total preliminary purchase consideration	$	260,349

In conjunction with the preliminary purchase price allocation, the Company determined that Cyence’s separately identifiable intangible assets were developed technology, customer contracts and related relationships, order backlog, and trade names. The valuation method used was in accordance with the Company’s policy, practice, and experience as described above. The valuation models were based on estimates of future operating projections of Cyence and rights to sell new products containing the acquired technology as well as judgments on the discount rates used and other variables. The Company developed forecasts based on a number of factors including future revenue and operating cost projections, a discount rate that is representative of the weighted average cost of capital, in addition to royalty and long-term sustainable growth rates based on a market analysis. The Company amortizes the acquired intangibles over their estimated useful lives as set forth in the table below.

The allocation of purchase price is preliminary pending the final valuation of intangible and tangible assets acquired and liabilities assumed, certain acquired deferred tax assets and completion of certain statutory tax filing requirements and is therefore subject to potential future measurement period adjustments. The preliminary allocation of the purchase consideration is as follows:



	Preliminary Purchase Price Allocation		Estimated Useful Lives
	(in thousands)		(in years)
Acquired assets, net of assumed liabilities	$	9,620
Developed technology	28,400		5
Customer contracts and related relationships	17,700		5
Order backlog	3,200		2
Trademarks	2,500		7
Goodwill	198,929
Total preliminary purchase consideration	$	260,349

The goodwill of $198.9 million arising from the Cyence Acquisition consists largely of the acquired workforce and the opportunity to expand the Company’s customer base. The goodwill recognized is not expected to be deductible for income tax purposes.

Cyence’s post-acquisition results of operations were included in the Company’s results of operations. Since the acquisition date of November 1, 2017 through July 31, 2018, total revenue and net loss of Cyence was $11.0 million and $20.3 million, respectively. The Company incurred $5.2 million of total acquisition-related costs that were recognized in general and administrative expenses in fiscal year 2018.

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information presents the combined results of operations for the Company and Cyence for the fiscal years ended July 31, 2018 and 2017, after giving effect to the Cyence Acquisition as if it had occurred on August 1, 2016. The unaudited pro forma financial information includes adjustments to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The unaudited pro forma financial information presented includes the business combination accounting effects resulting from the acquisition, including adjustments for the amortization of intangible assets, stock-based compensation, deferred revenue, and transaction costs on August 1, 2016 with a corresponding reduction of these amounts in the period originally recognized.

The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the results of operations that would have been realized if the Cyence acquisition had been completed on August 1, 2016, nor does it purport to project the results of operations of the combined company in future periods. The unaudited pro forma financial information does not give effect to any anticipated integration costs related to the acquired company. Consequently, actual results will differ from the unaudited pro forma financial information.

The unaudited pro forma financial information is as follows (in thousands):



	Fiscal years ended July 31,
	2018 As Restated			2017 As Restated
Pro forma revenue	$	657,781		$	519,351
Pro forma net loss	$	(29,696	)	$	(12,899	)
Pro forma net loss per share -- basic and diluted	$	(0.38	)	$	(0.17	)

The pro forma revenue and net loss reflects material, nonrecurring adjustments, such as transaction, transition and integration-related charges (including legal, accounting and other professional fees, and retention bonuses) that resulted from the acquisition.

Fiscal Year 2017

ISCS Acquisition

On February 16, 2017, the Company completed its acquisition of ISCS, Inc., a privately-held company that provides a cloud-based, all-in-one system for policy administration, billing and claims management to P&C insurers (“ISCS Acquisition”). The purchase price of the ISCS Acquisition was $160 million, subject to certain preliminary adjustments including a net working capital adjustment, which resulted in cash consideration paid of $154.9 million. The fair value of all assets acquired and liabilities assumed was finalized in the fiscal quarter ended April 30, 2018. A portion of the consideration has been placed into an escrow account as partial security to satisfy any potential claims, including the indemnification liability for state sales taxes. The ISCS Acquisition is intended to enhance the Company's ability to serve those P&C insurers that prefer a cloud-based, all-in-one platform that offers policy, billing, and claims management functionality. Total acquisition costs of $1.1 million were expensed as incurred, and recorded as general and administrative expenses in the accompanying consolidated statement of operations in fiscal year 2017. The results of ISCS’ operations have been included in the Company’s results of operations since February 16, 2017, the acquisition date.

In connection with the ISCS Acquisition, the Company recorded an indemnification asset of $1.6 million, which represents the selling security holders’ obligation under the Agreement and Plan of Merger to indemnify the Company for unpaid state sales taxes. The indemnification asset was recognized on the same basis as the corresponding liability, which is based on its estimated fair value as of the date of acquisition.

The ISCS Acquisition was accounted for as a business combination. As part of the purchase price allocation, the Company determined that ISCS’s separately identifiable intangible assets were developed technology, customer contracts and related relationships, and order backlog. The valuation method used was in accordance with the Company’s policy, practice, and experience as described above. The allocation of the purchase consideration was as follows:



	Total Purchase Price Allocation		Estimated Useful Lives
	(in thousands)		(in years)
Acquired assets, net of assumed liabilities	$	4,530
Developed technology	43,300		4
Customer contracts and related relationships	7,000		9
Order backlog	3,500		4
Deferred tax assets	171
Goodwill	96,431
Total preliminary purchase price	$	154,932

The goodwill of $96.4 million arising from the ISCS Acquisition consists largely of the acquired workforce, expected synergies and the opportunity to expand the Company’s customer base. The goodwill recognized is expected to be deductible for income tax purposes.

FirstBest Acquisition

On August 31, 2016, the Company acquired all of the outstanding equity interests of FirstBest Systems, Inc. (the “FirstBest Acquisition”), a privately-held provider of underwriting management systems and related applications for P&C insurers. Total consideration for the FirstBest Acquisition was $37.8 million which included amounts placed into escrow to cover future potential claims. The fair value of all assets acquired and liabilities assumed was finalized in the fiscal quarter ended October 31, 2017. The Company believes that the FirstBest Acquisition will enable the expansion of its insurance platform by providing insurers in the U.S. and Canada writing complex commercial, specialty, and workers’ compensation lines greater support for their risk assessment and decision-making processes. Total acquisition costs of $1.2 million were expensed as incurred and recorded as general and administrative expenses in the accompanying consolidated statement of operations, of which, $0.9 million were expensed as incurred during the year ended July 31, 2017 and $0.3 million were expensed as incurred during the year ended July 31, 2016.

The FirstBest Acquisition was accounted for as a business combination. As part of the purchase price allocation, the Company determined that FirstBest’s separately identifiable intangible assets were developed technology, customer contracts and related relationships, and order backlog. The valuation method used was in accordance with the Company’s policy, practice and experience as described above. The allocation of the purchase consideration was as follows:



	Total Purchase Price Allocation		Estimated Useful Lives
	(in thousands)		(in years)
Acquired assets, net of assumed liabilities	$	2,518
Developed technology	8,000		5
Customer contracts and related relationships	6,500		9
Order backlog	900		3
Deferred tax assets, net	4,406
Goodwill	15,434
Total purchase price	$	37,758

The goodwill of $15.4 million arising from the acquisition consists largely of the acquired workforce, expected synergies and the opportunity to expand the Company’s customer base. The goodwill recognized is not expected to be deductible for income tax purposes.

Balance Sheet Components

12 Months Ended

Jul. 31, 2018

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Property and Equipment, net

Property and equipment consist of the following:



	July 31, 2018			July 31, 2017
	(in thousands)
Computer hardware	$	24,879		$	21,408
Purchased software	4,664			3,855
Capitalized software development costs	3,978			1,065
Furniture and fixtures	4,217			3,253
Leasehold improvements	10,751			8,251
Total property and equipment	48,489			37,832
Less accumulated depreciation	(29,894		)	(23,456		)
Property and equipment, net	$	18,595		$	14,376

As of July 31, 2018 and 2017, no property and equipment was pledged as collateral against borrowings. Amortization of leasehold improvements is included in depreciation expense. Depreciation expense was $7.7 million, $6.6 million and $6.5 million for the years ended July 31, 2018, 2017 and 2016, respectively.

During the third fiscal quarter of fiscal year 2017, the Company began to capitalize software development costs for technology applications that the Company will offer solely as cloud-based subscriptions. The amount capitalized as of July 31, 2018 and 2017 was $4.0 million and $1.1 million, respectively, primarily comprised of compensation and related headcount costs for employees who were directly associated with the software development projects. During the fiscal year ended July 31, 2018, the Company began to amortize the technology applications that were ready for their intended use. The Company recognized approximately $0.4 million in amortization expense in cost of revenue, license and other on the accompanying consolidated statements of operations during the fiscal year ended July 31, 2018. There was no such amortization during the fiscal years ended July 31, 2017 and 2016.

Other Assets

The Company’s other assets of $22.5 million and $20.1 million at July 31, 2018 and 2017, respectively, include the strategic equity investment in a privately-held company, which was accounted for using the cost method of accounting. Strategic investments are non-marketable equity securities, in which the Company does not have a controlling interest or the ability to exert significant influence. These investments do not have a readily determinable market value. Under the cost method of accounting, the non-marketable securities are carried at cost and are adjusted only for other-than temporary impairments, certain distributions and additional investments. Accordingly, if the Company were to disclose the fair value of the investment, the fair value measurement would be Level 3 in the valuation hierarchy. The Company assesses the investment for impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable. As of July 31, 2018 and 2017, there were no indicators that the strategic equity investment with carrying value of $10.7 million was impaired.

Goodwill and Intangible Assets

Changes in the carrying amount of goodwill for the periods presented is as follows (in thousands):



Goodwill - July 31, 2016	$	30,080
FirstBest Acquisition	15,434
ISCS Acquisition	96,337
Goodwill - July 31, 2017	$	141,851
Cyence Acquisition	198,929
Changes in carrying value	97
Goodwill - July 31, 2018	$	340,877

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



	July 31, 2018						July 31, 2017
	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
	(in thousands)
Intangible assets:
Acquired technology	$	93,600	$	34,189	59,411		$	65,200	$	14,710	$	50,490
Customer contracts and related relationships	35,700		6,633		29,067		18,000		1,683		16,317
Partner relationships	200		52		148		200		30		170
Trademarks	2,500		268		2,232		—		—		—
Order backlog	8,700		3,904		4,796		5,500		1,162		4,338
Total	$	140,700	$	45,046	$	95,654	$	88,900	$	17,585	$	71,315

Amortization expense was $27.5 million, $12.1 million and $2.3 million during the years ended July 31, 2018, 2017 and 2016, respectively. The estimated future aggregate amortization expense for existing intangible assets as of July 31, 2018, based on their current useful lives, is as follows (in thousands):



Fiscal year ending July 31,
2019	$	29,112
2020	26,834
2021	19,965
2022	11,143
2023	3,799
Thereafter	4,801
Total future amortization expense	$	95,654

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts consists of the following (in thousands):



Allowance for Doubtful Accounts as of July 31, 2017	$	—
Charges to bad debt and revenue reserves	1,062
Write-offs, net	—
Allowance for Doubtful Accounts as of July 31, 2018	$	1,062

Accrued Employee Compensation

Accrued employee compensation consists of the following:



	July 31, 2018		July 31, 2017
	(in thousands)
Accrued bonuses	$	31,273	$	26,581
Accrued commission	7,287		5,228
Accrued vacation	13,132		10,873
Accrued salaries, payroll taxes and benefits	8,443		6,200
Total	$	60,135	$	48,882

Deferred Revenue

Deferred revenue, current and non-current, consists of the following:



	July 31, 2018 As Restated		July 31, 2017 As Restated
Deferred revenue, current:	(in thousands)
Deferred license and other revenue	$	53,755	$	25,769
Deferred maintenance revenue	52,010		46,562
Deferred services revenue	21,342		23,663
Total deferred revenue, current	$	127,107	$	95,994
Deferred revenue, non-current	23,758		19,892
Total	$	150,865	$	115,886

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss was as follows:



	Foreign Currency Items			Unrealized gain (loss) on available-for-sale securities			Total
	(in thousands)
Balance as of July 31, 2016	$	(6,809	)	$	216		$	(6,593	)
Foreign currency translation adjustments	1,179			(465		)	714
Unrealized loss on available-for-sale securities	—			(151		)	(151		)
Tax effect	—			234			234
Balance as of July 31, 2017	(5,630		)	(166		)	(5,796		)
Foreign currency translation adjustments	(1,567		)	(596		)	(2,163		)
Unrealized loss on available-for-sale securities	—			(22		)	(22		)
Tax effect	—			233			233
Balance as of July 31, 2018	$	(7,197	)	$	(551	)	$	(7,748	)

Net Income (Loss) per Share

12 Months Ended

Jul. 31, 2018

Earnings Per Share [Abstract]

Net Income (Loss) per Share

The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock and stock awards are considered to be common stock equivalents.

The following table sets forth the computation of the Company’s basic and diluted net income per share for the years ended July 31, 2018, 2017 and 2016:



	Fiscal years ended July 31,
	2018 As Restated			2017 As Restated		2016
	(in thousands, except share and per share amounts)
Numerator:
Net income (loss)	$	(26,743	)	$	18,072	$	14,976
Net income (loss) per share:
Basic	$	(0.34	)	$	0.24	$	0.21
Diluted	$	(0.34	)	$	0.24	$	0.20
Denominator:
Weighted average shares used in computing net income (loss) per share:
Basic	77,709,592			73,994,577		72,026,694
Weighted average effect of dilutive stock options	—			544,520		859,855
Weighted average effect of dilutive Stock Awards	—			789,246		879,411
Diluted	77,709,592			75,328,343		73,765,960

The following weighted shares outstanding of potential common stock were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been antidilutive:



	Fiscal years ended July 31,
	2018	2017	2016
Stock options to purchase common stock	597,476	24,128	77,737
Restricted Stock Awards	3,161,157	88,582	22,994

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 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. Since the Convertible Senior Notes were issued, the Company's weighted average common stock price has remained below the conversion price of the Convertible Senior Notes.

Convertible Senior Notes

12 Months Ended

Jul. 31, 2018

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 15 and September 15 of each year, beginning on 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 3 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 notice of redemption was provided. No sinking fund is provided for the 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 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:



	July 31, 2018
	(in thousands)
Principal	$	400,000
Less: unamortized debt discount and issuance costs
Unamortized debt discount	85,343
Debt issuance cost	9,529
Net carrying amount	$	305,128

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



	Fiscal Year Ended July 31, 2018
	(in thousands)
Contractual interest expense	$	1,903
Amortization of debt discount	4,134
Amortization of debt issuance costs	378
Total	$	6,415
Effective interest rate of the liability component	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 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

12 Months Ended

Jul. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

The Company’s contractual obligations and commitments as of July 31, 2018 are as follows:



	Lease Obligations ⁽¹⁾		Royalty Obligations⁽²⁾		Purchase Commitments ⁽³⁾		Long-Term Debt⁽⁴⁾		Total
Fiscal Year Ending July 31,	(in thousands)
2019	$	10,718	$	1,761	$	60,298	$	5,028	$	77,805
2020	10,713		698		8,181		5,000		24,592
2021	14,615		101		1,368		5,000		21,084
2022	13,295		—		253		5,000		18,548
2023	12,507		—		—		5,000		17,507
2024 and thereafter	85,156		—		—		410,000		495,156
Total	$	147,004	$	2,560	$	70,100	$	435,028	$	654,692


⁽¹⁾	Operating lease agreements primarily represent our obligations to make payments under our non-cancellable lease agreements for our corporate headquarters and worldwide offices through 2028.


⁽²⁾	Royalty obligations primarily represent our obligations under our non-cancellable agreements related to software used in certain revenue-generating agreements.


⁽³⁾	Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent commitments for which a penalty could be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement.


⁽⁴⁾	Long-term debt consists of principal and interest payments on the Company’s Convertible Senior Notes. The $400 million in principal will be due in March 2025.

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 terms of the various leases, was $8.7 million, $6.8 million and $5.7 million during the years ended July 31, 2018, 2017, and 2016, respectively.

In December 2017, the Company entered into a new lease agreement for its future headquarters facility. The lease term is expected to commence on December 1, 2018, for a period of 10.5 years. Total payments committed under the lease are $126.7 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 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. Accordingly, the Company has not recorded any accrual for claims as of July 31, 2018 and 2017. 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 License”). 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 July 31, 2018 and 2017. 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

12 Months Ended

Jul. 31, 2018

Stockholders' Equity and Stock-based Compensation [Abstract]

Stockholders' Equity and Stock-based Compensation

Stockholders’ Equity and Stock-Based Compensation

Equity Incentive Plans

On September 14, 2011, the Company’s Board of Directors adopted the 2011 Stock Plan (“2011 Plan”) for the purpose of granting equity-based incentive awards as compensation tools to motivate the Company’s workforce. The Company had initially reserved 7,500,000 shares of its common stock for the issuance of awards under the 2011 Plan. The 2011 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2013, by up to 5% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31. This number is subject to adjustment in the event of a stock split, stock dividend or other defined changes in the Company’s capitalization.

In addition, the Company has equity awards outstanding from its other equity incentive plans, the 2006 Stock Plan, the 2009 Stock Plan and the 2010 Restricted Stock Unit Plan, which were discontinued for the purposes of making new grants upon the adoption of the 2011 Plan.

The Company requires that employees sell a portion of the shares that they receive upon the vesting of RSUs in order to cover any required withholding taxes (“sell-to-cover”).

Stock-Based Compensation Expense

Stock-based compensation cost related to Stock Awards and stock options is included in the Company’s consolidated statements of operations as follows:



	Fiscal years ended July 31,
	2018		2017			2016
	(in thousands)
Total stock-based compensation	$	89,176	$	72,695		$	66,409
Net impact of deferred stock-based compensation	438		(901		)	(278		)
Total stock-based compensation expense	$	89,614	$	71,794		$	66,131

Stock-based compensation expense was charged to the following categories:
Cost of license and other revenue	$	1,002	$	373		$	433
Cost of maintenance revenue	1,886		1,694			1,491
Cost of services revenue	21,856		18,622			17,878
Research and development	25,440		18,123			15,555
Sales and marketing	18,387		16,663			15,090
General and administrative	21,043		16,319			15,684
Total stock-based compensation expense	89,614		71,794			66,131
Tax benefit from stock-based compensation	24,481		23,014			20,092
Total stock-based compensation expense, net of tax effect	$	65,133	$	48,780		$	46,039

As of July 31, 2018, total unrecognized stock-based compensation cost for our options and Stock Awards was as follows:



	Unrecognized Expense		Weighted Average Expected Recognition Period
	(in thousands)		(in years)
Stock Options	$	5,832	2.2
Stock Awards	152,037		2.2
	$	157,869

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		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value ⁽¹⁾
					(in thousands)
Balance as of July 31, 2015	2,882,674		$	42.65	$	170,222
Granted	1,586,192		54.99
Released	(1,408,746	)	41.21		$	78,763
Canceled	(332,396	)	46.71
Balance as of July 31, 2016	2,727,724		50.08		$	167,673
Granted	1,542,235		61.22
Released	(1,372,770	)	49.38		$	81,427
Canceled	(263,104	)	53.53
Balance as of July 31, 2017	2,634,085		56.62		$	190,076
Granted	1,814,084		79.65
Released	(1,260,758	)	56.92		$	103,957
Canceled	(255,256	)	63.66
Balance as of July 31, 2018	2,932,155		$	69.43	$	252,752
Expected to vest as of July 31, 2018	2,932,155		$	69.43	$	252,752


⁽¹⁾	Aggregate intrinsic value at each fiscal year end represents the total market value of Stock Awards at the Company’s closing stock price of $86.20, $72.16 and $61.47 on July 31, 2018, 2017 and 2016, 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 $19.1 million, $9.4 million and $6.9 million that were related to these performance-based and market-based stock awards in fiscal years 2018, 2017 and 2016, respectively.

Stock Options

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



	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, 2015	1,822,062		$	14.29	4.9	$	81,548
Granted	10,000		54.00
Exercised	(652,832	)	12.01			$	29,186
Canceled	(20,658	)	40.86
Balance as of July 31, 2016	1,158,572		15.45		4.0	$	53,316
Granted	—		—
Exercised	(594,936	)	9.35			$	30,636
Canceled	(8,000	)	2.74
Balance as of July 31, 2017	555,636		22.17		4.0	$	27,777
Granted⁽²⁾	137,057		10.23
Exercised	(150,924	)	13.32			$	10,710
Canceled	(4,705	)	40.05
Balance as of July 31, 2018	537,064		$	21.45	4.3	$	34,774
Vested and expected to vest as of July 31, 2018	537,064		$	21.45	4.3	$	34,774
Exercisable as of July 31, 2018	443,782		$	23.04	3.5	$	28,028


⁽¹⁾	Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $86.20, $72.16 and $61.47 on July 31, 2018, 2017 and 2016 and the exercise price of the option, respectively. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.


⁽²⁾	Represents options assumed through the Cyence acquisition on November 1, 2017.

Valuation of Awards

TSR PSUs

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



	Fiscal years ended July 31,
	2018	2017	2016
Expected term (in years)	2.88	2.66 - 2.88	*
Risk-free interest rate	1.44%	0.89% - 1.34%	*
Expected volatility of the Company	28%	30.2% - 31.5%	*
Average expected volatility of the peer companies in the S&P Index	34.7%	36.9% - 37.0%	*
Expected dividend yield	—%	—%	*

* There were no TSR PSUs granted during the fiscal year ended July 31, 2016.

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 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.

Stock Options

The per share fair value of each stock option was determined using the Black-Scholes option-pricing model with the following assumptions:



	Fiscal years ended July 31,
	2018	2017	2016
Expected life (in years)	1.27	*	4.9
Risk-free interest rate	1.48%	*	1.5%
Expected volatility	24.12%	*	38.8%
Expected dividend yield	—%	*	—%
Weighted average fair value of options granted	$67.90	*	$19.18

* There were no options granted during the fiscal year ended July 31, 2017.

Common Stock Reserved for Issuance

As of July 31, 2018 and 2017, 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, 80,611,698 and 75,007,625 shares of common stock were issued and outstanding, respectively. As of July 31, 2018 and 2017, the Company had reserved shares of common stock for future issuance as follows:



	July 31, 2018	July 31, 2017
Exercise of stock options to purchase common stock	537,064	555,636
Vesting of restricted stock units	2,932,155	2,634,085
Shares available for grant under stock plans	21,592,494	18,453,674
Total common stock reserved for issuance	25,061,713	21,643,395

Income Taxes

12 Months Ended

Jul. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

On December 22, 2017, the Tax Act was enacted into law which changed U.S. tax law, including, but not limited to: (1) reducing the U.S. Federal corporate income tax rate from 35% to 21%; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. Federal corporate income taxes on dividends from foreign subsidiaries; (4) capitalizing R&D expenses which are amortized over five to 15 years; and (5) other changes to how foreign and domestic earnings are taxed.

As a result of the Company’s fiscal year being a non-calendar year, the lower U.S. statutory Federal income tax rate resulted in a blended U.S. Federal statutory rate of 26.9% for the Company’s fiscal year 2018. For the year ended July 31, 2018, the Company recognized provisional effects from the Tax Act, which include remeasurements of U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse and recorded a net charge of $36.0 million on Federal net deferred tax assets. In addition, as a result of changes in tax law under the Tax Act, the Company recorded a benefit of $6.1 million related to the change of valuation allowance against certain deferred tax assets that are more likely than not to be realized. The Company concluded that no tax will be due related to the one-time transition tax on the deemed repatriation of deferred foreign income.

The Tax Act includes a provision to tax global intangible low-taxed income (“GILTI”) of foreign subsidiaries and a base erosion abuse tax measure that taxes certain payments between a U.S. corporation and its foreign subsidiaries. These provisions of the Tax Act will be effective for the Company beginning August 1, 2018. Under U.S. 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 our measurement of deferred taxes. The Company has elected the current period expense method. The SEC staff issued Staff Accounting Bulletin No. 118 which provides for a measurement period of up to one year after the enactment date of the Tax Act to finalize the related income tax impacts. The Company expects to complete the accounting for the Tax Act during this measurement period.

The Company’s income before provision for income taxes for the years ended July 31, 2018, 2017 and 2016 is as follows:



	Fiscal years ended July 31,
	2018 As Restated			2017 As Restated		2016
	(in thousands)
Domestic	$	(13,501	)	$	21,723	$	11,209
International	5,225			6,803		9,573
Income before provision for income taxes	$	(8,276	)	$	28,526	$	20,782

The provision for income taxes consisted of the following:



	Fiscal years ended July 31,
	2018 As Restated			2017 As Restated			2016
	(in thousands)
Current:
U.S. Federal	$	2,047		$	6,339		$	4,936
State	219			1,829			1,006
Foreign	2,203			3,595			4,350
Total current	4,469			11,763			10,292
Deferred:
U.S. Federal	15,766			(686		)	(4,867		)
State	(1,460		)	(429		)	631
Foreign	(308		)	(194		)	(250		)
Total deferred	13,998			(1,309		)	(4,486		)
Total provision for income taxes	$	18,467		$	10,454		$	5,806

Differences between income taxes calculated using the statutory Federal income tax rate of 26.9% in the fiscal year ended July 31, 2018 and 35% in the fiscal years ended July 31, 2017 and 2016 and the provision for income taxes are as follows:



	Fiscal years ended July 31,
	2018 As Restated			2017 As Restated			2016
	(in thousands)
Statutory Federal income tax	$	(2,224	)	$	9,984		$	7,274
State taxes, net of Federal benefit	(993		)	806			1,261
Share-based compensation	(8,715		)	2,517			2,670
Non-deductible officers' compensation	3,230			959			—
Foreign income taxed at different rates	1,022			(819		)	(1,190		)
Research tax credits	(5,822		)	(2,377		)	(3,827		)
Re-measurement of U.S. deferred taxes	36,125			—			—
Non-deductible acquisition costs	1,270			270			354
Domestic production activity deduction	—			(1,370		)	(1,189		)
Permanent differences and others	666			484			453
Change in valuation allowance	(6,092		)	—			—
Total provision for income taxes	$	18,467		$	10,454		$	5,806

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



	As of July 31,
	2018 As Restated		2017
	(in thousands)
Accruals and reserves	$	12,129	$	11,612
Stock-based compensation	7,658		8,519
Deferred revenue	4,023		3,848
Property and equipment	1,268		1,189
Net operating loss carryforwards	56,668		16,720
Tax credits	60,450		11,919
Total deferred tax assets	142,196		53,807
Less valuation allowance	28,541		12,583
Net deferred tax assets	113,655		41,224
Less deferred tax liabilities:
Intangible assets	11,461		3,794
Convertible debt	11,567		—
Unremitted foreign earnings	258		—
Total deferred tax liabilities	23,286		3,794
Deferred tax assets, net	90,369		37,430
Less foreign deferred revenue	69		—
Total net deferred tax assets	$	90,300	$	37,430

The Company adopted ASU 2016-09 effective August 1, 2017 and recorded $87.4 million of deferred tax assets related to excess tax benefits from share-based award activity as of July 31, 2017, which was offset by an increase to the valuation allowance of $0.6 million.

As a result of the Company’s convertible note offering in March 2018, the Company recorded a net deferred tax liability (“DTL”) of $11.7 million. The initial DTL was recorded as a reduction to additional paid in capital.

The Company considered both positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, historic book profit/loss, prior taxable income/loss, and results of future operations, and determined that a valuation allowance was not required for a significant portion of its deferred tax assets. A valuation allowance of $28.5 million and $12.6 million remained as of July 31, 2018 and 2017, respectively. The increase of $15.9 million in valuation allowances in the current year relate primarily to net operating losses and income tax credits incurred in certain tax jurisdictions for which no tax benefit was recognized.

As of July 31, 2018, the Company had U. S. Federal, California and other states net operating loss (“NOL”) carryforwards of $218.0 million, $67.0 million, and $109.4 million, respectively. The U. S. Federal and California NOL carryforwards will start to expire in 2027 and 2019, respectively.

As of July 31, 2018, the Company had research and development tax credit (“R&D credit”) carryforwards of the following (in thousands):



U.S. Federal	$	33,074
California	28,531
Total R&D credit carryforwards	$	61,605

The U.S. Federal R&D credit will start to expire in 2023. California R&D tax credits have no expiration.

Federal and California laws impose restrictions on the utilization of net operating loss carryforwards and R&D credit carryforwards in the event of a change in ownership of the Company, which constitutes an “ownership change” as defined by Internal Revenue Code Sections 382 and 383. The Company experienced an ownership change in the past that does not materially impact the availability of its net operating losses and tax credits. However, should there be an ownership change in the future, the Company’s ability to utilize existing carryforwards could be substantially restricted.

The Company provides U.S. income taxes on the earnings of foreign subsidiaries, unless the subsidiaries’ earnings are considered indefinitely reinvested outside the United States. As of July 31, 2018, the Company has recorded a provisional estimate for U.S. income taxes on undistributed earnings from foreign subsidiaries of $0.3 million. The Company may repatriate foreign earnings that have been taxed in the United States in the future to the extent that the repatriation is not restricted by local laws or there are no substantial incremental costs associated with such repatriation.

Unrecognized Tax Benefits

Activity related to unrecognized tax benefits is as follows:



	Fiscal years ended July 31,
	2018			2017			2016
	(in thousands)
Unrecognized tax benefit - beginning of period	$	9,346		$	7,687		$	6,109
Gross increases - prior period tax positions	729			712			177
Gross decreases - prior period tax positions	(878		)	(691		)	(216		)
Gross increases - current period tax positions	1,124			1,638			1,617
Unrecognized tax benefit - end of period	$	10,321		$	9,346		$	7,687

During the year ended July 31, 2018, the Company’s unrecognized tax benefits increased by $1.0 million, primarily associated with the Company’s U.S. Federal and California R&D tax credits. As of July 31, 2018, the Company had unrecognized tax benefits of $5.4 million that, if recognized, would affect the Company’s effective tax rate. An estimate of the range of possible change within the next 12 months cannot be made at this time.

The Company or one of its subsidiaries files income taxes in the U.S. Federal jurisdiction and various state and foreign jurisdictions. If the Company utilizes net operating losses or tax credits in future years, the U.S. Federal, state and local, and non-U.S. tax authorities may examine the tax returns covering the period in which the net operating losses and tax credits arose. As a result, the Company’s tax returns in the U.S. and California remain open to examination from fiscal years 2002 through 2018. As of July 31, 2018, the Company has no income tax audits in progress in the U.S. or foreign jurisdictions.

Defined Contributions and Other Postretirement Plans	12 Months Ended
Defined Contributions and Other Postretirement Plans	Jul. 31, 2018
Retirement Benefits [Abstract]
Defined Contributions and Other Postretirement Plans	Defined Contribution and Other Post-retirement Plans The Company’s employee savings and retirement plan in the United States is qualified under Section 401(k) of the Internal Revenue Code. Employees on the Company’s U.S. payroll are automatically enrolled when they meet eligibility requirements, unless they decline participation. Upon enrollment employees are provided with tax-deferred salary deductions and various investment options. Employees may contribute up to 60% of their eligible salary up to the statutory prescribed annual limit. The Company matches employees’ contributions up to $5,000 per participant per calendar year. Certain of the Company’s foreign subsidiaries also have defined contribution plans in which a majority of its employees participate and the Company makes matching contributions. The Company’s contributions to its 401(k) and foreign subsidiaries’ plans were $8.7 million, $7.1 million and $5.5 million for the fiscal years ended July 31, 2018, 2017 and 2016, respectively.

Segment Information

12 Months Ended

Jul. 31, 2018

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 license, maintenance and professional services offerings, while all other financial information is reviewed on a consolidated basis. All of 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:



	Fiscal years ended July 31,
	2018 As Restated		2017 As Restated		2016
	(in thousands)
United States	$	409,729	$	301,083	$	230,935
Canada	45,591		50,956		44,717
Other Americas	19,154		19,447		18,114
Total Americas	474,474		371,486		293,766
United Kingdom	36,653		32,554		34,031
Other EMEA	75,178		48,727		41,914
Total EMEA	111,831		81,281		75,945
Total APAC	66,544		56,766		54,735
Total revenue	$	652,849	$	509,533	$	424,446

No country other than those listed above accounted for more than 10% of revenue during the years ended July 31, 2018, 2017 and 2016.

The Company’s long-lived assets, including goodwill and intangibles, net by geographic region are as follows:



	July 31, 2018		July 31, 2017
	(in thousands)
Americas	$	449,588	$	224,667
EMEA	5,491		2,747
APAC	47		128
Total	$	455,126	$	227,542

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

12 Months Ended

Jul. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business

Company

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		3 years
Leasehold improvements		Shorter of the lease term or estimated useful life

Software Development Costs

Business Combinations

Impairment of Long-Lived Assets, Intangible Assets and Goodwill

Convertible Senior Notes

Concentration of Credit Risk

Accounts Receivable and Allowance for Doubtful Accounts

Revenue Recognition

Revenue is derived from three sources:


(i)	License fees, related to term (or time-based) licenses, cloud-based subscriptions (also referred to as “subscriptions”), and perpetual software licenses;


(ii)	Maintenance fees associated with term or perpetual licenses relate to email and phone support, bug fixes and unspecified software updates, and upgrades released when, and if, available during the maintenance term; and


(iii)	Services fees from professional services relate to implementation of the Company’s software, reimbursable travel, and training provided to our customers.

Revenue is recognized when all of the following criteria are met:


•	Persuasive evidence of an arrangement exists. Evidence of an arrangement consists of a written contract signed by both the customer and management prior to the end of the period.


•	Delivery or performance has occurred. The Company’s software is delivered electronically to the customer. Delivery is considered to have occurred when the Company provides the customer access to the software along with login credentials.

•

The Company’s subscriptions are recognized ratably over the term of the arrangement typically upon provisioning the products.

Advertising costs are expensed as incurred and amounts incurred were not material during the years ended July 31, 2018, 2017 and 2016.

Stock-Based Compensation

Income Taxes

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

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Compensation, Stock Compensation (ASC 718): Improvements to Employee Share-Based Payment Accounting (As Restated)

Recent Accounting Pronouncements Not Yet Adopted

Revenue from Contracts with Customers (ASC 606): Revenue Recognition (As Restated)

The Company will adopt these ASUs (collectively, ASC 606) on August 1, 2018 under the Modified Retrospective Method.

Leases (ASC 842): Accounting for Leases

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

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.

Earnings Per Share

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

12 Months Ended

Jul. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Adjustments

The table below presents the impact of the adjustments on the quarterly condensed consolidated statement of operations for each of the interim quarters during the year ended July 31, 2018 (in thousands, except per share data):



	3 Months Ended October 31, 2017						3 Months Ended January 31, 2018						3 Months Ended April 30, 2018
	As Previously Reported			As Revised			As Previously Reported			As Revised			As Previously Reported			As Revised
	(unaudited)
Revenue:
License and other	$	30,093		$	32,136		$	84,221		$	80,782		$	50,359		$	52,392
Maintenance	18,930			18,930			19,110			19,110			18,749			18,749
Services	59,148			59,148			60,457			60,334			71,361			71,008
Total revenue	108,171			110,214			163,788			160,226			140,469			142,149
Cost of revenue	62,894			63,106			67,769			67,516			74,321			75,681
Gross profit	45,277			47,108			96,019			92,710			66,148			66,468
Total operating expenses	77,992			77,992			96,684			96,684			95,335			95,335
Income from operations	(32,715		)	(30,884		)	(665		)	(3,974		)	(29,187		)	(28,867		)
Other income (expense), net	1,646			1,646			3,224			3,224			1,178			1,178
Provision for income taxes	(22,155		)	(26,488		)	48,114			50,870			20,613			3,461
Net income (loss)	$	(8,914	)	$	(2,750	)	$	(45,555	)	$	(51,620	)	$	(48,622	)	$	(31,150	)
Net income (loss) per share:
Basic	$	(0.12	)	$	(0.04	)	$	(0.59	)	$	(0.67	)	$	(0.62	)	$	(0.40	)
Diluted	$	(0.12	)	$	(0.04	)	$	(0.59	)	$	(0.67	)	$	(0.62	)	$	(0.40	)

The table below presents the impact of the adjustments on the Company’s consolidated statement of operations for FY18 and FY17 (in thousands, except per share data):



	For the year ended July 31, 2018									For the year ended July 31, 2017
	As Previously Reported			Adjustments			As Restated			As Previously Reported		Adjustments			As Restated
Revenue:
License and other	$	315,776		$	(6,769	)	$	309,007		$	271,462	$	(4,751	)	$	266,711
Maintenance	77,337			—			77,337			68,643		—			68,643
Services	267,954			(1,449		)	266,505			174,179		—			174,179
Total revenue	661,067			(8,218		)	652,849			514,284		(4,751		)	509,533
Cost of revenue	296,707			76			296,783			191,559		—			191,559
Gross profit	364,360			(8,294		)	356,066			322,725		(4,751		)	317,974
Total operating expenses	371,690			—			371,690			296,113		—			296,113
Loss from operations	(7,330		)	(8,294		)	(15,624		)	26,612		(4,751		)	21,861
Other income (expense), net	7,348			—			7,348			6,665		—			6,665
Provision for income taxes	19,683			(1,216		)	18,467			12,053		(1,599		)	10,454
Net income (loss)	$	(19,665	)	$	(7,078	)	$	(26,743	)	$	21,224	$	(3,152	)	$	18,072
Net income (loss) per share:
Basic	$	(0.25	)	$	(0.09	)	$	(0.34	)	$	0.29	$	(0.04	)	$	0.24
Diluted	$	(0.25	)	$	(0.09	)	$	(0.34	)	$	0.28	$	(0.04	)	$	0.24

The table below presents the impact of the adjustments on the Company’s consolidated statement of operations for the three months ended July 31, 2018 and 2017 (in thousands, except per share data):



	For the three months ended July 31, 2018									For the three months ended July 31, 2017
	As Previously Reported			Adjustments			As Restated			As Previously Reported		Adjustments			As Restated
	(unaudited)
Revenue:
License and other	$	151,103		$	(7,406	)	$	143,697		$	109,695	$	(4,751	)	$	104,944
Maintenance	20,548			—			20,548			18,671		—			18,671
Services	76,988			(973		)	76,015			52,734		—			52,734
Total revenue	248,639			(8,379		)	240,260			181,100		(4,751		)	176,349
Cost of revenue	91,723			(1,243		)	90,480			57,261		—			57,261
Gross profit	156,916			(7,136		)	149,780			123,839		(4,751		)	119,088
Total operating expenses	101,679			—			101,679			82,791		—			82,791
Loss from operations	55,237			(7,136		)	48,101			41,048		(4,751		)	36,297
Other income (expense), net	1,300			—			1,300			2,720		—			2,720
Provision for income taxes	(26,889		)	17,513			(9,376		)	16,841		(1,599		)	15,242
Net income (loss)	83,426			(24,649		)	58,777			26,927		(3,152		)	23,775
Net income (loss) per share:
Basic	$	1.04		$	(0.31	)	$	0.73		$	0.36	$	(0.04	)	$	0.32
Diluted	$	1.02		$	(0.30	)	$	0.72		$	0.36	$	(0.04	)	$	0.31

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		3 years
Leasehold improvements		Shorter of the lease term or estimated useful life

Fair Value of Financial Instruments (Tables)

12 Months Ended

Jul. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Available-for-sale Securities Reconciliation

Available-for-sale investments within cash equivalents and investments consist of the following:



	July 31, 2018
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(in thousands)
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



	July 31, 2017
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(in thousands)
U.S. Government agency securities	$	22,662	$	—	$	(66	)	$	22,596
Commercial paper	147,371		2		(34		)	147,339
Corporate bonds	258,334		157		(146		)	258,345
U.S. Government bonds	67,164		—		(185		)	66,979
Certificate of deposit	27,498		29		—			27,527
Money market funds	96,313		—		—			96,313
Total	$	619,342	$	188	$	(431	)	$	619,099

Schedule of Unrealized Loss on Investments



	July 31, 2018
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(in thousands)
U.S. Government agency securities	$	6,974	$	(24	)	$	1,999	$	(3	)	$	8,973	$	(27	)
Commercial paper	144,342		(141		)	—		—			144,342		(141		)
Corporate bonds	307,590		(755		)	13,497		(8		)	321,087		(763		)
U. S. Government bonds	65,013		(11		)	19,948		(44		)	84,961		(55		)
Foreign government bonds	766		(1		)	—		—			766		(1		)
Certificate of deposit	23,734		(8		)	—		—			23,734		(8		)
Total	$	548,419	$	(940	)	$	35,444	$	(55	)	$	583,863	$	(995	)

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:



	July 31, 2018
	Less Than 12 Months		12 to 24 Months		Total
	(in thousands)
U.S. Government agency securities	$	1,999	$	6,974	$	8,973
Commercial paper	465,030		6,799		471,829
Corporate bonds	280,249		151,291		431,540
U.S. Government bonds	89,931		—		89,931
Foreign government bonds	4,448		4,864		9,312
Certificate of deposit	61,006		21,024		82,030
Money market funds	90,766		—		90,766
Total	$	993,429	$	190,952	$	1,184,381

Company's financial instruments measured at fair value on a 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:



	July 31, 2018
	Level 1		Level 2		Level 3		Total
	(in thousands)
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 investments	—		190,952		—		190,952
Total	$	90,766	$	1,093,615	$	—	$	1,184,381



	July 31, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash and cash equivalents:
Commercial paper	$	—	$	98,174	$	—	$	98,174
Money market funds	96,313		—		—		96,313
Total Cash equivalents	96,313		98,174		—		194,487
Short-term investments:
U.S. Government agency securities	—		20,583		—		20,583
Commercial paper	—		49,165		—		49,165
U. S. Government bonds	—		47,105		—		47,105
Foreign government bonds	—		—		—		—
Corporate bonds	—		170,654		—		170,654
Certificate of deposit	—		22,520		—		22,520
Total Short-term investments	—		310,027		—		310,027
Long-term investments:
U.S. Government agency securities	—		2,013		—		2,013
Certificate of deposit	—		5,007		—		5,007
Corporate bonds	—		87,691		—		87,691
U.S. Government bonds	—		19,874		—		19,874
Foreign government bonds	—		—		—		—
Total Long-term investments	—		114,585		—		114,585
Total	$	96,313	$	522,786	$	—	$	619,099

Acquisition (Tables)

12 Months Ended

Jul. 31, 2018

Cyence, Inc.

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition

The preliminary purchase consideration is as follows (in thousands):




Cash consideration paid at close	$	146,651
Equity issued to shareholders	102,493
Issuance of replacement awards	11,205
Total preliminary purchase consideration	$	260,349

The preliminary allocation of the purchase consideration is as follows:



	Preliminary Purchase Price Allocation		Estimated Useful Lives
	(in thousands)		(in years)
Acquired assets, net of assumed liabilities	$	9,620
Developed technology	28,400		5
Customer contracts and related relationships	17,700		5
Order backlog	3,200		2
Trademarks	2,500		7
Goodwill	198,929
Total preliminary purchase consideration	$	260,349

Business Acquisition, Pro Forma Information

The unaudited pro forma financial information is as follows (in thousands):



	Fiscal years ended July 31,
	2018 As Restated			2017 As Restated
Pro forma revenue	$	657,781		$	519,351
Pro forma net loss	$	(29,696	)	$	(12,899	)
Pro forma net loss per share -- basic and diluted	$	(0.38	)	$	(0.17	)

ISCS [Member]

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition

The allocation of the purchase consideration was as follows:



	Total Purchase Price Allocation		Estimated Useful Lives
	(in thousands)		(in years)
Acquired assets, net of assumed liabilities	$	4,530
Developed technology	43,300		4
Customer contracts and related relationships	7,000		9
Order backlog	3,500		4
Deferred tax assets	171
Goodwill	96,431
Total preliminary purchase price	$	154,932

FirstBest

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition

The allocation of the purchase consideration was as follows:



	Total Purchase Price Allocation		Estimated Useful Lives
	(in thousands)		(in years)
Acquired assets, net of assumed liabilities	$	2,518
Developed technology	8,000		5
Customer contracts and related relationships	6,500		9
Order backlog	900		3
Deferred tax assets, net	4,406
Goodwill	15,434
Total purchase price	$	37,758

Balance Sheet Components (Tables)

12 Months Ended

Jul. 31, 2018

Balance Sheet Related Disclosures [Abstract]

Property and equipment

Property and Equipment, net

Property and equipment consist of the following:



	July 31, 2018			July 31, 2017
	(in thousands)
Computer hardware	$	24,879		$	21,408
Purchased software	4,664			3,855
Capitalized software development costs	3,978			1,065
Furniture and fixtures	4,217			3,253
Leasehold improvements	10,751			8,251
Total property and equipment	48,489			37,832
Less accumulated depreciation	(29,894		)	(23,456		)
Property and equipment, net	$	18,595		$	14,376

Goodwill and Intangible Assets

Changes in the carrying amount of goodwill for the periods presented is as follows (in thousands):



Goodwill - July 31, 2016	$	30,080
FirstBest Acquisition	15,434
ISCS Acquisition	96,337
Goodwill - July 31, 2017	$	141,851
Cyence Acquisition	198,929
Changes in carrying value	97
Goodwill - July 31, 2018	$	340,877

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



	July 31, 2018						July 31, 2017
	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
	(in thousands)
Intangible assets:
Acquired technology	$	93,600	$	34,189	59,411		$	65,200	$	14,710	$	50,490
Customer contracts and related relationships	35,700		6,633		29,067		18,000		1,683		16,317
Partner relationships	200		52		148		200		30		170
Trademarks	2,500		268		2,232		—		—		—
Order backlog	8,700		3,904		4,796		5,500		1,162		4,338
Total	$	140,700	$	45,046	$	95,654	$	88,900	$	17,585	$	71,315

Future Amortization Expense

The estimated future aggregate amortization expense for existing intangible assets as of July 31, 2018, based on their current useful lives, is as follows (in thousands):



Fiscal year ending July 31,
2019	$	29,112
2020	26,834
2021	19,965
2022	11,143
2023	3,799
Thereafter	4,801
Total future amortization expense	$	95,654

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts consists of the following (in thousands):



Allowance for Doubtful Accounts as of July 31, 2017	$	—
Charges to bad debt and revenue reserves	1,062
Write-offs, net	—
Allowance for Doubtful Accounts as of July 31, 2018	$	1,062

Accrued Employee Compensation

Accrued employee compensation consists of the following:



	July 31, 2018		July 31, 2017
	(in thousands)
Accrued bonuses	$	31,273	$	26,581
Accrued commission	7,287		5,228
Accrued vacation	13,132		10,873
Accrued salaries, payroll taxes and benefits	8,443		6,200
Total	$	60,135	$	48,882

Deferred Revenues

Deferred Revenue

Deferred revenue, current and non-current, consists of the following:



	July 31, 2018 As Restated		July 31, 2017 As Restated
Deferred revenue, current:	(in thousands)
Deferred license and other revenue	$	53,755	$	25,769
Deferred maintenance revenue	52,010		46,562
Deferred services revenue	21,342		23,663
Total deferred revenue, current	$	127,107	$	95,994
Deferred revenue, non-current	23,758		19,892
Total	$	150,865	$	115,886

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss was as follows:



	Foreign Currency Items			Unrealized gain (loss) on available-for-sale securities			Total
	(in thousands)
Balance as of July 31, 2016	$	(6,809	)	$	216		$	(6,593	)
Foreign currency translation adjustments	1,179			(465		)	714
Unrealized loss on available-for-sale securities	—			(151		)	(151		)
Tax effect	—			234			234
Balance as of July 31, 2017	(5,630		)	(166		)	(5,796		)
Foreign currency translation adjustments	(1,567		)	(596		)	(2,163		)
Unrealized loss on available-for-sale securities	—			(22		)	(22		)
Tax effect	—			233			233
Balance as of July 31, 2018	$	(7,197	)	$	(551	)	$	(7,748	)

Net Income (Loss) per Share (Tables)

12 Months Ended

Jul. 31, 2018

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 per share for the years ended July 31, 2018, 2017 and 2016:



	Fiscal years ended July 31,
	2018 As Restated			2017 As Restated		2016
	(in thousands, except share and per share amounts)
Numerator:
Net income (loss)	$	(26,743	)	$	18,072	$	14,976
Net income (loss) per share:
Basic	$	(0.34	)	$	0.24	$	0.21
Diluted	$	(0.34	)	$	0.24	$	0.20
Denominator:
Weighted average shares used in computing net income (loss) per share:
Basic	77,709,592			73,994,577		72,026,694
Weighted average effect of dilutive stock options	—			544,520		859,855
Weighted average effect of dilutive Stock Awards	—			789,246		879,411
Diluted	77,709,592			75,328,343		73,765,960

Outstanding antidilutive shares of common stock equivalents



	Fiscal years ended July 31,
	2018	2017	2016
Stock options to purchase common stock	597,476	24,128	77,737
Restricted Stock Awards	3,161,157	88,582	22,994

Convertible Senior Notes (Tables)

12 Months Ended

Jul. 31, 2018

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:



	July 31, 2018
	(in thousands)
Principal	$	400,000
Less: unamortized debt discount and issuance costs
Unamortized debt discount	85,343
Debt issuance cost	9,529
Net carrying amount	$	305,128

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



	Fiscal Year Ended July 31, 2018
	(in thousands)
Contractual interest expense	$	1,903
Amortization of debt discount	4,134
Amortization of debt issuance costs	378
Total	$	6,415
Effective interest rate of the liability component	5.53		%

Commitments and Contingencies (Tables)

12 Months Ended

Jul. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Future commitments and obligations under the operating leases

The Company’s contractual obligations and commitments as of July 31, 2018 are as follows:



	Lease Obligations ⁽¹⁾		Royalty Obligations⁽²⁾		Purchase Commitments ⁽³⁾		Long-Term Debt⁽⁴⁾		Total
Fiscal Year Ending July 31,	(in thousands)
2019	$	10,718	$	1,761	$	60,298	$	5,028	$	77,805
2020	10,713		698		8,181		5,000		24,592
2021	14,615		101		1,368		5,000		21,084
2022	13,295		—		253		5,000		18,548
2023	12,507		—		—		5,000		17,507
2024 and thereafter	85,156		—		—		410,000		495,156
Total	$	147,004	$	2,560	$	70,100	$	435,028	$	654,692


⁽¹⁾	Operating lease agreements primarily represent our obligations to make payments under our non-cancellable lease agreements for our corporate headquarters and worldwide offices through 2028.


⁽²⁾	Royalty obligations primarily represent our obligations under our non-cancellable agreements related to software used in certain revenue-generating agreements.


⁽³⁾	Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent commitments for which a penalty could be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement

Stockholders' Equity and Stock-based Compensation (Tables)

12 Months Ended

Jul. 31, 2018

Stockholders' Equity and Stock-based Compensation [Abstract]

Stock-based compensation expense

Stock-based compensation cost related to Stock Awards and stock options is included in the Company’s consolidated statements of operations as follows:



	Fiscal years ended July 31,
	2018		2017			2016
	(in thousands)
Total stock-based compensation	$	89,176	$	72,695		$	66,409
Net impact of deferred stock-based compensation	438		(901		)	(278		)
Total stock-based compensation expense	$	89,614	$	71,794		$	66,131

Stock-based compensation expense was charged to the following categories:
Cost of license and other revenue	$	1,002	$	373		$	433
Cost of maintenance revenue	1,886		1,694			1,491
Cost of services revenue	21,856		18,622			17,878
Research and development	25,440		18,123			15,555
Sales and marketing	18,387		16,663			15,090
General and administrative	21,043		16,319			15,684
Total stock-based compensation expense	89,614		71,794			66,131
Tax benefit from stock-based compensation	24,481		23,014			20,092
Total stock-based compensation expense, net of tax effect	$	65,133	$	48,780		$	46,039

Schedule of Unrecognized Compensation Cost, Nonvested Awards

As of July 31, 2018, total unrecognized stock-based compensation cost for our options and Stock Awards was as follows:



	Unrecognized Expense		Weighted Average Expected Recognition Period
	(in thousands)		(in years)
Stock Options	$	5,832	2.2
Stock Awards	152,037		2.2
	$	157,869

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		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value ⁽¹⁾
					(in thousands)
Balance as of July 31, 2015	2,882,674		$	42.65	$	170,222
Granted	1,586,192		54.99
Released	(1,408,746	)	41.21		$	78,763
Canceled	(332,396	)	46.71
Balance as of July 31, 2016	2,727,724		50.08		$	167,673
Granted	1,542,235		61.22
Released	(1,372,770	)	49.38		$	81,427
Canceled	(263,104	)	53.53
Balance as of July 31, 2017	2,634,085		56.62		$	190,076
Granted	1,814,084		79.65
Released	(1,260,758	)	56.92		$	103,957
Canceled	(255,256	)	63.66
Balance as of July 31, 2018	2,932,155		$	69.43	$	252,752
Expected to vest as of July 31, 2018	2,932,155		$	69.43	$	252,752


⁽¹⁾	Aggregate intrinsic value at each fiscal year end represents the total market value of Stock Awards at the Company’s closing stock price of $86.20, $72.16 and $61.47 on July 31, 2018, 2017 and 2016, 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:



	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, 2015	1,822,062		$	14.29	4.9	$	81,548
Granted	10,000		54.00
Exercised	(652,832	)	12.01			$	29,186
Canceled	(20,658	)	40.86
Balance as of July 31, 2016	1,158,572		15.45		4.0	$	53,316
Granted	—		—
Exercised	(594,936	)	9.35			$	30,636
Canceled	(8,000	)	2.74
Balance as of July 31, 2017	555,636		22.17		4.0	$	27,777
Granted⁽²⁾	137,057		10.23
Exercised	(150,924	)	13.32			$	10,710
Canceled	(4,705	)	40.05
Balance as of July 31, 2018	537,064		$	21.45	4.3	$	34,774
Vested and expected to vest as of July 31, 2018	537,064		$	21.45	4.3	$	34,774
Exercisable as of July 31, 2018	443,782		$	23.04	3.5	$	28,028


⁽¹⁾	Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $86.20, $72.16 and $61.47 on July 31, 2018, 2017 and 2016 and the exercise price of the option, respectively. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.


⁽²⁾	Represents options assumed through the Cyence acquisition on November 1, 2017.

Schedule of Valuation Assumptions Using Monte Carlo Simulation Model

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



	Fiscal years ended July 31,
	2018	2017	2016
Expected term (in years)	2.88	2.66 - 2.88	*
Risk-free interest rate	1.44%	0.89% - 1.34%	*
Expected volatility of the Company	28%	30.2% - 31.5%	*
Average expected volatility of the peer companies in the S&P Index	34.7%	36.9% - 37.0%	*
Expected dividend yield	—%	—%	*

* There were no TSR PSUs granted during the fiscal year ended July 31, 2016.

Stock options valuation assumptions

The per share fair value of each stock option was determined using the Black-Scholes option-pricing model with the following assumptions:



	Fiscal years ended July 31,
	2018	2017	2016
Expected life (in years)	1.27	*	4.9
Risk-free interest rate	1.48%	*	1.5%
Expected volatility	24.12%	*	38.8%
Expected dividend yield	—%	*	—%
Weighted average fair value of options granted	$67.90	*	$19.18

* There were no options granted during the fiscal year ended July 31, 2017.

Common Stock Reserved for Issuance



	July 31, 2018	July 31, 2017
Exercise of stock options to purchase common stock	537,064	555,636
Vesting of restricted stock units	2,932,155	2,634,085
Shares available for grant under stock plans	21,592,494	18,453,674
Total common stock reserved for issuance	25,061,713	21,643,395

Income Taxes (Tables)

12 Months Ended

Jul. 31, 2018

Income Tax Disclosure [Abstract]

Company's income (loss) before provision for income taxes

The Company’s income before provision for income taxes for the years ended July 31, 2018, 2017 and 2016 is as follows:



	Fiscal years ended July 31,
	2018 As Restated			2017 As Restated		2016
	(in thousands)
Domestic	$	(13,501	)	$	21,723	$	11,209
International	5,225			6,803		9,573
Income before provision for income taxes	$	(8,276	)	$	28,526	$	20,782

Schedule of Components of Income Tax Expense

The provision for income taxes consisted of the following:



	Fiscal years ended July 31,
	2018 As Restated			2017 As Restated			2016
	(in thousands)
Current:
U.S. Federal	$	2,047		$	6,339		$	4,936
State	219			1,829			1,006
Foreign	2,203			3,595			4,350
Total current	4,469			11,763			10,292
Deferred:
U.S. Federal	15,766			(686		)	(4,867		)
State	(1,460		)	(429		)	631
Foreign	(308		)	(194		)	(250		)
Total deferred	13,998			(1,309		)	(4,486		)
Total provision for income taxes	$	18,467		$	10,454		$	5,806

Effective Income Tax Rate Reconciliation



	Fiscal years ended July 31,
	2018 As Restated			2017 As Restated			2016
	(in thousands)
Statutory Federal income tax	$	(2,224	)	$	9,984		$	7,274
State taxes, net of Federal benefit	(993		)	806			1,261
Share-based compensation	(8,715		)	2,517			2,670
Non-deductible officers' compensation	3,230			959			—
Foreign income taxed at different rates	1,022			(819		)	(1,190		)
Research tax credits	(5,822		)	(2,377		)	(3,827		)
Re-measurement of U.S. deferred taxes	36,125			—			—
Non-deductible acquisition costs	1,270			270			354
Domestic production activity deduction	—			(1,370		)	(1,189		)
Permanent differences and others	666			484			453
Change in valuation allowance	(6,092		)	—			—
Total provision for income taxes	$	18,467		$	10,454		$	5,806

Tax effects of temporary differences

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



	As of July 31,
	2018 As Restated		2017
	(in thousands)
Accruals and reserves	$	12,129	$	11,612
Stock-based compensation	7,658		8,519
Deferred revenue	4,023		3,848
Property and equipment	1,268		1,189
Net operating loss carryforwards	56,668		16,720
Tax credits	60,450		11,919
Total deferred tax assets	142,196		53,807
Less valuation allowance	28,541		12,583
Net deferred tax assets	113,655		41,224
Less deferred tax liabilities:
Intangible assets	11,461		3,794
Convertible debt	11,567		—
Unremitted foreign earnings	258		—
Total deferred tax liabilities	23,286		3,794
Deferred tax assets, net	90,369		37,430
Less foreign deferred revenue	69		—
Total net deferred tax assets	$	90,300	$	37,430

Net operating loss carryforwards

he Company had research and development tax credit (“R&D credit”) carryforwards of the following (in thousands):



U.S. Federal	$	33,074
California	28,531
Total R&D credit carryforwards	$	61,605

Summary of activity related to unrecognized tax benefits

Activity related to unrecognized tax benefits is as follows:



	Fiscal years ended July 31,
	2018			2017			2016
	(in thousands)
Unrecognized tax benefit - beginning of period	$	9,346		$	7,687		$	6,109
Gross increases - prior period tax positions	729			712			177
Gross decreases - prior period tax positions	(878		)	(691		)	(216		)
Gross increases - current period tax positions	1,124			1,638			1,617
Unrecognized tax benefit - end of period	$	10,321		$	9,346		$	7,687

Segment Information (Tables)

12 Months Ended

Jul. 31, 2018

Segment Reporting [Abstract]

Revenues by country

by country and region based on the billing address of the customer is as follows:



	Fiscal years ended July 31,
	2018 As Restated		2017 As Restated		2016
	(in thousands)
United States	$	409,729	$	301,083	$	230,935
Canada	45,591		50,956		44,717
Other Americas	19,154		19,447		18,114
Total Americas	474,474		371,486		293,766
United Kingdom	36,653		32,554		34,031
Other EMEA	75,178		48,727		41,914
Total EMEA	111,831		81,281		75,945
Total APAC	66,544		56,766		54,735
Total revenue	$	652,849	$	509,533	$	424,446

Property and equipment, net by geographic region

The Company’s long-lived assets, including goodwill and intangibles, net by geographic region are as follows:



	July 31, 2018		July 31, 2017
	(in thousands)
Americas	$	449,588	$	224,667
EMEA	5,491		2,747
APAC	47		128
Total	$	455,126	$	227,542

The Company and Summary of Significant Accounting Policies and Estimates (Details Textual)	1 Months Ended	3 Months Ended					12 Months Ended
	Mar. 31, 2018 USD ($) $ / shares shares	Jul. 31, 2018 USD ($) customer	Apr. 30, 2018 USD ($)	Jan. 31, 2018 USD ($)	Oct. 31, 2017 USD ($)	Jul. 31, 2017 USD ($) customer	Jul. 31, 2018 USD ($) customer revenue_source shares	Jul. 31, 2017 USD ($) customer	Jul. 31, 2016 USD ($) customer	Aug. 01, 2017 USD ($)
Finite-Lived Intangible Assets [Line Items]
Shares issued during period (in shares) \| shares	2,628,571						2,628,571
Shares issued price per share (in dollars per share) \| $ / shares	$ 87.50
Principal		$ 400,000,000					$ 400,000,000
Proceeds from issuance of common stock, net of issuance costs	$ 220,900,000						220,948,000	$ 0	$ 0
Proceeds from issuance of convertible senior notes, net of issuance costs	387,200,000						387,239,000	0	0
License and other		143,697,000	$ 52,392,000	$ 80,782,000	$ 32,136,000	$ 104,944,000	309,007,000	266,711,000	219,751,000
Services		76,015,000	71,008,000	60,334,000	59,148,000	52,734,000	266,505,000	174,179,000	144,764,000
Cost of revenue		90,480,000	$ 75,681,000	$ 67,516,000	$ 63,106,000	57,261,000	296,783,000	191,559,000	151,834,000
Increase in deferred revenue, current		127,107,000				95,994,000	127,107,000	95,994,000
Increase in deferred tax assets, net		90,369,000				37,430,000	90,369,000	37,430,000
Retained earnings		124,976,000				65,903,000	124,976,000	65,903,000
Decrease in prepaid expenses and other current assets (less than $0.1 million)		(30,464,000)				(26,604,000)	(30,464,000)	(26,604,000)
Additional paid-in capital		1,296,380,000				828,415,000	1,296,380,000	828,415,000
Increase in cash flows provided by operating activities							140,459,000	138,759,000	$ 99,900,000
Unrealized excess tax benefits resulting from exercises of stock options							87,400,000
Less valuation allowance		28,541,000				$ 12,583,000	28,541,000	12,583,000
Increase (decrease) of adoption of new accounting standard		$ 86,825,000					86,825,000			$ 1,000,000
Tax benefit related to stock based awards settled in the period							9,100,000
Goodwill, Intangible Assets and Long Lived Assets Impairment [Abstract]
Goodwill, Impairment Loss							$ 0	$ 0
Concentration of Credit Risk [Abstract]
Number of customers concentration of credit risk revenues \| customer							0	0	0
Number of customers concentration of credit risk receivables \| customer		0				1	0	1
Revenue Recognition [Abstract]
Number of revenue sources \| revenue_source							3
Restricted stock units RSUs [Member]
Finite-Lived Intangible Assets [Line Items]
Period of time based vesting							4 years
TSR PSUs [Member]
Finite-Lived Intangible Assets [Line Items]
Period of time based vesting							3 years
Minimum [Member]
Revenue Recognition [Abstract]
Period of general payment term range considered collectability probable for revenue recognition (in days)							30 days
Warranties [Abstract]
Warranty period provided for software products and services (in months)							3 months
Maximum [Member]
Revenue Recognition [Abstract]
Period of general payment term range considered collectability probable for revenue recognition (in days)							90 days
Term license duration (in years)							1 year
Warranties [Abstract]
Warranty period provided for software products and services (in months)							12 months
Restatement Adjustment [Member]
Finite-Lived Intangible Assets [Line Items]
License and other		$ (7,406,000)				$ (4,751,000)	$ (6,769,000)	$ (4,751,000)
Services		(973,000)				0	(1,449,000)	0
Cost of revenue		(1,243,000)				0	76,000	0
Increase in deferred revenue, current		13,000,000				4,800,000	13,000,000	4,800,000
Increase in deferred tax assets, net		2,900,000					2,900,000
Retained earnings		(8,500,000)				$ (3,200,000)	(8,500,000)	(3,200,000)
Decrease in prepaid expenses and other current assets (less than $0.1 million)		100,000					100,000
Additional paid-in capital		(1,600,000)					(1,600,000)
Increase in cash flows provided by operating activities								$ 1,600,000
Convertible Senior Notes, 1.250% [Member] \| Senior Notes [Member]
Finite-Lived Intangible Assets [Line Items]
Principal	$ 400,000,000
Stated interest rate	1.25%
Accounting Standards Update 2016-09 [Member]
Finite-Lived Intangible Assets [Line Items]
Less valuation allowance		600,000					600,000
Accounting Standards Update 2014-09 [Member] \| Deferred Revenue [Member]
Finite-Lived Intangible Assets [Line Items]
Increase (decrease) of adoption of new accounting standard		(45,000,000)					(45,000,000)
Accounting Standards Update 2014-09 [Member] \| Un-Billed Contract Revenue [Member]
Finite-Lived Intangible Assets [Line Items]
Increase (decrease) of adoption of new accounting standard		45,000,000					45,000,000
Accounting Standards Update 2014-09 [Member] \| Deferred Sales Commission [Member]
Finite-Lived Intangible Assets [Line Items]
Increase (decrease) of adoption of new accounting standard		13,000,000					13,000,000
Retained Earnings [Member]
Finite-Lived Intangible Assets [Line Items]
Increase (decrease) of adoption of new accounting standard		85,816,000					85,816,000
Retained Earnings [Member] \| Accounting Standards Update 2016-09 [Member]
Finite-Lived Intangible Assets [Line Items]
Increase (decrease) of adoption of new accounting standard		$ 86,800,000					$ 86,800,000

The Company and Summary of Significant Accounting Policies and Estimates (Schedule of Adjustments) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					12 Months Ended
	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Revenue:
License and other	$ 143,697	$ 52,392	$ 80,782	$ 32,136	$ 104,944	$ 309,007	$ 266,711	$ 219,751
Maintenance	20,548	18,749	19,110	18,930	18,671	77,337	68,643	59,931
Services	76,015	71,008	60,334	59,148	52,734	266,505	174,179	144,764
Total revenue	240,260	142,149	160,226	110,214	176,349	652,849	509,533	424,446
Cost of revenue	90,480	75,681	67,516	63,106	57,261	296,783	191,559	151,834
Total gross profit	149,780	66,468	92,710	47,108	119,088	356,066	317,974	272,612
Total operating expenses	101,679	95,335	96,684	77,992	82,791	371,690	296,113	256,175
Income (loss) from operations	48,101	(28,867)	(3,974)	(30,884)	36,297	(15,624)	21,861	16,437
Other income (expense), net	1,300	1,178	3,224	1,646	2,720	7,348	6,665
Provision for income taxes	(9,376)	3,461	50,870	(26,488)	15,242	18,467	10,454	5,806
Net income	$ 58,777	$ (31,150)	$ (51,620)	$ (2,750)	$ 23,775	$ (26,743)	$ 18,072	$ 14,976
Net income (loss) per share:
Basic (in USD per share)	$ 0.73	$ (0.40)	$ (0.67)	$ (0.04)	$ 0.32	$ (0.34)	$ 0.24	$ 0.21
Diluted (in USD per share)	$ 0.72	$ (0.40)	$ (0.67)	$ (0.04)	$ 0.31	$ (0.34)	$ 0.24	$ 0.20
Scenario, Previously Reported [Member]
Revenue:
License and other	$ 151,103	$ 50,359	$ 84,221	$ 30,093	$ 109,695	$ 315,776	$ 271,462
Maintenance	20,548	18,749	19,110	18,930	18,671	77,337	68,643
Services	76,988	71,361	60,457	59,148	52,734	267,954	174,179
Total revenue	248,639	140,469	163,788	108,171	181,100	661,067	514,284
Cost of revenue	91,723	74,321	67,769	62,894	57,261	296,707	191,559
Total gross profit	156,916	66,148	96,019	45,277	123,839	364,360	322,725
Total operating expenses	101,679	95,335	96,684	77,992	82,791	371,690	296,113
Income (loss) from operations	55,237	(29,187)	(665)	(32,715)	41,048	(7,330)	26,612
Other income (expense), net	1,300	1,178	3,224	1,646	2,720	7,348	6,665
Provision for income taxes	(26,889)	20,613	48,114	(22,155)	16,841	19,683	12,053
Net income	$ 83,426	$ (48,622)	$ (45,555)	$ (8,914)	$ 26,927	$ (19,665)	$ 21,224
Net income (loss) per share:
Basic (in USD per share)	$ 1.04	$ (0.62)	$ (0.59)	$ (0.12)	$ 0.36	$ (0.25)	$ 0.29
Diluted (in USD per share)	$ 1.02	$ (0.62)	$ (0.59)	$ (0.12)	$ 0.36	$ (0.25)	$ 0.28
Restatement Adjustment [Member]
Revenue:
License and other	$ (7,406)				$ (4,751)	$ (6,769)	$ (4,751)
Maintenance	0				0	0	0
Services	(973)				0	(1,449)	0
Total revenue	(8,379)				(4,751)	(8,218)	(4,751)
Cost of revenue	(1,243)				0	76	0
Total gross profit	(7,136)				(4,751)	(8,294)	(4,751)
Total operating expenses	0				0	0	0
Income (loss) from operations	(7,136)				(4,751)	(8,294)	(4,751)
Other income (expense), net	0				0	0	0
Provision for income taxes	17,513				(1,599)	(1,216)	(1,599)
Net income	$ (24,649)				$ (3,152)	$ (7,078)	$ (3,152)
Net income (loss) per share:
Basic (in USD per share)	$ (0.31)				$ (0.04)	$ (0.09)	$ (0.04)
Diluted (in USD per share)	$ (0.30)				$ (0.04)	$ (0.09)	$ (0.04)

The Company and Summary of Significant Accounting Policies and Estimates (Details)	12 Months Ended
	Jul. 31, 2018
Computer hardware [Member]
Estimated useful lives of property and equipment
Estimated useful lives of property and equipment (in years)	3 years
Purchased Software [Member]
Estimated useful lives of property and equipment
Estimated useful lives of property and equipment (in years)	3 years
Furniture and Fixtures [Member]
Estimated useful lives of property and equipment
Estimated useful lives of property and equipment (in years)	3 years
Leasehold improvements [Member]
Estimated useful lives of property and equipment
Estimated useful lives of property and equipment	Shorter of the lease term or estimated useful life

Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 1,185,243	$ 619,342
Unrealized Gains	133	188
Unrealized Losses	(995)	(431)
Estimated Fair Value	1,184,381	619,099
U.S. agency securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	9,000	22,662
Unrealized Gains	0	0
Unrealized Losses	(27)	(66)
Estimated Fair Value	8,973	22,596
Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	471,966	147,371
Unrealized Gains	4	2
Unrealized Losses	(141)	(34)
Estimated Fair Value	471,829	147,339
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	432,234	258,334
Unrealized Gains	69	157
Unrealized Losses	(763)	(146)
Estimated Fair Value	431,540	258,345
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	89,986	67,164
Unrealized Gains	0	0
Unrealized Losses	(55)	(185)
Estimated Fair Value	89,931	66,979
Foreign government bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	9,306
Unrealized Gains	7
Unrealized Losses	(1)
Estimated Fair Value	9,312
Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	81,985	27,498
Unrealized Gains	53	29
Unrealized Losses	(8)	0
Estimated Fair Value	82,030	27,527
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	90,766	96,313
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	$ 90,766	$ 96,313

Fair Value of Financial Instruments (Details 2) $ in Thousands	Jul. 31, 2018 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	$ 548,419
Less than 12, Months, Gross Unrealized Losses	(940)
12 Months or Greater, Fair Value	35,444
12 Months or Greater, Gross Unrealized Losses	(55)
Total, Fair Value	583,863
Total, Gross Unrealized Losses	(995)
U.S. government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	6,974
Less than 12, Months, Gross Unrealized Losses	(24)
12 Months or Greater, Fair Value	1,999
12 Months or Greater, Gross Unrealized Losses	(3)
Total, Fair Value	8,973
Total, Gross Unrealized Losses	(27)
Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	144,342
Less than 12, Months, Gross Unrealized Losses	(141)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	144,342
Total, Gross Unrealized Losses	(141)
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	307,590
Less than 12, Months, Gross Unrealized Losses	(755)
12 Months or Greater, Fair Value	13,497
12 Months or Greater, Gross Unrealized Losses	(8)
Total, Fair Value	321,087
Total, Gross Unrealized Losses	(763)
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	65,013
Less than 12, Months, Gross Unrealized Losses	(11)
12 Months or Greater, Fair Value	19,948
12 Months or Greater, Gross Unrealized Losses	(44)
Total, Fair Value	84,961
Total, Gross Unrealized Losses	(55)
Foreign government bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	766
Less than 12, Months, Gross Unrealized Losses	(1)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	766
Total, Gross Unrealized Losses	(1)
Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	23,734
Less than 12, Months, Gross Unrealized Losses	(8)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	23,734
Total, Gross Unrealized Losses	$ (8)

Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2019	$ 993,429
Expected maturities for the year ending July 31, 2020	190,952
Estimated Fair Value	1,184,381	$ 619,099
U.S. agency securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2019	1,999
Expected maturities for the year ending July 31, 2020	6,974
Estimated Fair Value	8,973	22,596
Commercial paper [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2019	465,030
Expected maturities for the year ending July 31, 2020	6,799
Estimated Fair Value	471,829	147,339
Corporate bonds [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2019	280,249
Expected maturities for the year ending July 31, 2020	151,291
Estimated Fair Value	431,540	258,345
US Treasury Securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2019	89,931
Expected maturities for the year ending July 31, 2020	0
Estimated Fair Value	89,931	66,979
Foreign government bonds [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2019	4,448
Expected maturities for the year ending July 31, 2020	4,864
Estimated Fair Value	9,312
Certificates of Deposit [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2019	61,006
Expected maturities for the year ending July 31, 2020	21,024
Estimated Fair Value	82,030	27,527
Money Market Funds [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2019	90,766
Expected maturities for the year ending July 31, 2020	0
Estimated Fair Value	$ 90,766	$ 96,313

Fair Value of Financial Instruments (Details 4) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 363,421	$ 194,487
Short-term investments	630,008	310,027
Long-term investments	190,952	114,585
Total assets	1,184,381	619,099
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	90,766	96,313
Short-term investments	0	0
Long-term investments	0	0
Total assets	90,766	96,313
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	272,655	98,174
Short-term investments	630,008	310,027
Long-term investments	190,952	114,585
Total assets	1,093,615	522,786
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Short-term investments	0	0
Long-term investments	0	0
Total assets	0	0
U.S. agency securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	1,999	20,583
Long-term investments	6,974	2,013
Total assets	8,973	22,596
U.S. agency securities [Member] \| Fair Value, Inputs, Level 1 [Member]
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. agency securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	1,999	20,583
Long-term investments	6,974	2,013
U.S. agency securities [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term investments		5,007
Asset-backed Securities [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term investments		0
Asset-backed Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term investments		5,007
Asset-backed Securities [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term investments		0
Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	269,654	98,174
Short-term investments	195,376	49,165
Total assets	471,829	147,339
Commercial paper [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Short-term investments	0	0
Commercial paper [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	269,654	98,174
Short-term investments	195,376	49,165
Commercial paper [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Short-term investments	0	0
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	3,001
Short-term investments	277,248	170,654
Long-term investments	151,291	87,691
Total assets	431,540	258,345
Corporate bonds [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0
Short-term investments	0	0
Long-term investments	0	0
Corporate bonds [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	3,001
Short-term investments	277,248	170,654
Long-term investments	151,291	87,691
Corporate bonds [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0
Short-term investments	0	0
Long-term investments	0	0
Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	61,006	22,520
Long-term investments	21,024
Total assets	82,030	27,527
Certificates of Deposit [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0
Certificates of Deposit [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	61,006	22,520
Long-term investments	21,024
Certificates of Deposit [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	90,766	96,313
Total assets	90,766	96,313
Money Market Funds [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	90,766	96,313
Money Market Funds [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Money Market Funds [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	89,931	47,105
Long-term investments	6,799	19,874
Total assets	89,931	66,979
US Treasury Securities [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
US Treasury Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	89,931	47,105
Long-term investments	6,799	19,874
US Treasury Securities [Member] \| Fair Value, Inputs, Level 3 [Member]
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 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	4,448	0
Long-term investments	4,864	0
Total assets	9,312
Foreign government bonds [Member] \| Fair Value, Inputs, Level 1 [Member]
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 [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	4,448	0
Long-term investments	4,864	0
Foreign government bonds [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	$ 0	$ 0

Fair Value Disclosures (Details Textual) $ in Millions	Jul. 31, 2018 USD ($) investment
Debt Instrument [Line Items]
Investments in an unrealized loss positions (in investments) \| investment	188
Convertible Senior Notes, 1.250% [Member] \| Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt, fair value \| $	$ 310.5

Acquisition (Narrative) (Details) - USD ($) $ in Thousands				3 Months Ended					9 Months Ended	12 Months Ended
Acquisition (Narrative) (Details) - USD ($) $ in Thousands	Nov. 01, 2017	Feb. 16, 2017	Aug. 31, 2016	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Jul. 31, 2018	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Business Acquisition [Line Items]
Goodwill				$ 340,877				$ 141,851	$ 340,877	$ 340,877	$ 141,851	$ 30,080
Total revenues				240,260	$ 142,149	$ 160,226	$ 110,214	176,349		652,849	509,533	424,446
Net income				$ 58,777	$ (31,150)	$ (51,620)	$ (2,750)	$ 23,775		(26,743)	18,072	14,976
Cyence, Inc.
Business Acquisition [Line Items]
Goodwill, Acquired During Period										198,929
Total preliminary purchase consideration	$ 260,349
Cash consideration paid at close	146,651
Equity consideration	113,700
Compensation agreements	37,600
Compensation agreements, purchase price allocation	18,200
Compensation agreements, post acquisition services	19,400
Goodwill	$ 198,929
Total revenues									11,000
Net income									$ 20,300
Cyence, Inc. \| General and administrative
Business Acquisition [Line Items]
Acquisition-related costs										$ 5,200
ISCS [Member]
Business Acquisition [Line Items]
Goodwill, Acquired During Period											96,337
Total preliminary purchase consideration		$ 160,000
Cash consideration paid at close		154,900
Goodwill		96,431
Indemnification asset		2,000
ISCS [Member] \| General and administrative
Business Acquisition [Line Items]
Acquisition-related costs		$ 1,100
FirstBest
Business Acquisition [Line Items]
Goodwill, Acquired During Period											15,434
Total preliminary purchase consideration			$ 37,800
Goodwill			15,434
FirstBest \| General and administrative
Business Acquisition [Line Items]
Acquisition-related costs			$ 1,200								$ 900	$ 300

Acquisition (Schedule of Preliminary Purchase Consideration) (Details) - Cyence, Inc. $ in Thousands	Nov. 01, 2017 USD ($)
Business Acquisition [Line Items]
Cash consideration paid at close	$ 146,651
Equity issued to shareholders	102,493
Issuance of replacement awards	11,205
Total preliminary purchase consideration	$ 260,349

Acquisition (Purchase Price Allocation) (Details) - USD ($) $ in Thousands				12 Months Ended
	Nov. 01, 2017	Feb. 16, 2017	Aug. 31, 2016	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Business Acquisition [Line Items]
Goodwill				$ 340,877	$ 141,851	$ 30,080
Cyence, Inc.
Business Acquisition [Line Items]
Acquired assets, net of assumed liabilities	$ 9,620
Goodwill	198,929
Total purchase price	260,349
Goodwill, Acquired During Period				$ 198,929
Cyence, Inc. \| Developed technology
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 28,400
Estimated useful lives (in years)	5 years
Cyence, Inc. \| Customer contracts and related relationships
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 17,700
Estimated useful lives (in years)	5 years
Cyence, Inc. \| Order backlog
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 3,200
Estimated useful lives (in years)	2 years
Cyence, Inc. \| Trademarks
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 2,500
Estimated useful lives (in years)	7 years
ISCS [Member]
Business Acquisition [Line Items]
Acquired assets, net of assumed liabilities		$ 4,530
Deferred tax assets, net		171
Goodwill		96,431
Total purchase price		154,932
Goodwill, Acquired During Period					96,337
ISCS [Member] \| Developed technology
Business Acquisition [Line Items]
Finite lived intangible assets acquired		$ 43,300
Estimated useful lives (in years)		4 years
ISCS [Member] \| Customer contracts and related relationships
Business Acquisition [Line Items]
Finite lived intangible assets acquired		$ 7,000
Estimated useful lives (in years)		9 years
ISCS [Member] \| Order backlog
Business Acquisition [Line Items]
Finite lived intangible assets acquired		$ 3,500
Estimated useful lives (in years)		4 years
FirstBest
Business Acquisition [Line Items]
Acquired assets, net of assumed liabilities			$ 2,518
Deferred tax assets, net			4,406
Goodwill			15,434
Total purchase price			37,758
Goodwill, Acquired During Period					$ 15,434
FirstBest \| Developed technology
Business Acquisition [Line Items]
Finite lived intangible assets acquired			$ 8,000
Estimated useful lives (in years)			5 years
FirstBest \| Customer contracts and related relationships
Business Acquisition [Line Items]
Finite lived intangible assets acquired			$ 6,500
Estimated useful lives (in years)			9 years
FirstBest \| Order backlog
Business Acquisition [Line Items]
Finite lived intangible assets acquired			$ 900
Estimated useful lives (in years)			3 years

Acquisition (Pro Forma Information) (Details) - Cyence, Inc. - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Business Acquisition [Line Items]
Pro forma revenues	$ 657,781	$ 519,351
Pro forma net income (loss)	$ (29,696)	$ (12,899)
Pro forma net loss per share -- basic (in dollars per share)	$ (0.38)	$ (0.17)
Pro forma net loss per share - diluted (in dollars per share)	$ (0.29)	$ (0.13)

Balance Sheet Components (Details 1) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Property and equipment
Computer hardware	$ 24,879	$ 21,408
Purchased software	4,664	3,855
Capitalized software development costs	3,978	1,065
Furniture and fixtures	4,217	3,253
Leasehold improvements	10,751	8,251
Total property and equipment	48,489	37,832
Less accumulated depreciation	(29,894)	(23,456)
Property and equipment, net	$ 18,595	$ 14,376

Balance Sheet Components (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Goodwill [Roll Forward]
Goodwill, Beginning of Period	$ 141,851	$ 30,080
Changes in carrying value	97
Goodwill, End of Period	340,877	141,851
FirstBest
Goodwill [Roll Forward]
Addition		15,434
ISCS [Member]
Goodwill [Roll Forward]
Addition		$ 96,337
Cyence, Inc.
Goodwill [Roll Forward]
Addition	$ 198,929

Balance Sheet Components (Details 3) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Cost	$ 140,700	$ 88,900
Accumulated Amortization	45,046	17,585
Total future amortization expense	95,654	71,315
Acquired Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	93,600	65,200
Accumulated Amortization	34,189	14,710
Total future amortization expense	59,411	50,490
Customer contracts and related relationships
Finite-Lived Intangible Assets [Line Items]
Cost	35,700	18,000
Accumulated Amortization	6,633	1,683
Total future amortization expense	29,067	16,317
Partner relationships
Finite-Lived Intangible Assets [Line Items]
Cost	200	200
Accumulated Amortization	52	30
Total future amortization expense	148	170
Trademarks
Finite-Lived Intangible Assets [Line Items]
Cost	2,500	0
Accumulated Amortization	268	0
Total future amortization expense	2,232	0
Order backlog
Finite-Lived Intangible Assets [Line Items]
Cost	8,700	5,500
Accumulated Amortization	3,904	1,162
Total future amortization expense	$ 4,796	$ 4,338

Balance Sheet Components (Details 4) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Balance Sheet Related Disclosures [Abstract]
2017	$ 29,112
2018	26,834
2019	19,965
2020	11,143
2021	3,799
Thereafter	4,801
Total future amortization expense	$ 95,654	$ 71,315

Balance Sheet Components (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Allowance for Doubtful Accounts Receivable [Roll Forward]
Allowance for Doubtful Accounts as of July 31, 2017	$ 0
Charges to bad debt and revenue reserves	1,062	$ 0	$ 0
Write-offs, net	0
Allowance for Doubtful Accounts as of July 31, 2018	$ 1,062	$ 0

Balance Sheet Components (Details 6) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Accrued employee compensation
Accrued bonuses	$ 31,273	$ 26,581
Accrued commission	7,287	5,228
Accrued vacation	13,132	10,873
Accrued salaries, payroll taxes and benefits	8,443	6,200
Total	$ 60,135	$ 48,882

Balance Sheet Components Balance Sheet Components (Details 7) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Deferred Revenue Arrangement [Line Items]
Total deferred revenue, current	$ 127,107	$ 95,994
Deferred revenue, non-current	23,758	19,892
Total	150,865	115,886
Deferred license and other revenue
Deferred Revenue Arrangement [Line Items]
Total deferred revenue, current	53,755	25,769
Deferred maintenance revenue
Deferred Revenue Arrangement [Line Items]
Total deferred revenue, current	52,010	46,562
Deferred services revenue
Deferred Revenue Arrangement [Line Items]
Total deferred revenue, current	$ 21,342	$ 23,663

Balance Sheet Components (Details 8) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ (5,796)	$ (6,593)
Foreign currency translation adjustments	(2,163)	714
Unrealized loss on available-for-sale securities	(22)	(151)
Tax effect	233	234
Balance at end of period	(7,748)	(5,796)
Foreign Currency Items
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(5,630)	(6,809)
Foreign currency translation adjustments	(1,567)	1,179
Unrealized loss on available-for-sale securities	0	0
Tax effect	0	0
Balance at end of period	(7,197)	(5,630)
Unrealized gain (loss) on available-for-sale securities
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(166)	216
Foreign currency translation adjustments	(596)	(465)
Unrealized loss on available-for-sale securities	(22)	(151)
Tax effect	233	234
Balance at end of period	$ (551)	$ (166)

Balance Sheet Components (Details Textual) - USD ($)	12 Months Ended
Balance Sheet Components (Details Textual) - USD ($)	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Deferred Revenue Arrangement [Line Items]
Amortization of Intangible Assets	$ 27,500,000	$ 12,100,000	$ 2,300,000
Property and equipment pledged as collateral	0	0
Depreciation expense	7,700,000	6,600,000	$ 6,500,000
Capitalized software development costs	3,978,000	1,065,000
Amortization	400,000
Other assets	22,525,000	$ 20,104,000
Preferred Stock [Member] \| Other Noncurrent Assets [Member]
Deferred Revenue Arrangement [Line Items]
Carrying value	$ 10,700,000

Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					12 Months Ended
	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Numerator:
Net income	$ 58,777	$ (31,150)	$ (51,620)	$ (2,750)	$ 23,775	$ (26,743)	$ 18,072	$ 14,976
Net income per share:
Basic (in USD per share)	$ 0.73	$ (0.40)	$ (0.67)	$ (0.04)	$ 0.32	$ (0.34)	$ 0.24	$ 0.21
Diluted (in USD per share)	$ 0.72	$ (0.40)	$ (0.67)	$ (0.04)	$ 0.31	$ (0.34)	$ 0.24	$ 0.20
Weighted average shares used in computing net income per share:
Basic (in shares)						77,709,592	73,994,577	72,026,694
Weighted average effect of diluted stock options (in shares)						0	544,520	859,855
Weighted average effect of dilutive restricted stock units (in shares)						0	789,246	879,411
Diluted (in shares)						77,709,592	75,328,343	73,765,960

Net Income (Loss) per Share (Details 1) - shares	12 Months Ended
Net Income (Loss) per Share (Details 1) - shares	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Stock options to purchase common stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding shares of common stock equivalents (in shares)	597,476	24,128	77,737
Restricted stock units [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding shares of common stock equivalents (in shares)	3,161,157	88,582	22,994

Net Income (Loss) per Share Net Income (Loss) per Share (Details Textual)	Jul. 31, 2018 $ / shares
Earnings Per Share [Abstract]
Convertible conversion price (in dollars per share)	$ 113.75

Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2018 USD ($) day shares	Jul. 31, 2018 USD ($) $ / shares	Jul. 31, 2017 USD ($)	Jul. 31, 2016 USD ($)
Debt Instrument [Line Items]
Principal		$ 400,000
Proceeds from issuance of convertible senior notes, net of issuance costs	$ 387,200	$ 387,239	$ 0	$ 0
Convertible conversion price (in dollars per share) \| $ / shares		$ 113.75
Senior Notes [Member] \| Convertible Debt [Member]
Debt Instrument [Line Items]
Principal	$ 400,000
Stated interest rate	1.25%
Proceeds from issuance of convertible senior notes, net of issuance costs		$ 387,200
Senior Notes [Member] \| Convertible Debt [Member] \| On or after October 15, 2024
Debt Instrument [Line Items]
Number of shares issuable, per 1,000 principal converted (in shares) \| shares	8.7912
Convertible conversion price (in dollars per share) \| $ / shares		$ 113.75
Senior Notes [Member] \| Convertible Debt [Member] \| On or after March 20, 2022
Debt Instrument [Line Items]
Debt instrument, redemption. percentage	100.00%
Threshold percentage of stock price trigger	130.00%
Threshold trading days \| day	20
Threshold consecutive trading days \| day	3
Conversion notice period	30 days
Senior Notes [Member] \| Convertible Debt [Member] \| Over-Allotment Option [Member]
Debt Instrument [Line Items]
Principal	$ 40,000

Convertible Senior Notes (Schedule of Net Carrying Value) (Details) $ in Thousands	Jul. 31, 2018 USD ($)
Debt Disclosure [Abstract]
Principal	$ 400,000
Less: unamortized debt discount and issuance costs
Unamortized debt discount	85,343
Debt issuance cost	9,529
Net carrying amount	$ 305,128

Convertible Senior Notes (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Debt Instrument [Line Items]
Contractual interest expense	$ 6,442	$ 13	$ 0
Senior Notes [Member]
Debt Instrument [Line Items]
Contractual interest expense	1,903
Amortization of debt discount	4,134
Amortization of debt issuance costs	378
Total	$ 6,415
Effective interest rate of the liability component	5.53%

Convertible Senior Notes (Capped Call) (Details) shares in Millions, $ in Millions	Jul. 31, 2018 USD ($) $ / Unit shares
Debt Disclosure [Abstract]
Derivative amount \| $	$ 37.2
Strike price (in dollars per share)	113.75
Derivative, cap price (in dollars per share)	153.13
Derivative, number of shares covered (in shares) \| shares	3.5

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Dec. 31, 2017	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2015
Lease Obligations
2019	$ 10,718
2020	10,713
2021	14,615
2022	13,295
2023	12,507
2024 and thereafter	85,156
Total	147,004	$ 126,700
Royalty Obligations
2019	1,761
2020	698
2021	101
2022	0
2023	0
2024 and thereafter	0
Total	2,560
Purchase Commitments
2019	60,298
2020	8,181
2021	1,368
2022	253
2023	0
2024 and thereafter	0
Total	70,100
Long-term Debt, Fiscal Year Maturity [Abstract]
2019	5,028
2020	5,000
2021	5,000
2022	5,000
2023	5,000
2024 and thereafter	410,000
Total	435,028
Total
2019	77,805
2020	24,592
2021	21,084
2022	18,548
2023	17,507
2024 and thereafter	495,156
Total	654,692
Unrecognized tax benefits	$ 10,321		$ 9,346	$ 7,687	$ 6,109

Commitments and Contingencies (Details Textual) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2017 USD ($)	Jul. 31, 2018 USD ($) claim	Jul. 31, 2017 USD ($) claim	Jul. 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Lease expense for all worldwide facilities and equipment		$ 8,700	$ 6,800	$ 5,700
Leases, term of contract	10 years 6 months
Total payments committed under the lease	$ 126,700	$ 147,004
Line of credit facility, capacity available for specific purpose other than for trade purchases	$ 1,800
Outstanding claims \| claim		0	0

Stockholders' Equity and Stock-based Compensation (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 89,176	$ 72,695	$ 66,409
Net impact of deferred stock-based compensation	438	(901)	(278)
Total stock-based compensation expense	89,614	71,794	66,131
Stock-based compensation expense
Total stock-based compensation expense	89,614	71,794	66,131
Tax benefit from stock-based compensation	24,481	23,014	20,092
Total stock-based compensation expense, net of tax effect	65,133	48,780	46,039
Cost of License Revenues [Member]
Stock-based compensation expense
Total stock-based compensation expense	1,002	373	433
Cost of maintenance revenues [Member]
Stock-based compensation expense
Total stock-based compensation expense	1,886	1,694	1,491
Cost of services revenues [Member]
Stock-based compensation expense
Total stock-based compensation expense	21,856	18,622	17,878
Research and development [Member]
Stock-based compensation expense
Total stock-based compensation expense	25,440	18,123	15,555
Sales and marketing [Member]
Stock-based compensation expense
Total stock-based compensation expense	18,387	16,663	15,090
General and administrative
Stock-based compensation expense
Total stock-based compensation expense	$ 21,043	$ 16,319	$ 15,684

Stockholders' Equity and Stock-based Compensation (Details 2) $ in Thousands	12 Months Ended
	Jul. 31, 2018 USD ($)
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized Expense	$ 157,869
Restricted stock units RSUs [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized Expense	$ 5,832
Average Expected Recognition Period (in years)	2 years 2 months 12 days
Stock options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized Expense	$ 152,037
Average Expected Recognition Period (in years)	2 years 2 months 12 days

Stockholders' Equity and Stock-based Compensation (Details 3) - Restricted stock units RSUs [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Number of RSUs Outstanding (in shares)
Balance at beginning of period (in shares)	2,634,085	2,727,724	2,882,674
Granted (in shares)	1,814,084	1,542,235	1,586,192
Released (in shares)	(1,260,758)	(1,372,770)	(1,408,746)
Canceled (in shares)	(255,256)	(263,104)	(332,396)
Balance at end of period (in shares)	2,932,155	2,634,085	2,727,724
Expected to vest as of July 31, 2016 (in shares)	2,932,155
Weighted Average Grant Date Fair Value (in dollars per share)
Balance at beginning of period (in USD per share)	$ 56.62	$ 50.08	$ 42.65
Granted (in USD per share)	79.65	61.22	54.99
Released (in USD per share)	56.92	49.38	41.21
Canceled (in USD per share)	63.66	53.53	46.71
Balance at end of period (in USD per share)	69.43	$ 56.62	$ 50.08
Expected to vest as of July 31, 2016 (in USD per share)	$ 69.43
Aggregate Intrinsic Value (1)
Balance at beginning of period	$ 190,076	$ 167,673	$ 170,222
Released	103,957	81,427	78,763
Balance at end of period	252,752	$ 190,076	$ 167,673
Expected to vest as of July 31, 2018	$ 252,752

Stockholders' Equity and Stock-based Compensation (Details 4) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2015
Number of Stock Options Outstanding (in shares)
Balance at beginning of period (in shares)	555,636	1,158,572	1,822,062
Granted (in shares)	137,057	0	10,000
Exercised (in shares)	(150,924)	(594,936)	(652,832)
Canceled (in shares)	(4,705)	(8,000)	(20,658)
Balance at end of period (in shares)	537,064	555,636	1,158,572	1,822,062
Vested and expected to vest as of July 31, 2016 (in shares)	537,064
Exercisable as of July 31, 2016 (in shares)	443,782
Weighted Average Exercise Price (in dollars per share)
Balance at beginning of period (in dollars per share)	$ 22.17	$ 15.45	$ 14.29
Granted (in dollars per share)	10.23	0.00	54.00
Exercised (in dollars per share)	13.32	9.35	12.01
Canceled (in dollars per share)	40.05	2.74	40.86
Balance at end of period (in dollars per share)	21.45	$ 22.17	$ 15.45	$ 14.29
Vested and expected to vest as of July 31, 2016 (in dollars per share)	21.45
Exercisable as of July 31, 2016 (in dollars per share)	$ 23.04
Weighted Average Remaining Contractual Life (in years)
Weighted average remaining contractual life	4 years 3 months 18 days	4 years	4 years	4 years 10 months 24 days
Vested and expected to vest as of July 31, 2017	4 years 3 months 18 days
Exercisable as of July 31, 2017	3 years 6 months
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 34,774	$ 27,777	$ 53,316	$ 81,548
Exercised	10,710	$ 30,636	$ 29,186
Vested and expected to vest as of July 31, 2017	34,774
Exercisable as of July 31, 2017	$ 28,028

Stockholders' Equity and Stock-based Compensation (Details 6) - $ / shares	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
TSR PSUs [Member]
Summary of assumptions for fair value of employee stock option estimates
Expected life (in years)	2 years 10 months 17 days
Risk-free interest rate	1.40%
Risk-free interest rate, minimum (as a percent)	0.89%
Risk-free interest rate, maximum (as a percent)	1.34%
Expected volatility of the Company	28.00%
Expected volatility, minimum (as a percent)	30.20%
Expected volatility, maximum (as a percent)	31.50%
Average expected volatility of the peer companies in the S&P Index	34.70%
Average expected volatility of the peer companies in the S&P Index, minimum (as a percent)	36.90%
Average expected volatility of the peer companies in the S&P Index, maximum (as a percent)	37.00%
Expected dividend yield (as a percent)	0.00%	0.00%
TSR PSUs [Member] \| Minimum [Member]
Summary of assumptions for fair value of employee stock option estimates
Expected life (in years)	2 years 7 months 29 days
TSR PSUs [Member] \| Maximum [Member]
Summary of assumptions for fair value of employee stock option estimates
Expected life (in years)	2 years 10 months 17 days
Stock options [Member]
Summary of assumptions for fair value of employee stock option estimates
Expected life (in years)	1 year 3 months 8 days		4 years 10 months 25 days
Risk-free interest rate, minimum (as a percent)	1.50%		1.50%
Expected volatility, minimum (as a percent)	24.10%		38.80%
Expected dividend yield (as a percent)	0.00%		0.00%
Weighted average grant date fair value of options granted (in dollars per share)	$ 67.90		$ 19.18

Stockholders' Equity and Stock-based Compensation (Details 7) - shares	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2015
Common Stock Reserved for Issuance (in shares)
Exercise of stock options to purchase common stock	537,064	555,636	1,158,572	1,822,062
Shares available for grant under stock plans	21,592,494	18,453,674
Common Stock, Capital Shares Reserved for Future Issuance	25,061,713	21,643,395
Stock options [Member]
Common Stock Reserved for Issuance (in shares)
Exercise of stock options to purchase common stock	537,064	555,636
Restricted stock units RSUs [Member]
Common Stock Reserved for Issuance (in shares)
Vesting of restricted stock units	2,932,155	2,634,085	2,727,724	2,882,674

Stockholders' Equity and Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016	Sep. 14, 2011
Class of Stock [Line Items]
Share price (in dollars per share)	$ 86.20	$ 72.16	$ 61.47
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares outstanding (in shares)	80,611,698	75,007,625
Restricted stock units RSUs [Member]
Class of Stock [Line Items]
Period of time based vesting	4 years
Share based compensation expense, performance based awards	$ 19.1	$ 9.4	$ 6.9
Stock Plan 2011 [Member]
Class of Stock [Line Items]
Number of shares authorized				7,500,000
Maximum increase in percentage of outstanding number of shares of the Company's common stock (as a percent)	5.00%
Performance Shares [Member]
Class of Stock [Line Items]
Period of time based vesting	4 years
TSR PSUs [Member]
Class of Stock [Line Items]
Period of time based vesting	3 years

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Company's income (loss) before provision for income taxes
Income before provision for income taxes	$ (8,276)	$ 28,526	$ 20,782
Domestic [Member]
Company's income (loss) before provision for income taxes
Income before provision for income taxes	(13,501)	21,723	11,209
International [Member]
Company's income (loss) before provision for income taxes
Income before provision for income taxes	$ 5,225	$ 6,803	$ 9,573

Income Taxes (Details 1) - USD ($) $ in Thousands	3 Months Ended					12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Thousands	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Current:
U.S. Federal						$ 2,047	$ 6,339	$ 4,936
State						219	1,829	1,006
Foreign						2,203	3,595	4,350
Total current						4,469	11,763	10,292
Deferred:
U.S. Federal						15,766	(686)	(4,867)
State						(1,460)	(429)	631
Foreign						(308)	(194)	(250)
Total deferred						13,998	(1,309)	(4,486)
Total provision for income taxes	$ (9,376)	$ 3,461	$ 50,870	$ (26,488)	$ 15,242	$ 18,467	$ 10,454	$ 5,806

Income Taxes (Details 2) - USD ($) $ in Thousands	3 Months Ended					12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Thousands	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Effective Income Tax Reconciliation
Statutory Federal income tax						$ (2,224)	$ 9,984	$ 7,274
State taxes, net of Federal benefit						(993)	806	1,261
Share-based compensation						(8,715)	2,517	2,670
Non-deductible officers' compensation						3,230	959	0
Foreign income taxed at different rates						1,022	(819)	(1,190)
Research tax credits						(5,822)	(2,377)	(3,827)
Re-measurement of U.S. deferred taxes						36,125	0	0
Non-deductible acquisition costs						1,270	270	354
Domestic production activity deduction						0	(1,370)	(1,189)
Permanent differences and others						666	484	453
Change in valuation allowance						(6,092)	0	0
Total provision for income taxes	$ (9,376)	$ 3,461	$ 50,870	$ (26,488)	$ 15,242	$ 18,467	$ 10,454	$ 5,806

Income Taxes (Details 3) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Tax effects of temporary differences
Accruals and reserves	$ 12,129	$ 11,612
Stock-based compensation	7,658	8,519
Deferred revenue	4,023	3,848
Property and equipment	1,268	1,189
Net operating loss carryforwards	56,668	16,720
Tax credits	60,450	11,919
Total deferred tax assets	142,196	53,807
Less valuation allowance	28,541	12,583
Net deferred tax assets	113,655	41,224
Intangible assets	11,461	3,794
Convertible debt	11,567	0
Unremitted foreign earnings	258	0
Total deferred tax liabilities	23,286	3,794
Deferred tax assets, net	90,369	37,430
Less foreign deferred revenue	69	0
Total net deferred tax assets	$ 90,300	$ 37,430

Income Taxes (Details 4) $ in Thousands	12 Months Ended
Income Taxes (Details 4) $ in Thousands	Jul. 31, 2018 USD ($)
Operating Loss Carryforwards [Line Items]
Research and Development Credits Carryforwards	$ 61,605
U.S. federal [Member]
Operating Loss Carryforwards [Line Items]
Research and Development Credits Carryforwards	33,074
California [Member]
Operating Loss Carryforwards [Line Items]
Research and Development Credits Carryforwards	$ 28,531

Income Taxes (Details 5) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 5) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Summarizes the activity related to unrecognized tax benefits
Unrecognized tax benefit - beginning of period	$ 9,346	$ 7,687	$ 6,109
Gross increases - prior period tax positions	729	712	177
Gross decreases - prior period tax positions	(878)	(691)	(216)
Gross increases - current period tax positions	1,124	1,638	1,617
Unrecognized tax benefit - end of period	$ 10,321	$ 9,346	$ 7,687

Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Income Taxes (Additional Textual) [Abstract]
Percentage of statutory federal income tax rate	26.90%	35.00%	35.00%
Provisional income tax expense (benefit)	$ 36,000
Deferred tax liability, provisional income tax (expense) benefit	6,100
Valuation allowance	28,541	$ 12,583
Unrealized excess tax benefits resulting from exercises of stock options	87,400
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	15,900
Undistributed earnings from certain foreign subsidiaries	258	$ 0
Increase in long term liability associated with unrecognized tax benefits	1,000
Unrecognized tax benefits	5,400
U.S. federal [Member]
Income Taxes (Additional Textual) [Abstract]
Operating loss carryforwards	$ 218,000
R&D Credits expiration dates	2023
California [Member]
Income Taxes (Additional Textual) [Abstract]
Operating loss carryforwards	$ 67,000
State and Local Jurisdiction [Member]
Income Taxes (Additional Textual) [Abstract]
Operating loss carryforwards	109,400
Accounting Standards Update 2016-09 [Member]
Income Taxes (Additional Textual) [Abstract]
Valuation allowance	600
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 600

Defined Contributions and Other Postretirement Plans (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Employee 401(k) Plan (Textual) [Abstract]
Maximum Annual Contribution Per Employee, Percent	60.00%
Maximum Annual Contribution Per Employee, Amount	$ 5
Company's contributions	$ 8,700	$ 7,100	$ 5,500

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended					12 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Revenue:
Total revenues	$ 240,260	$ 142,149	$ 160,226	$ 110,214	$ 176,349	$ 652,849	$ 509,533	$ 424,446
United States [Member]
Revenue:
Total revenues						409,729	301,083	230,935
Canada [Member]
Revenue:
Total revenues						45,591	50,956	44,717
Other Americas [Member]
Revenue:
Total revenues						19,154	19,447	18,114
Americas [Member]
Revenue:
Total revenues						474,474	371,486	293,766
United Kingdom [Member]
Revenue:
Total revenues						36,653	32,554	34,031
Other EMEA [Member]
Revenue:
Total revenues						75,178	48,727	41,914
EMEA [Member]
Revenue:
Total revenues						111,831	81,281	75,945
APAC [Member]
Revenue:
Total revenues						$ 66,544	$ 56,766	$ 54,735

Segment Information (Details 1) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Property and equipment, net by geographic region
Property and equipment, net	$ 455,126	$ 227,542
North America [Member]
Property and equipment, net by geographic region
Property and equipment, net	449,588	224,667
Europe [Member]
Property and equipment, net by geographic region
Property and equipment, net	5,491	2,747
Asia Pacific [Member]
Property and equipment, net by geographic region
Property and equipment, net	$ 47	$ 128

Segment Information (Details Textual)	12 Months Ended
Segment Information (Details Textual)	Jul. 31, 2018 segment country	Jul. 31, 2017 country	Jul. 31, 2016 country
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments \| segment	1
Number of Countries Concentration of Revenue \| country	0	0	0
Minimum [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration Risk, Percentage	10.00%	10.00%	10.00%