0001528396-22-000129 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Oct. 31, 2022	Nov. 30, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2022
Document Transition Report	false
Entity File Number	001-35394
Entity Registrant Name	Guidewire Software, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-4468504
Entity Address, Address Line One	2850 S. Delaware St., Suite 400
Entity Address, City or Town	San Mateo
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94403
City Area Code	650
Local Phone Number	357-9100
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	GWRE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		81,876,197
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001528396
Current Fiscal Year End Date	--07-31

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 263,163	$ 606,303
Short-term investments	442,023	369,865
Accounts receivable, net of allowances of $285 and $359, respectively	88,273	143,797
Unbilled accounts receivable, net	90,742	71,515
Prepaid expenses and other current assets	59,355	61,223
Total current assets	943,556	1,252,703
Long-term investments	163,335	187,507
Unbilled accounts receivable, net	15,346	13,914
Property and equipment, net	79,040	80,740
Operating lease assets	86,519	90,287
Intangible assets, net	18,574	21,361
Goodwill	372,214	372,192
Deferred tax assets, net	218,769	191,461
Other assets	51,155	56,732
TOTAL ASSETS	1,948,508	2,266,897
CURRENT LIABILITIES:
Accounts payable	41,649	40,440
Accrued employee compensation	43,171	90,962
Deferred revenue, net	137,546	170,776
Other current liabilities	30,398	35,340
Total current liabilities	252,764	337,518
Lease liabilities	100,614	105,123
Convertible senior notes, net	395,891	358,216
Deferred revenue, net	7,155	7,500
Other liabilities	6,923	6,883
Total liabilities	763,347	815,240
STOCKHOLDERS’ EQUITY:
Common stock	8	8
Additional paid-in capital	1,682,722	1,755,476
Accumulated other comprehensive income (loss)	(23,963)	(19,845)
Retained earnings (accumulated deficit)	(473,606)	(283,982)
Total stockholders’ equity	1,185,161	1,451,657
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,948,508	$ 2,266,897

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Statement of Financial Position [Abstract]
Allowance for accounts receivable	$ 285	$ 359

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Revenue:
Total revenue	$ 195,282	$ 165,934
Cost of revenue:
Total cost of revenue	123,130	97,540
Gross profit:
Total gross profit	72,152	68,394
Operating expenses:
Research and development	58,170	55,124
Sales and marketing	46,468	41,005
General and administrative	42,067	37,642
Total operating expenses	146,705	133,771
Income (loss) from operations	(74,553)	(65,377)
Interest income	4,638	674
Interest expense	(1,674)	(4,794)
Other income (expense), net	(13,824)	1,183
Income (loss) before provision for (benefit from) income taxes	(85,413)	(68,314)
Provision for (benefit from) income taxes	(16,095)	(17,038)
Net income (loss)	$ (69,318)	$ (51,276)
Net income (loss) per share:
Basic (in dollars per share)	$ (0.83)	$ (0.62)
Diluted (in dollars per share)	$ (0.83)	$ (0.62)
Shares used in computing net income (loss) per share:
Basic (in shares)	83,320,967	83,225,743
Diluted (in shares)	83,320,967	83,225,743
Subscription and support
Revenue:
Total revenue	$ 99,068	$ 78,990
Cost of revenue:
Total cost of revenue	55,691	48,050
Gross profit:
Total gross profit	43,377	30,940
License
Revenue:
Total revenue	40,952	40,153
Cost of revenue:
Total cost of revenue	1,873	2,339
Gross profit:
Total gross profit	39,079	37,814
Services
Revenue:
Total revenue	55,262	46,791
Cost of revenue:
Total cost of revenue	65,566	47,151
Gross profit:
Total gross profit	$ (10,304)	$ (360)

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (69,318)	$ (51,276)
Foreign currency translation adjustments	(2,701)	(724)
Unrealized gains (losses) on available-for-sale securities	(1,644)	(1,118)
Tax benefit (expense) on unrealized gains (losses) on available-for-sale securities	443	251
Reclassification adjustment for realized gains (losses) included in net income (loss)	(216)	69
Total other comprehensive income (loss)	(4,118)	(1,522)
Comprehensive income (loss)	$ (73,436)	$ (52,798)

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Adoption of Accounting Standards Update ("ASU") 2020-06	Common stock	Additional paid-in capital	Additional paid-in capital Adoption of Accounting Standards Update ("ASU") 2020-06	Accumulated other comprehensive income (loss)	Retained earnings (accumulated deficit)	Retained earnings (accumulated deficit) Adoption of Accounting Standards Update ("ASU") 2020-06
Beginning balance (in shares) at Jul. 31, 2021			83,194,157
Beginning balance at Jul. 31, 2021	$ 1,544,894		$ 8	$ 1,617,204		$ (6,218)	$ (66,100)
Net loss	(51,276)						(51,276)
Issuance of common stock upon exercise of stock options (in shares)			1,518
Issuance of common stock upon exercise of stock options	17			17
Issuance of common stock upon vesting of RSUs (in shares)			335,653
Stock-based compensation	32,533			32,533
Repurchase and retirement of common stock (in shares)			(226,172)
Repurchase and retirement of common stock	(26,262)						(26,262)
Foreign currency translation adjustment	(724)					(724)
Unrealized gain (loss) on available-for-sale securities, net of tax	(868)					(868)
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)	69					69
Ending balance (in shares) at Oct. 31, 2021			83,305,156
Ending balance at Oct. 31, 2021	1,498,383		$ 8	1,649,754		(7,741)	(143,638)
Beginning balance (in shares) at Jul. 31, 2021			83,194,157
Beginning balance at Jul. 31, 2021	1,544,894		$ 8	1,617,204		(6,218)	(66,100)
Ending balance (in shares) at Jul. 31, 2022			84,084,209
Ending balance at Jul. 31, 2022	1,451,657	$ (28,309)	$ 8	1,755,476	$ (68,003)	(19,845)	(283,982)	$ 39,694
Net loss	(69,318)						(69,318)
Issuance of common stock upon vesting of RSUs (in shares)			373,380
Stock-based compensation	$ 35,249			35,249
Repurchase and retirement of common stock (in shares)	(226,172)		(2,581,478)
Repurchase and retirement of common stock	$ (200,000)			(40,000)			(160,000)
Foreign currency translation adjustment	(2,701)					(2,701)
Unrealized gain (loss) on available-for-sale securities, net of tax	(1,201)					(1,201)
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)	$ (216)					(216)
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2020-06 [Member]
Ending balance (in shares) at Oct. 31, 2022			81,876,111
Ending balance at Oct. 31, 2022	$ 1,185,161		$ 8	$ 1,682,722		$ (23,963)	$ (473,606)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (69,318)	$ (51,276)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	7,623	8,434
Amortization of debt discount and issuance costs	423	3,524
Amortization of contract costs	4,490	3,001
Stock-based compensation	35,096	32,240
Changes to allowance for credit losses and revenue reserves	(72)	35
Deferred income tax	(18,035)	(17,551)
Amortization of premium (accretion of discount) on available-for-sale securities, net	98	1,601
Other non-cash items affecting net income (loss)	34	131
Changes in operating assets and liabilities:
Accounts receivable	55,245	24,088
Unbilled accounts receivable	(20,659)	(6,137)
Prepaid expenses and other assets	(839)	(7,046)
Operating lease assets	3,768	2,879
Accounts payable	847	(1,333)
Accrued employee compensation	(45,548)	(62,637)
Deferred revenue	(33,575)	(30,456)
Lease liabilities	(4,441)	(3,386)
Other liabilities	(2,572)	(3,153)
Net cash provided by (used in) operating activities	(87,435)	(107,042)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities	(169,232)	(241,247)
Sales of available-for-sale securities	97,023	27,331
Maturities of available-for-sale securities	22,268	272,943
Purchases of property and equipment	(604)	(3,333)
Capitalized software development costs	(3,697)	(3,783)
Acquisition of strategic investments	(181)	0
Acquisition of business, net of acquired cash	0	(43,830)
Net cash provided by (used in) investing activities	(54,423)	8,081
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock upon exercise of stock options	0	17
Repurchase and retirement of common stock	(200,000)	(26,262)
Net cash provided by (used in) financing activities	(200,000)	(26,245)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(2,992)	(984)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(344,850)	(126,190)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period	614,686	384,910
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period	269,836	258,720
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	2,500	2,500
Cash paid for income taxes, net of tax refunds	1,314	717
Accruals for purchase of property and equipment	632	2,639
Accruals for capitalized software development costs	$ 257	$ 287

The Company and Summary of Significant Accounting Policies and Estimates

3 Months Ended

Oct. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Summary of Significant Accounting Policies and Estimates

Company

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

Basis of Presentation and Consolidation

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

These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes, together with management’s discussion and analysis of financial condition and results of operations, presented in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2022.

Reclassification

Effective as of the beginning of fiscal year 2023, the Company revised its allocation methodology and presentation of certain expenses. The change resulted in facilities expenses, information technology infrastructure and software expenses, and information security infrastructure and software expenses being allocated to all functional departments based on headcount, with the remaining previously allocated costs being recorded within general and administrative expenses. The impact was an increase in general and administrative expenses and a decrease in cost of revenue and other operating expense categories. Accordingly, prior period amounts have been reclassified to conform to the current period presentation in the Company's condensed consolidated financial statements and the accompanying notes presented herein.

Use of Estimates

In preparing the condensed consolidated financial statements and related disclosures in conformity with GAAP and pursuant to the rules and regulations of the SEC, the Company must make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ materially from these estimates.

Significant Accounting Policies

There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s consolidated financial statements included in its Annual Report on Form 10-K, except for those disclosed herein.

Convertible Senior Notes

In March 2018, the Company issued $400.0 million aggregate principal amount of 1.25% Convertible Senior Notes due 2025 (the “Convertible Senior Notes”). Prior to the adoption of ASU 2020-06 on August 1, 2022, upon 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 did 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 difference between the principal amount of the Convertible Senior Notes and the liability component was initially recorded as a debt discount and was amortized as interest expense using the effective interest method over the term of the Convertible Senior Notes. Refer to Recently Adopted Accounting Pronouncements section for the adoption impact of ASU 2020-06.

Restricted Cash

Unearned acquisition consideration holdback subject to service conditions is held in escrow and considered restricted cash. At October 31, 2022, $4.6 million was included in prepaid expenses and other current assets and $2.1 million was included in other assets in the condensed consolidated balance sheet.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, investments, accounts receivable, and unbilled 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 in the condensed consolidated balance sheets are in excess of amounts that are insured by the Federal Deposit Insurance Corporation.

No customer accounted for 10% or more of the Company's revenue in both the three months ended October 31, 2022, and 2021. One customer accounted for 10% or more of the Company's accounts receivable as of October 31, 2022, and no customer accounted for 10% or more of the Company's accounts receivable as of July 31, 2022.

Recently Adopted Accounting Pronouncements

Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

On August 1, 2022, the Company adopted ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments. In addition, this ASU amends the requirement for calculating diluted earnings per share for convertible instruments by using the “if-converted” method instead of the treasury stock method. The use of the “if-converted” method will not impact the Company's diluted earnings per share in the periods in which the Company has a net loss.

The Company adopted the ASU using the modified retrospective transition method, and the prior period condensed consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for that period. As a result of the adoption, the Company accounts for the Convertible Senior Notes as a single liability and no longer separately accounts for the liability and equity components. The adoption of this ASU also resulted in the de-recognition of a deferred tax liability, which represented a basis difference in the face value of the Convertible Senior Notes due to the previous allocation of a portion of the proceeds to the equity component. Additionally, the Company recorded a cumulative adjustment to decrease the beginning balance of the accumulated deficit on August 1, 2022, which represented a reversal in previously recorded amortization of debt discount through July 31, 2022.

The following table summarizes the adjustments made to the condensed consolidated balance sheet as of August 1, 2022 as a result of applying the modified retrospective adoption method (in thousands):


	Balances reported as of July 31, 2022		Cumulative effect adjustment due to adoption of ASU 2020-06		Adjusted beginning balance as of August 1, 2022
Deferred tax assets, net	$	191,461	$	8,944	$	200,405
Convertible senior notes, net	(358,216)		(37,253)		(395,469)
Additional paid-in capital	(1,755,476)		68,003		(1,687,473)
Accumulated deficit	283,982		(39,694)		244,288

Other Accounting Pronouncements

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

Revenue

3 Months Ended

Oct. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Disaggregation of Revenue

Revenue by license or service type is as follows (in thousands):


	Three Months Ended October 31,
	2022		2021
Subscription and support
Subscription	$	78,977	$	57,129
Support	20,091		21,861
License
Term license	40,889		40,105
Perpetual license	63		48
Services	55,262		46,791
Total revenue	$	195,282	$	165,934

Revenue by revenue type and by geography is as follows (in thousands):


	Three Months Ended October 31, 2022
	Subscription and support		License		Services		Total

United States	$	67,081	$	17,509	$	38,525	$	123,115
Canada	16,051		3,693		6,052		25,796
Other Americas	1,475		320		422		2,217
Total Americas	84,607		21,522		44,999		151,128
United Kingdom	2,643		4,852		655		8,150
Other EMEA	6,285		5,573		7,239		19,097
Total EMEA	8,928		10,425		7,894		27,247
Total APAC	5,533		9,005		2,369		16,907
Total revenue	$	99,068	$	40,952	$	55,262	$	195,282


	Three Months Ended October 31, 2021
	Subscription and support		License		Services		Total

United States	$	53,023	$	18,453	$	32,663	$	104,139
Canada	11,941		5,813		2,358		20,112
Other Americas	1,039		237		708		1,984
Total Americas	66,003		24,503		35,729		126,235
United Kingdom	2,333		5,832		1,094		9,259
Other EMEA	5,217		1,407		6,395		13,019
Total EMEA	7,550		7,239		7,489		22,278
Total APAC	5,437		8,411		3,573		17,421
Total revenue	$	78,990	$	40,153	$	46,791	$	165,934

No country or region, other than those presented above, accounted for more than 10% of revenue during the three months ended October 31, 2022 and 2021.

Customer Contract – Related Balance Sheet Amounts

Amounts related to customer contract-related arrangements are included on the condensed consolidated balance sheets as follows (in thousands):


	October 31, 2022		July 31, 2022
Unbilled accounts receivable, net	$	106,088	$	85,429
Contract costs, net	$	41,352	$	44,235
Deferred revenue, net	$	144,701	$	178,276

As of October 31, 2022 and July 31, 2022, there was no allowance for credit losses associated with unbilled accounts receivable.

Contract costs

The current portion of contract costs of $14.6 million and $14.8 million is included in prepaid and other current assets in the Company’s condensed consolidated balance sheets as of October 31, 2022 and July 31, 2022, respectively. The non-current portion of contract costs of $26.8 million and $29.4 million is included in other assets in the Company’s condensed consolidated balance sheets as of October 31, 2022 and July 31, 2022, respectively. The Company amortized $4.5 million and $3.0 million of contract costs during the three months ended October 31, 2022 and 2021, respectively.

Deferred revenue

During the three months ended October 31, 2022, the Company recognized revenue of approximately $81.9 million related to the Company’s deferred revenue balance reported as of July 31, 2022.

Remaining Performance Obligations

The aggregate amount of consideration allocated to remaining performance obligations either not satisfied or partially satisfied was approximately $1.1 billion as of October 31, 2022. Subscription services are typically satisfied over three to five years, support services are generally satisfied within one year, and professional services are typically satisfied within one year. Professional services under time and material contracts are not included in the remaining performance obligations calculation as these arrangements can be cancelled at any time.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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-Section 50
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-Subparagraph (a)
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-Publisher FASB
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-Topic 606
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
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+ Details

Fair Value of Financial Instruments

3 Months Ended

Oct. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

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


	October 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Commercial paper	$	177,719	$	—	$	—	$	177,719
Corporate bonds	302,449		7		(5,973)		296,483
Certificates of deposit	54,997		—		—		54,997
U.S. Government bonds	67,793		6		(1,760)		66,039
Money market funds	67,752		—		—		67,752
U.S. Government agency securities	49,354		—		(642)		48,712
Asset-backed securities	50,438		2		(786)		49,654
Foreign government bonds	10,346		—		(456)		9,890

Total	$	780,848	$	15	$	(9,617)	$	771,246


	July 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Commercial paper	$	197,998	$	—	$	—	$	197,998
Corporate bonds	320,474		8		(4,880)		315,602
Certificates of deposit	43,715		—		—		43,715
U.S. Government bonds	47,014		—		(1,312)		45,702
Money market funds	349,492		—		—		349,492
U.S. Government agency securities	37,572		—		(586)		36,986
Asset-backed securities	54,782		—		(611)		54,171
Foreign government bonds	15,109		—		(361)		14,748
Municipal bonds	205		—		—		205
Total	$	1,066,361	$	8	$	(7,750)	$	1,058,619

The Company does not consider any portion of the unrealized losses at October 31, 2022 to be credit losses. The Company has recorded the securities at fair value in its condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss). The amount of unrealized 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 are presented in the condensed consolidated statements of comprehensive income (loss).

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


	October 31, 2022
	Less Than 12 Months		12 Months or Greater		Total
Commercial paper	$	177,719	$	—	$	177,719
Corporate bonds	222,767		73,716		296,483
Certificates of deposit	54,997		—		54,997
U.S. Government bonds	30,490		35,549		66,039
Money market funds	67,752		—		67,752
U.S. Government agency securities	44,880		3,832		48,712
Asset-backed securities	1,427		48,227		49,654
Foreign government bonds	7,879		2,011		9,890

Total	$	607,911	$	163,335	$	771,246

Fair Value Measurement

Available-for-sale investments

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


	October 31, 2022
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Commercial paper	$	—	$	77,178	$	—	$	77,178
Certificates of deposit	—		3,000		—		3,000
Money market funds	67,752		—		—		67,752
U.S. Government agency securities	—		17,958		—		17,958
Total cash equivalents	67,752		98,136		—		165,888
Short-term investments:
Commercial paper	—		100,541		—		100,541
Corporate bonds	—		222,767		—		222,767
Certificates of deposit	—		51,997		—		51,997
U.S. Government bonds	—		30,490		—		30,490
U.S. Government agency securities	—		26,922		—		26,922
Asset-backed securities	—		1,427		—		1,427
Foreign government bonds	—		7,879		—		7,879

Total short-term investments	—		442,023		—		442,023
Long-term investments:

Corporate bonds	—		73,716		—		73,716
U.S. Government bonds	—		35,549		—		35,549
U.S. Government agency securities	—		3,832		—		3,832
Asset-backed securities	—		48,227		—		48,227
Foreign government bonds	—		2,011		—		2,011
Total long-term investments	—		163,335		—		163,335
Total	$	67,752	$	703,494	$	—	$	771,246


	July 31, 2022
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Commercial paper	$	—	$	132,066	$	—	$	132,066
Certificates of deposit	—		9,689		—		9,689
Money market funds	349,492		—		—		349,492
U.S. Government agency securities	—		10,000		—		10,000
Total cash equivalents	349,492		151,755		—		501,247
Short-term investments:
Commercial paper	—		65,932		—		65,932
Corporate bonds	—		203,960		—		203,960
Certificates of deposit	—		34,026		—		34,026
U.S. Government bonds	—		25,429		—		25,429
U.S. Government agency securities	—		26,986		—		26,986
Asset-backed securities	—		8,627		—		8,627
Foreign government bonds	—		4,700		—		4,700
Municipal bonds	—		205		—		205
Total short-term investments	—		369,865		—		369,865
Long-term investments:
Corporate bonds	—		111,642		—		111,642
U.S. Government bonds	—		20,273		—		20,273
Asset-backed securities	—		45,544		—		45,544
Foreign government bonds	—		10,048		—		10,048
Total long-term investments	—		187,507		—		187,507
Total	$	349,492	$	709,127	$	—	$	1,058,619

Convertible Senior Notes

The fair value of the Convertible Senior Notes was $362.2 million and $387.6 million at October 31, 2022 and July 31, 2022, respectively. The Company estimates the fair value of the Convertible Senior Notes using commonly accepted valuation methodologies and market-based risk measurements that are directly observable, such as unadjusted quoted prices in markets that are not active (Level 2). The Company carries the Convertible Senior Notes at initial fair value less unamortized debt issuance costs on its condensed consolidated balance sheets. For further information on the Convertible Senior Notes, see Note 5.

Strategic Equity Investments

The Company’s other assets include strategic equity investments in privately-held companies in which the Company does not have a controlling interest or the ability to exert significant influence. The strategic investments consist of non-marketable equity securities that do not have readily determinable market values (Level 3). The Company records these strategic investments at cost less impairment and adjusts cost for subsequent observable changes in fair value. During the three months ended October 31, 2022, the Company invested $0.2 million in an existing strategic equity investment. At October 31, 2022 and July 31, 2022, the Company’s total strategic equity investments was $18.2 million and $18.0 million, respectively.

No impairment charges or unrealized gain or loss related to strategic investments were recognized during the three months ended October 31, 2022 and 2021.

- 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

Net Income (Loss) Per Share

3 Months Ended

Oct. 31, 2022

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. For options to purchase common stock and Stock Awards, the Company uses the treasury stock method for calculating diluted earnings per share in all periods presented. Effective August 1, 2022, the Company adopted ASU 2020-06 which requires the use of the if-converted method for the Convertible Senior Notes. Prior to August 1, 2022, the Company used the treasury stock method for the Convertible Senior Notes.

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share for the three months ended October 31, 2022 and 2021 (in thousands, except share and per share amounts):


	Three Months Ended October 31,
	2022		2021
Numerator:
Net income (loss)	$	(69,318)	$	(51,276)
Net income (loss) per share:
Basic and diluted	$	(0.83)	$	(0.62)

Denominator:
Weighted average shares used in computing net income (loss) per share:
Basic and diluted	83,320,967		83,225,743

The following weighted average shares 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 anti-dilutive:


	Three Months Ended October 31,
	2022	2021
Stock options	14,806	24,700
Stock awards	1,188,284	2,905,346
Convertible senior notes	3,516,480	133,668

During the three months ended October 31, 2022, the average market price of the Company’s common stock did not exceed the initial conversion price of the Convertible Senior Notes. During the three months ended October 31, 2021, the average market price of the Company’s common stock exceeded the initial conversion price of the Convertible Senior Notes and the conversion premium was anti-dilutive under the treasury stock method.

Convertible Senior Notes

3 Months Ended

Oct. 31, 2022

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


	October 31, 2022		July 31, 2022
Principal	$	400,000	$	400,000
Less unamortized:
Debt discount(1)	—		37,253
Debt issuance costs	4,109		4,531
Net carrying amount	$	395,891	$	358,216

(1) Effective August 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method which resulted in the accounting for the Convertible Senior Notes as a single liability and no longer required the liability and equity components to be accounted for separately. The prior period has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for that period.

The effective interest rate of the Convertible Senior Notes after the adoption of ASU 2020-06 on August 1, 2022 is 1.69%. Prior to the adoption of ASU 2020-06, the effective interest rate of the Convertible Senior Notes was 5.53%.

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


	Three Months Ended October 31,
	2022		2021
Contractual interest expense	$	1,250	$	1,250
Amortization of debt discount(1)	—		3,176
Amortization of debt issuance costs	423		348
Total	$	1,673	$	4,774

(1) Effective August 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method which resulted in the accounting for the Convertible Senior Notes as a single liability and no longer required the amortization of debt discount. The prior period has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for that period.

As of October 31, 2022, the if-converted value did not exceed the outstanding principal of the Convertible Senior Notes.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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+ Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Oct. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Except as discussed below, there has been no material change in the Company’s contractual obligations and commitments other than in the ordinary course of business since the Company’s fiscal year ended July 31, 2022. Effective during the three months ended October 31, 2022, the Company terminated its existing agreement and entered into a new agreement with a cloud infrastructure services provider for a total obligation of $600 million over a five-year period. See the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2022 for additional information regarding the Company’s contractual obligations. Legal Proceedings From time to time, the Company is involved in various legal proceedings and receives claims, arising from the normal course of business activities. The Company has not recorded any accrual for claims as of October 31, 2022 or July 31, 2022. The Company has not accrued for estimated losses in the accompanying condensed consolidated financial statements as the Company has determined that no provision for liability nor disclosure is required related to any claim against the Company because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. The Company expenses legal fees in the period in which they are incurred. Indemnification The Company sells software licenses and services to its customers under Software License Agreements (“SLA”) and Software Subscription Agreements (“SSA”). SLAs and SSAs contain the terms of the contractual arrangement with the customer and generally include 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. SLAs and SSAs also generally indemnify the customer against judgments, settlements, fines, penalties, costs, and expenses resulting from a claim (“Losses”) 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 October 31, 2022 or July 31, 2022. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under various SLAs and SSAs, 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.

Stock-Based Compensation Expense and Shareholders' Equity

3 Months Ended

Oct. 31, 2022

Stockholders' Equity and Stock-based Compensation [Abstract]

Stock-Based Compensation Expense and Shareholders' Equity

Stock-Based Compensation Expense and Shareholders’ Equity

Stock-Based Compensation Expense

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


	Three Months Ended October 31,
	2022		2021
Stock-based compensation expense	$	35,249	$	32,533
Net impact of deferred stock-based compensation	(153)		(293)
Total stock-based compensation expense, net	$	35,096	$	32,240
Stock-based compensation expense is included in the following categories:
Cost of subscription and support revenue	$	3,468	$	3,030
Cost of license revenue	147		182
Cost of services revenue	5,349		5,189
Research and development	9,291		7,997
Sales and marketing	6,887		7,113
General and administrative	9,954		8,729
Total stock-based compensation expense	$	35,096	$	32,240

Total unrecognized stock-based compensation expense related to the Company’s stock options and Stock Awards as of October 31, 2022 is as follows:


	Unrecognized Expense (in thousands)		Weighted Average Expected Recognition Period (in years)
Stock Options	$	3,569	1.8
Stock Awards	352,209		3.0
Total unrecognized stock-based compensation expense	$	355,778

Stock Awards

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


	Stock Awards Outstanding
	Number of Stock Awards Outstanding	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)(1)
Balance as of July 31, 2022	2,785,353	$	110.47	$	216,478
Granted	1,991,973	$	66.03
Released	(373,380)	$	112.50	$	24,981
Canceled	(100,911)	$	106.40
Balance as of October 31, 2022	4,303,035	$	89.81	$	255,643
Expected to vest as of October 31, 2022	4,303,035	$	89.81	$	255,643

(1) Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $59.41 and $77.72 on October 31, 2022 and July 31, 2022, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release.

Stock Options

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


	Stock Options Outstanding
	Number of Stock Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value(1)
				(in years)	(in thousands)
Balance as of July 31, 2022	75,706	$	61.93	8.7	$	1,196
Granted	91,350	$	68.22
Exercised	—	$	—		$	—
Canceled	—	$	—
Balance as of October 31, 2022	167,056	$	65.37	9.1	$	647
Vested and expected to vest as of October 31, 2022	167,056	$	65.37	9.1	$	647
Exercisable as of October 31, 2022	14,806	$	21.85	3.3	$	556

(1) Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock price of $59.41 and $77.72 on October 31, 2022 and July 31, 2022, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.

Share Repurchase Program

In September 2022, the Company's board of directors authorized and approved a share repurchase program of up to $400.0 million of the Company's outstanding common stock. Share repurchases under the program may be made from time to time, in the open market, in privately negotiated transactions and otherwise, at the discretion of management of the Company and in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act, and other applicable legal requirements. Such repurchases may also be made in compliance with Rule 10b5-1 trading plans entered into by the Company.

In September 2022, the Company entered into an accelerated share repurchase (“ASR”) agreement with a large financial institution whereupon the Company provided them with a prepayment of $200.0 million and received an initial delivery of 2,581,478 shares of the Company’s common stock. The ASR is expected to settle between the second and third quarters of fiscal year 2023. Under the terms of the ASR, the total number of shares delivered and average price paid per share will be determined upon settlement based on the volume weighted average price over the term of the ASR, less an agreed upon discount. At settlement, the financial institution may be required to deliver additional shares of the Company’s common stock to the Company or, under certain circumstances, the Company may be required to make a cash payment or deliver shares of the Company’s common stock to the financial institution, with the method of settlement at the Company’s election. As of October 31, 2022, a portion of the ASR prepayment was evaluated as an unsettled forward contract indexed to the Company’s stock, classified within stockholders’ equity.

During the three months ended October 31, 2022, the Company repurchased 2,581,478 shares of common stock through the ASR described above. As of October 31, 2022, $200.0 million remains under the September 2022 authorized and approved share repurchase program.

During the three months ended October 31, 2021, the Company repurchased 226,172 shares of common stock at an average price of $116.12 per share under a previously completed share repurchase program.

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

3 Months Ended

Oct. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Company

Basis of Presentation and Consolidation

Reclassification

Use of Estimates

Convertible Senior Notes

Restricted Cash

Concentration of Credit Risk

Recent Accounting Pronouncements Not Yet Adopted; Other Accounting Pronouncements

Recently Adopted Accounting Pronouncements

The following table summarizes the adjustments made to the condensed consolidated balance sheet as of August 1, 2022 as a result of applying the modified retrospective adoption method (in thousands):


	Balances reported as of July 31, 2022		Cumulative effect adjustment due to adoption of ASU 2020-06		Adjusted beginning balance as of August 1, 2022
Deferred tax assets, net	$	191,461	$	8,944	$	200,405
Convertible senior notes, net	(358,216)		(37,253)		(395,469)
Additional paid-in capital	(1,755,476)		68,003		(1,687,473)
Accumulated deficit	283,982		(39,694)		244,288

Other Accounting Pronouncements

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

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

3 Months Ended

Oct. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Prior Period Adjustments

The following table summarizes the adjustments made to the condensed consolidated balance sheet as of August 1, 2022 as a result of applying the modified retrospective adoption method (in thousands):


	Balances reported as of July 31, 2022		Cumulative effect adjustment due to adoption of ASU 2020-06		Adjusted beginning balance as of August 1, 2022
Deferred tax assets, net	$	191,461	$	8,944	$	200,405
Convertible senior notes, net	(358,216)		(37,253)		(395,469)
Additional paid-in capital	(1,755,476)		68,003		(1,687,473)
Accumulated deficit	283,982		(39,694)		244,288

Revenue (Tables)

3 Months Ended

Oct. 31, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Revenue by license or service type is as follows (in thousands):


	Three Months Ended October 31,
	2022		2021
Subscription and support
Subscription	$	78,977	$	57,129
Support	20,091		21,861
License
Term license	40,889		40,105
Perpetual license	63		48
Services	55,262		46,791
Total revenue	$	195,282	$	165,934

Revenue by revenue type and by geography is as follows (in thousands):


	Three Months Ended October 31, 2022
	Subscription and support		License		Services		Total

United States	$	67,081	$	17,509	$	38,525	$	123,115
Canada	16,051		3,693		6,052		25,796
Other Americas	1,475		320		422		2,217
Total Americas	84,607		21,522		44,999		151,128
United Kingdom	2,643		4,852		655		8,150
Other EMEA	6,285		5,573		7,239		19,097
Total EMEA	8,928		10,425		7,894		27,247
Total APAC	5,533		9,005		2,369		16,907
Total revenue	$	99,068	$	40,952	$	55,262	$	195,282


	Three Months Ended October 31, 2021
	Subscription and support		License		Services		Total

United States	$	53,023	$	18,453	$	32,663	$	104,139
Canada	11,941		5,813		2,358		20,112
Other Americas	1,039		237		708		1,984
Total Americas	66,003		24,503		35,729		126,235
United Kingdom	2,333		5,832		1,094		9,259
Other EMEA	5,217		1,407		6,395		13,019
Total EMEA	7,550		7,239		7,489		22,278
Total APAC	5,437		8,411		3,573		17,421
Total revenue	$	78,990	$	40,153	$	46,791	$	165,934

Contract with Customer, Asset and Liability

Amounts related to customer contract-related arrangements are included on the condensed consolidated balance sheets as follows (in thousands):


	October 31, 2022		July 31, 2022
Unbilled accounts receivable, net	$	106,088	$	85,429
Contract costs, net	$	41,352	$	44,235
Deferred revenue, net	$	144,701	$	178,276

Fair Value of Financial Instruments (Tables)

3 Months Ended

Oct. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Available-for-sale Securities Reconciliation

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


	October 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Commercial paper	$	177,719	$	—	$	—	$	177,719
Corporate bonds	302,449		7		(5,973)		296,483
Certificates of deposit	54,997		—		—		54,997
U.S. Government bonds	67,793		6		(1,760)		66,039
Money market funds	67,752		—		—		67,752
U.S. Government agency securities	49,354		—		(642)		48,712
Asset-backed securities	50,438		2		(786)		49,654
Foreign government bonds	10,346		—		(456)		9,890

Total	$	780,848	$	15	$	(9,617)	$	771,246


	July 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Commercial paper	$	197,998	$	—	$	—	$	197,998
Corporate bonds	320,474		8		(4,880)		315,602
Certificates of deposit	43,715		—		—		43,715
U.S. Government bonds	47,014		—		(1,312)		45,702
Money market funds	349,492		—		—		349,492
U.S. Government agency securities	37,572		—		(586)		36,986
Asset-backed securities	54,782		—		(611)		54,171
Foreign government bonds	15,109		—		(361)		14,748
Municipal bonds	205		—		—		205
Total	$	1,066,361	$	8	$	(7,750)	$	1,058,619

Investments Classified by Contractual Maturity Date

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


	October 31, 2022
	Less Than 12 Months		12 Months or Greater		Total
Commercial paper	$	177,719	$	—	$	177,719
Corporate bonds	222,767		73,716		296,483
Certificates of deposit	54,997		—		54,997
U.S. Government bonds	30,490		35,549		66,039
Money market funds	67,752		—		67,752
U.S. Government agency securities	44,880		3,832		48,712
Asset-backed securities	1,427		48,227		49,654
Foreign government bonds	7,879		2,011		9,890

Total	$	607,911	$	163,335	$	771,246

Fair Value, Assets Measured on Recurring Basis

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


	October 31, 2022
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Commercial paper	$	—	$	77,178	$	—	$	77,178
Certificates of deposit	—		3,000		—		3,000
Money market funds	67,752		—		—		67,752
U.S. Government agency securities	—		17,958		—		17,958
Total cash equivalents	67,752		98,136		—		165,888
Short-term investments:
Commercial paper	—		100,541		—		100,541
Corporate bonds	—		222,767		—		222,767
Certificates of deposit	—		51,997		—		51,997
U.S. Government bonds	—		30,490		—		30,490
U.S. Government agency securities	—		26,922		—		26,922
Asset-backed securities	—		1,427		—		1,427
Foreign government bonds	—		7,879		—		7,879

Total short-term investments	—		442,023		—		442,023
Long-term investments:

Corporate bonds	—		73,716		—		73,716
U.S. Government bonds	—		35,549		—		35,549
U.S. Government agency securities	—		3,832		—		3,832
Asset-backed securities	—		48,227		—		48,227
Foreign government bonds	—		2,011		—		2,011
Total long-term investments	—		163,335		—		163,335
Total	$	67,752	$	703,494	$	—	$	771,246


	July 31, 2022
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Commercial paper	$	—	$	132,066	$	—	$	132,066
Certificates of deposit	—		9,689		—		9,689
Money market funds	349,492		—		—		349,492
U.S. Government agency securities	—		10,000		—		10,000
Total cash equivalents	349,492		151,755		—		501,247
Short-term investments:
Commercial paper	—		65,932		—		65,932
Corporate bonds	—		203,960		—		203,960
Certificates of deposit	—		34,026		—		34,026
U.S. Government bonds	—		25,429		—		25,429
U.S. Government agency securities	—		26,986		—		26,986
Asset-backed securities	—		8,627		—		8,627
Foreign government bonds	—		4,700		—		4,700
Municipal bonds	—		205		—		205
Total short-term investments	—		369,865		—		369,865
Long-term investments:
Corporate bonds	—		111,642		—		111,642
U.S. Government bonds	—		20,273		—		20,273
Asset-backed securities	—		45,544		—		45,544
Foreign government bonds	—		10,048		—		10,048
Total long-term investments	—		187,507		—		187,507
Total	$	349,492	$	709,127	$	—	$	1,058,619

Net Income (Loss) Per Share (Tables)

3 Months Ended

Oct. 31, 2022

Earnings Per Share [Abstract]

Company's basic and diluted earnings per share


	Three Months Ended October 31,
	2022		2021
Numerator:
Net income (loss)	$	(69,318)	$	(51,276)
Net income (loss) per share:
Basic and diluted	$	(0.83)	$	(0.62)

Denominator:
Weighted average shares used in computing net income (loss) per share:
Basic and diluted	83,320,967		83,225,743

Schedule of Antidilutive Securities excluded from EPS


	Three Months Ended October 31,
	2022	2021
Stock options	14,806	24,700
Stock awards	1,188,284	2,905,346
Convertible senior notes	3,516,480	133,668

Convertible Senior Notes (Tables)

3 Months Ended

Oct. 31, 2022

Debt Disclosure [Abstract]

Schedule of convertible debt

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


	October 31, 2022		July 31, 2022
Principal	$	400,000	$	400,000
Less unamortized:
Debt discount(1)	—		37,253
Debt issuance costs	4,109		4,531
Net carrying amount	$	395,891	$	358,216

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


	Three Months Ended October 31,
	2022		2021
Contractual interest expense	$	1,250	$	1,250
Amortization of debt discount(1)	—		3,176
Amortization of debt issuance costs	423		348
Total	$	1,673	$	4,774

(1) Effective August 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method which resulted in the accounting for the Convertible Senior Notes as a single liability and no longer required the amortization of debt discount. The prior period has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for that period.

Stock-Based Compensation Expense and Shareholders' Equity (Tables)

3 Months Ended

Oct. 31, 2022

Stockholders' Equity and Stock-based Compensation [Abstract]

Stock-based compensation expense

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


	Three Months Ended October 31,
	2022		2021
Stock-based compensation expense	$	35,249	$	32,533
Net impact of deferred stock-based compensation	(153)		(293)
Total stock-based compensation expense, net	$	35,096	$	32,240
Stock-based compensation expense is included in the following categories:
Cost of subscription and support revenue	$	3,468	$	3,030
Cost of license revenue	147		182
Cost of services revenue	5,349		5,189
Research and development	9,291		7,997
Sales and marketing	6,887		7,113
General and administrative	9,954		8,729
Total stock-based compensation expense	$	35,096	$	32,240

Total unrecognized stock-based compensation expense related to the Company’s stock options and Stock Awards as of October 31, 2022 is as follows:

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

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


	Stock Awards Outstanding
	Number of Stock Awards Outstanding	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)(1)
Balance as of July 31, 2022	2,785,353	$	110.47	$	216,478
Granted	1,991,973	$	66.03
Released	(373,380)	$	112.50	$	24,981
Canceled	(100,911)	$	106.40
Balance as of October 31, 2022	4,303,035	$	89.81	$	255,643
Expected to vest as of October 31, 2022	4,303,035	$	89.81	$	255,643

Schedule of Share-based Compensation, Stock Options, Activity

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


	Stock Options Outstanding
	Number of Stock Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value(1)
				(in years)	(in thousands)
Balance as of July 31, 2022	75,706	$	61.93	8.7	$	1,196
Granted	91,350	$	68.22
Exercised	—	$	—		$	—
Canceled	—	$	—
Balance as of October 31, 2022	167,056	$	65.37	9.1	$	647
Vested and expected to vest as of October 31, 2022	167,056	$	65.37	9.1	$	647
Exercisable as of October 31, 2022	14,806	$	21.85	3.3	$	556

The Company and Summary of Significant Accounting Policies and Estimates (Schedule of Prior Period Adjustments) (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Aug. 01, 2022	Jul. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Convertible senior notes, net	$ (395,891)	$ (395,469)	$ (358,216)
Deferred tax assets, net		200,405	191,461
Additional paid-in capital		(1,687,473)	(1,755,476)
Retained earnings (accumulated deficit)	$ 473,606		283,982
Retained earnings (accumulated deficit)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Retained earnings (accumulated deficit)		$ (244,288)	283,982
Adoption of Accounting Standards Update ("ASU") 2020-06
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Convertible senior notes, net			(37,253)
Deferred tax assets, net			8,944
Additional paid-in capital			68,003
Adoption of Accounting Standards Update ("ASU") 2020-06 \| Retained earnings (accumulated deficit)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Retained earnings (accumulated deficit)			$ (39,694)

- Definition

The cumulative amount of the reporting entity's undistributed earnings or deficit.

+ References + Details

The Company and Summary of Significant Accounting Policies and Estimates (Details Textual)	3 Months Ended	6 Months Ended
	Oct. 31, 2022 USD ($) customer	Jan. 31, 2022 customer	Aug. 01, 2022	Jul. 31, 2022	Mar. 31, 2018 USD ($)
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Percentage of accounts receivable				10.00%
Prepaid Expenses and Other Current Assets
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Acquisition consideration holdback	$ 4,600,000
Other Assets
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Acquisition consideration holdback	$ 2,100,000
Convertible Senior Notes, 1.250% \| Senior Notes
Finite-Lived Intangible Assets [Line Items]
Aggregate principal amount					$ 400,000,000
Stated interest rate			1.69%	5.53%	1.25%
Customer Concentration Risk \| Revenue Benchmark \| Customer One
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Number of customers, concentration of credit risk \| customer	0
Percentage of revenue threshold	10.00%
Customer Concentration Risk \| Accounts Receivable \| Customer One
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Number of customers, concentration of credit risk \| customer	1	0
Percentage of accounts receivable	10.00%

Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 195,282	$ 165,934
United States
Disaggregation of Revenue [Line Items]
Total revenue	123,115	104,139
Canada
Disaggregation of Revenue [Line Items]
Total revenue	25,796	20,112
Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	2,217	1,984
Total Americas
Disaggregation of Revenue [Line Items]
Total revenue	151,128	126,235
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	8,150	9,259
Other EMEA
Disaggregation of Revenue [Line Items]
Total revenue	19,097	13,019
Total EMEA
Disaggregation of Revenue [Line Items]
Total revenue	27,247	22,278
Total APAC
Disaggregation of Revenue [Line Items]
Total revenue	16,907	17,421
Subscription and support
Disaggregation of Revenue [Line Items]
Total revenue	99,068	78,990
Subscription and support \| United States
Disaggregation of Revenue [Line Items]
Total revenue	67,081	53,023
Subscription and support \| Canada
Disaggregation of Revenue [Line Items]
Total revenue	16,051	11,941
Subscription and support \| Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	1,475	1,039
Subscription and support \| Total Americas
Disaggregation of Revenue [Line Items]
Total revenue	84,607	66,003
Subscription and support \| United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	2,643	2,333
Subscription and support \| Other EMEA
Disaggregation of Revenue [Line Items]
Total revenue	6,285	5,217
Subscription and support \| Total EMEA
Disaggregation of Revenue [Line Items]
Total revenue	8,928	7,550
Subscription and support \| Total APAC
Disaggregation of Revenue [Line Items]
Total revenue	5,533	5,437
Subscription
Disaggregation of Revenue [Line Items]
Total revenue	78,977	57,129
Support
Disaggregation of Revenue [Line Items]
Total revenue	20,091	21,861
License
Disaggregation of Revenue [Line Items]
Total revenue	40,952	40,153
License \| United States
Disaggregation of Revenue [Line Items]
Total revenue	17,509	18,453
License \| Canada
Disaggregation of Revenue [Line Items]
Total revenue	3,693	5,813
License \| Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	320	237
License \| Total Americas
Disaggregation of Revenue [Line Items]
Total revenue	21,522	24,503
License \| United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	4,852	5,832
License \| Other EMEA
Disaggregation of Revenue [Line Items]
Total revenue	5,573	1,407
License \| Total EMEA
Disaggregation of Revenue [Line Items]
Total revenue	10,425	7,239
License \| Total APAC
Disaggregation of Revenue [Line Items]
Total revenue	9,005	8,411
Term license
Disaggregation of Revenue [Line Items]
Total revenue	40,889	40,105
Perpetual license
Disaggregation of Revenue [Line Items]
Total revenue	63	48
Services
Disaggregation of Revenue [Line Items]
Total revenue	55,262	46,791
Services \| United States
Disaggregation of Revenue [Line Items]
Total revenue	38,525	32,663
Services \| Canada
Disaggregation of Revenue [Line Items]
Total revenue	6,052	2,358
Services \| Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	422	708
Services \| Total Americas
Disaggregation of Revenue [Line Items]
Total revenue	44,999	35,729
Services \| United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	655	1,094
Services \| Other EMEA
Disaggregation of Revenue [Line Items]
Total revenue	7,239	6,395
Services \| Total EMEA
Disaggregation of Revenue [Line Items]
Total revenue	7,894	7,489
Services \| Total APAC
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,369	$ 3,573

Revenue (Contract with Customer) (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Revenue from Contract with Customer [Abstract]
Unbilled accounts receivable, net	$ 106,088	$ 85,429
Contract costs, net	41,352	44,235
Deferred revenue, net	$ 144,701	$ 178,276

Revenue (Details) - USD ($)	3 Months Ended
Revenue (Details) - USD ($)	Oct. 31, 2022	Oct. 31, 2021	Jul. 31, 2022
Revenue from Contract with Customer [Abstract]
Allowance for doubtful accounts	$ 0		$ 0
Contract costs, current	14,600,000		14,800,000
Contract costs, noncurrent	26,800,000		$ 29,400,000
Amortization of contract costs	4,490,000	$ 3,001,000
Contract with customer, liability, revenue recognized	81,900,000
Remaining performance obligation, amount	$ 1,100,000,000

Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 780,848	$ 1,066,361
Unrealized Gains	15	8
Unrealized Losses	(9,617)	(7,750)
Estimated Fair Value	771,246	1,058,619
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	177,719	197,998
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	177,719	197,998
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	302,449	320,474
Unrealized Gains	7	8
Unrealized Losses	(5,973)	(4,880)
Estimated Fair Value	296,483	315,602
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	54,997	43,715
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	54,997	43,715
U.S. Government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	67,793	47,014
Unrealized Gains	6	0
Unrealized Losses	(1,760)	(1,312)
Estimated Fair Value	66,039	45,702
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	67,752	349,492
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	67,752	349,492
U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	49,354	37,572
Unrealized Gains	0	0
Unrealized Losses	(642)	(586)
Estimated Fair Value	48,712	36,986
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	50,438	54,782
Unrealized Gains	2	0
Unrealized Losses	(786)	(611)
Estimated Fair Value	49,654	54,171
Foreign government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	10,346	15,109
Unrealized Gains	0	0
Unrealized Losses	(456)	(361)
Estimated Fair Value	$ 9,890	14,748
Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost		205
Unrealized Gains		0
Unrealized Losses		0
Estimated Fair Value		$ 205

Fair Value of Financial Instruments (Details 2) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months	$ 607,911
12 Months or Greater	163,335
Total	771,246	$ 1,058,619
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months	177,719
12 Months or Greater	0
Total	177,719	197,998
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months	222,767
12 Months or Greater	73,716
Total	296,483	315,602
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months	54,997
12 Months or Greater	0
Total	54,997	43,715
U.S. Government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months	30,490
12 Months or Greater	35,549
Total	66,039	45,702
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months	67,752
12 Months or Greater	0
Total	67,752	349,492
U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months	44,880
12 Months or Greater	3,832
Total	48,712	36,986
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months	1,427
12 Months or Greater	48,227
Total	49,654	54,171
Foreign government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months	7,879
12 Months or Greater	2,011
Total	$ 9,890	14,748
Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		$ 205

Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	$ 165,888	$ 501,247
Total short-term investments	442,023	369,865
Total long-term investments	163,335	187,507
Total	771,246	1,058,619
Strategic investments, noncurrent	200
Equity investments	18,200	18,000
Senior Notes \| Convertible Senior Notes, 1.250%
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	362,200	387,600
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	67,752	349,492
Total short-term investments	0	0
Total long-term investments	0	0
Total	67,752	349,492
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	98,136	151,755
Total short-term investments	442,023	369,865
Total long-term investments	163,335	187,507
Total	703,494	709,127
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Total short-term investments	0	0
Total long-term investments	0	0
Total	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	77,178	132,066
Commercial paper \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	77,178	132,066
Commercial paper \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	3,000	9,689
Certificates of deposit \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Certificates of deposit \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	3,000	9,689
Certificates of deposit \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	67,752	349,492
Money market funds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	67,752	349,492
Money market funds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Money market funds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	17,958	10,000
U.S. Government agency securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
U.S. Government agency securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	17,958	10,000
U.S. Government agency securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	100,541	65,932
Commercial paper \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	100,541	65,932
Commercial paper \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	222,767	203,960
Total long-term investments	73,716	111,642
Corporate bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total long-term investments	0	0
Corporate bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	222,767	203,960
Total long-term investments	73,716	111,642
Corporate bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total long-term investments	0	0
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	51,997	34,026
Certificates of deposit \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Certificates of deposit \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	51,997	34,026
Certificates of deposit \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
U.S. Government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	30,490	25,429
Total long-term investments	35,549	20,273
U.S. Government bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total long-term investments	0	0
U.S. Government bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	30,490	25,429
Total long-term investments	35,549	20,273
U.S. Government bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total long-term investments	0	0
U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	26,922	26,986
Total long-term investments	3,832
U.S. Government agency securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total long-term investments	0
U.S. Government agency securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	26,922	26,986
Total long-term investments	3,832
U.S. Government agency securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total long-term investments	0
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	1,427	8,627
Total long-term investments	48,227	45,544
Asset-backed securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total long-term investments	0	0
Asset-backed securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	1,427	8,627
Total long-term investments	48,227	45,544
Asset-backed securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total long-term investments	0	0
Foreign government bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	7,879	4,700
Total long-term investments	2,011	10,048
Foreign government bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total long-term investments	0	0
Foreign government bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	7,879	4,700
Total long-term investments	2,011	10,048
Foreign government bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total long-term investments	$ 0	0
Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments		205
Municipal bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments		0
Municipal bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments		205
Municipal bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments		$ 0

Net Income (Loss) Per Share (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Numerator:
Net income (loss)	$ (69,318)	$ (51,276)
Net income (loss) per share:
Basic (in dollars per share)	$ (0.83)	$ (0.62)
Diluted (in dollars per share)	$ (0.83)	$ (0.62)
Weighted average shares used in computing net income (loss) per share:
Basic (in shares)	83,320,967	83,225,743
Diluted (in shares)	83,320,967	83,225,743

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=125511455&loc=d3e1448-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=125511455&loc=d3e1337-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=125512782&loc=d3e4984-109258

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=125512782&loc=d3e3842-109258

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

+ Details

Net Income (Loss) Per Share (Details 2) - shares	3 Months Ended
Net Income (Loss) Per Share (Details 2) - shares	Oct. 31, 2022	Oct. 31, 2021
Stock options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (in shares)	14,806	24,700
Stock awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (in shares)	1,188,284	2,905,346
Convertible senior notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (in shares)	3,516,480	133,668

Convertible Senior Notes (Details) - Senior Notes - USD ($)	1 Months Ended
	Mar. 31, 2018	Oct. 31, 2022	Aug. 01, 2022	Jul. 31, 2022
Convertible Debt
Debt Instrument [Line Items]
Aggregate principal amount		$ 400,000,000		$ 400,000,000
Net proceeds	$ 387,200,000
Convertible Senior Notes, 1.250%
Debt Instrument [Line Items]
Aggregate principal amount	$ 400,000,000
Stated interest rate	1.25%		1.69%	5.53%

Convertible Senior Notes - Net carrying value of the liability component (Details) - Senior Notes - Convertible Debt - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Debt Instrument [Line Items]
Principal	$ 400,000	$ 400,000
Debt discount(1)	0	37,253
Debt issuance costs	4,109	4,531
Net carrying amount	$ 395,891	$ 358,216

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Convertible Senior Notes - Schedule of interest expense recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Debt Instrument [Line Items]
Contractual interest expense	$ 1,674	$ 4,794
Senior Notes \| Convertible Debt
Debt Instrument [Line Items]
Contractual interest expense	1,250	1,250
Amortization of debt discount(1)	0	3,176
Amortization of debt issuance costs	423	348
Total	$ 1,673	$ 4,774

Commitments and Contingencies (Details Textual)	Oct. 31, 2022 USD ($) customer	Jul. 31, 2022 USD ($) customer
Commitments and Contingencies Disclosure [Abstract]
Reimbursement	$ 0	$ 0
Claims outstanding \| customer	0	0
Purchase obligation	$ 600,000,000
Purchase obligation period (in years)	5 years

Stock-Based Compensation Expense and Shareholders' Equity (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 35,249	$ 32,533
Net impact of deferred stock-based compensation	(153)	(293)
Total stock-based compensation expense, net	35,096	32,240
Total stock-based compensation expense	35,096	32,240
Unrecognized stock-based compensation expense	355,778
Stock options
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unrecognized stock-based compensation expense	$ 3,569
Unrecognized stock-based compensation expense, period for recognition	1 year 9 months 18 days
Restricted Stock Units (RSUs) [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unrecognized stock-based compensation expense	$ 352,209
Unrecognized stock-based compensation expense, period for recognition	3 years
Cost of subscription and support revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 3,468	3,030
Cost of license revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	147	182
Cost of services revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	5,349	5,189
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	9,291	7,997
Sales and marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	6,887	7,113
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 9,954	$ 8,729

Stock-Based Compensation Expense and Shareholders' Equity (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 31, 2022	Jul. 31, 2022	Jul. 31, 2021
Weighted Average Grant Date Fair Value
Share price (in dollars per share)	$ 59.41	$ 77.72
Weighted Average Exercise Price
Granted (in dollars per share)		$ 68.22
Canceled (in dollars per share)	$ 0
Stock awards
Number of Stock Awards Outstanding
Balance at beginning of period (in shares)	2,785,353
Granted (in shares)	1,991,973
Released (in shares)	(373,380)
Canceled (in shares)	(100,911)
Balance at end of period (in shares)	4,303,035	2,785,353
Expected to vest (in shares)	4,303,035
Weighted Average Grant Date Fair Value
Balance at beginning of period (in dollars per share)	$ 110.47
Granted (in dollars per share)	66.03
Released (in dollars per share)	112.50
Canceled (in dollars per share)	106.40
Balance at end of period (in dollars per share)	89.81	$ 110.47
Expected to vest (in dollars per share)	$ 89.81
Aggregate intrinsic value, Nonvested	$ 255,643	$ 216,478
Aggregate intrinsic value, released	24,981
Aggregate intrinsic value, Expected to vest	$ 255,643
Stock options
Number of Stock Options Outstanding
Balance at beginning of period (in shares)	75,706
Granted (in shares)		91,350
Exercised (in shares)		0
Canceled (in shares)		0
Balance at end of period (in shares)	167,056	75,706
Vested and expected to vest (in shares)	167,056
Exercisable (in shares)	14,806
Weighted Average Exercise Price
Balance at beginning of period (in dollars per share)	$ 61.93
Exercised (in dollars per share)		$ 0
Balance at end of period (in dollars per share)	65.37	$ 61.93
Vested and expected to vest (in dollars per share)	65.37
Exercisable (in dollars per share)	$ 21.85
Weighted Average Remaining Contractual Life
Outstanding, weighted average remaining contractual life		9 years 1 month 6 days	8 years 8 months 12 days
Vested and expected to vest, weighted average remaining contractual life		9 years 1 month 6 days
Exercisable, weighted average remaining contractual life		3 years 3 months 18 days
Aggregate Intrinsic Value
Aggregate intrinsic value	$ 647	$ 1,196
Exercised		$ 0
Vested and expected to vest	647
Exercisable	$ 556

Stock-Based Compensation Expense and Shareholders' Equity (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Sep. 30, 2022	Oct. 31, 2022	Oct. 31, 2021	Oct. 20, 2020
Class of Stock [Line Items]
Average price per share (in dollars per share)		$ 116.12
Prepayment for repurchase of stock		$ 200,000,000	$ 26,262,000
Stock repurchased during period (in shares)		226,172
Accelerated Share Repurchase Agreement
Class of Stock [Line Items]
Authorized repurchase amount				$ 400,000,000
Shares repurchased (in shares)	2,581,478	2,581,478
Prepayment for repurchase of stock	$ 200,000,000
Remaining authorized amount		$ 200,000,000