View Filing Data

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Jul. 31, 2013	Aug. 31, 2013	Jan. 31, 2013
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
Document Period End Date	Jul. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		57,943,601
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 1,500

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012
CURRENT ASSETS:
Cash and cash equivalents	$ 79,767	$ 205,718
Short-term investments	76,932	0
Restricted cash, current	167	3,726
Accounts receivable	40,885	32,313
Deferred tax assets, current	2,897	13,442
Prepaid expenses and other current assets	9,445	7,266
Total current assets	210,093	262,465
Long-term investments	51,040	0
Property and equipment, net	12,914	11,924
Intangible assets, net	6,879	0
Deferred tax assets, noncurrent	21,091	9,313
Goodwill	9,048	0
Other assets	1,205	545
TOTAL ASSETS	312,270	284,247
CURRENT LIABILITIES:
Accounts payable	6,517	9,781
Accrued employee compensation	26,302	26,502
Deferred revenues, current	37,351	52,947
Other current liabilities	4,614	3,957
Total current liabilities	74,784	93,187
Deferred revenues, noncurrent	3,845	2,569
Other liabilities	5,212	4,529
Total liabilities	83,841	100,285
Commitments and contingencies (Note 5)
STOCKHOLDERS’ EQUITY:
Common stock, par value $0.0001 per share—500,000,000 shares authorized as of July 31, 2013 and 2012, respectively; 57,909,277 and 53,956,608 shares issued and outstanding as of July 31, 2013 and 2012, respectively	6	5
Additional paid-in capital	237,769	207,624
Accumulated other comprehensive loss	(1,558)	(496)
Accumulated deficit	(7,788)	(23,171)
Total stockholders’ equity	228,429	183,962
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 312,270	$ 284,247

Consloldated Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 2013	Jul. 31, 2012
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	57,909,277	53,956,608
Common stock, shares outstanding	57,909,277	53,956,608

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Revenues:
License	$ 123,560	$ 97,136	$ 73,883
Maintenance	37,561	29,538	21,321
Services	139,528	105,387	77,268
Total revenues	300,649	232,061	172,472
Cost of revenues:
License	920	762	1,264
Maintenance	7,613	5,288	4,063
Services	123,210	85,360	63,017
Total cost of revenues	131,743	91,410	68,344
Gross profit:
License	122,640	96,374	72,619
Maintenance	29,948	24,250	17,258
Services	16,318	20,027	14,251
Total gross profit	168,906	140,651	104,128
Operating expenses:
Research and development	66,346	50,462	34,773
Sales and marketing	53,301	38,254	28,950
General and administrative	32,414	28,336	23,534
Litigation provision	0	0	10,000
Total operating expenses	152,061	117,052	97,257
Income from operations	16,845	23,599	6,871
Interest income, net	498	308	156
Other income (expenses), net	(131)	(728)	1,269
Income before provision for (benefit from) income taxes	17,212	23,179	8,296
Provision for (benefit from) income taxes	1,829	7,979	(27,262)
Net income	$ 15,383	$ 15,200	$ 35,558
Earnings per share: (in dollars per share)
Basic	$ 0.27	$ 0.29	$ 0.83
Diluted	$ 0.25	$ 0.25	$ 0.76
Shares used in computing earnings per share:
Basic	56,331,018	34,774,983	14,064,055
Diluted	61,943,087	41,509,185	17,763,859

Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Net income	$ 15,383	$ 15,200	$ 35,558
Other comprehensive income (loss):
Foreign currency translation adjustments	(1,086)	(287)	128
Unrealized gains on available-for-sale securities	24	0	0
Other comprehensive income (loss)	(1,062)	(287)	128
Comprehensive income	$ 14,321	$ 14,913	$ 35,686

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the economic entity, including both controlling (parent) and noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, including any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

Amount after tax, before reclassification adjustments, resulting from the process of expressing in the reporting currency of the reporting entity those amounts that are denominated or measured in a different currency, and from transactions whose terms are denominated in a currency other than the entity's functional currency.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32211-110900

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (a-c)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32022-110900

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32157-110900

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 17
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 52
-Paragraph 13, 20, 31
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Net of tax amount of unrealized holding gain (loss) before reclassification adjustments and transfers on available-for-sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 13
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 17, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 24
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569616-111683

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591552-111686

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a),(c)
-URI http://asc.fasb.org/extlink&oid=18733093&loc=SL4573702-111684

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591551-111686

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A1, A4, A5
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Convertible preferred stock	Common stock	Additional paid-in capital	Accumulated other comprehensive income (loss)	Accumulated deficit
Balance, Shares at Jul. 31, 2010		25,357,721	13,772,656
Balance, Value at Jul. 31, 2010	$ (25,145)	$ 36,500	$ 1	$ 12,620	$ (337)	$ (73,929)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options, Shares			649,901
Issuance of common stock upon exercise of stock options, Value	931			931
Stock-based compensation	6,680			6,680
Net income	35,558					35,558
Foreign currency translation adjustment	128				128
Unrealized gains on available-for-sale securities	0
Balance, Shares at Jul. 31, 2011		25,357,721	14,422,557
Balance, Value at Jul. 31, 2011	18,152	$ 36,500	$ 1	20,231	(209)	(38,371)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Proceeds from issuance of common stock in connection with public offerings, net of underwriting discounts and commission, shares			10,927,500
Proceeds from issuance of common stock in connection with public offerings, net of underwriting discounts and commission, Value	143,386		$ 1	143,385
Costs incurred in connection with public offerings	(3,502)			(3,502)
Conversion of preferred stock to common stock, Shares		25,357,721	25,357,721
Conversion of preferred stock to common stock, Value	0	$ (36,500)	$ 3	36,497
Issuance of common stock upon exercise of stock options, Shares			2,211,967
Issuance of common stock upon exercise of stock options, Value	5,067			5,067
Issuance of common stock upon RSU release, net of shares withheld for taxes, Shares			1,018,228
Issuance of common stock upon RSU release, net of shares withheld for taxes, Value	(12,798)			(12,798)
Repurchase of unvested common stock, Shares			(3,005)
Repurchase of unvested common stock, Value	$ 0
Conversion of warrants to common stock	0		21,640
Stock-based compensation	$ 18,258			18,258
Tax benefit from the exercise of stock options and vesting of RSUs	486			486
Net income	15,200					15,200
Foreign currency translation adjustment	(287)				(287)
Unrealized gains on available-for-sale securities	0
Balance, Shares at Jul. 31, 2012		0	53,956,608
Balance, Value at Jul. 31, 2012	$ 183,962	$ 0	$ 5	207,624	(496)	(23,171)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options, Shares	2,905,296		2,904,248
Issuance of common stock upon exercise of stock options, Value	$ 9,124		$ 1	9,123
Issuance of common stock upon RSU release, net of shares withheld for taxes, Shares			1,048,421
Issuance of common stock upon RSU release, net of shares withheld for taxes, Value	(19,963)			(19,963)
Stock-based compensation	38,399			38,399
Tax benefit from the exercise of stock options and vesting of RSUs	2,586			$ 2,586
Net income	15,383					$ 15,383
Foreign currency translation adjustment	(1,086)				(1,086)
Unrealized gains on available-for-sale securities	$ 24				$ 24
Balance, Shares at Jul. 31, 2013		0	57,909,277

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 15,383	$ 15,200	$ 35,558
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,821	2,917	2,226
Stock-based compensation	38,399	18,258	6,680
Excess tax benefit from exercise of stock options and vesting of RSUs	(2,586)	(486)	0
Deferred tax assets	(3,901)	5,362	(28,117)
Other noncash items affecting net income	554	0	0
Changes in operating assets and liabilities:
Accounts receivable	(8,478)	(9,325)	(6,284)
Prepaid expenses and other assets	(2,690)	(2,442)	(2,674)
Accounts payable	355	1,059	577
Accrued employee compensation	164	8,246	413
Other liabilities	4,574	(3,907)	7,537
Deferred revenues	(14,048)	(17,788)	11,770
Net cash provided by operating activities	32,547	17,094	27,686
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities	(212,035)	0	0
Sales and maturities of available-for-sale securities	83,567	0	0
Acquisition, net of cash acquired	(14,749)	0	0
Purchase of property and equipment	(9,228)	(5,619)	(2,776)
Decrease (increase) in restricted cash	3,532	2,323	(5,534)
Net cash used in investing activities	(148,913)	(3,296)	(8,310)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock upon exercise of stock options	9,123	5,067	931
Taxes remitted on RSU awards vested	(20,330)	(12,430)	0
Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission	0	143,386	0
Costs paid in connection with stock offerings	0	(3,502)	0
Excess tax benefit from exercise of stock options and vesting of RSUs	2,586	486	0
Net cash provided by (used in) financing activities	(8,621)	133,007	931
Effect of foreign exchange rate changes on cash and cash equivalents	(964)	(712)	1,907
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(125,951)	146,093	22,214
CASH AND CASH EQUIVALENTS—BEGINNING OF YEAR	205,718	59,625	37,411
CASH AND CASH EQUIVALENTS—END OF YEAR	79,767	205,718	59,625
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	0	7	53
Cash paid for income taxes	2,266	2,058	2,207
SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES:
Conversion of convertible preferred stock and warrants into common stock upon initial public offering	0	36,506	0
Accruals for purchase of property & equipment	$ 693	$ 4,387	$ 0

The Company and Summary of Significant Accounting Policies and Estimates

12 Months Ended

Jul. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Summary of Significant Accounting Policies and Estimates

Business

Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. The Company together with its subsidiaries (the “Company”) provides Internet-based software platforms for core insurance operations, including underwriting and policy administration, claim management and billing. The Company’s customers include insurance carriers for property and casualty and workers’ compensation insurance. The Company has wholly-owned subsidiaries in Australia, Canada, China, France, Germany, Hong Kong, Ireland, Italy, Japan, Poland and the United Kingdom.

The Company offers a suite of applications to enable core property and casualty (“P&C”) insurance operations comprised of the following products: PolicyCenter, ClaimCenter and BillingCenter, as well as other newer product initiatives. The Company also provides maintenance support and provides professional services to the extent requested by its customers.

Public Offerings

On January 30, 2012, the Company closed its initial public offering (“IPO”) whereby 10,177,500 shares of common stock were sold to the public, including the underwriters’ full exercise of their overallotment option of 1,327,500 shares of common stock, at a price of $13.00 per share. The Company received aggregate proceeds of approximately $123.0 million from the IPO, including the exercise of the underwriters’ overallotment option, net of underwriters’ discounts and commissions, but before deduction of offering costs of approximately $3.5 million, including $2.8 million of capitalized costs. Upon the closing of the IPO, all shares of the Company’s outstanding convertible preferred stock automatically converted into 25,357,721 shares of common stock. Outstanding warrants to purchase 69,529 shares of convertible preferred stock at $5.03 per share were contractually adjusted to purchase 69,529 shares of common stock at $5.03 per share. Subsequent to the Company’s IPO and during April 2012 all eligible warrants were converted for 21,640 shares of the Company’s common stock and the remainder were canceled.

On April 24, 2012, the Company closed its follow-on public offering of 9,200,000 shares of its common stock, which included 750,000 shares of common stock sold by the Company and 8,450,000 shares of common stock sold by selling stockholders, including the underwriters’ full exercise of their overallotment option from the Company and selling stockholders. The public offering price of the shares sold in the offering was $28.25 per share. The Company received aggregate proceeds of approximately $20.4 million from the follow-on offering, net of underwriters’ discounts and commissions applicable to the sale of shares by the Company, but before deduction of offering costs of approximately $1.0 million payable by the Company, including $0.7 million of capitalized costs. The Company did not receive any proceeds from the sale of shares by the selling stockholders.

Basis of Presentation

The consolidated financial statements 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 periods presented. All intercompany balances and transactions have been eliminated in consolidation.

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 revenues and expenses. Significant items subject to such estimates include revenue recognition, the useful lives of property and equipment, allowance for doubtful accounts, valuation allowance for deferred tax assets, stock-based compensation, annual bonus attainment, income tax uncertainties, valuation of intangible assets, 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 significantly from these estimates.

Foreign Currency Translation

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 consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. The effects of foreign currency translations are recorded in accumulated other comprehensive loss as a separate component of stockholders’ deficit in the accompanying consolidated statement of stockholders’ equity (deficit). Realized gains and losses from foreign currency transactions are recorded as other income (expense) in the consolidated statements of operations.

Cash, Cash Equivalents, Investments and Restricted Cash

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 are comprised of short-term investments with an investment rating of either of the following: Moody's of A3 or higher, or by Standard & Poor's of A- or higher. The Company is exposed to credit risk in the event of default by the financial institutions or the issuers of these investments to the extent the amounts recorded on the balance sheet are in excess of amounts that are insured by the Federal Deposit Insurance Corporation (“FDIC”). Restricted cash is held in certificates of deposit pursuant to lease agreements, and, in prior periods, pursuant to secured letter of credit agreements as well. The Company classifies investments as short-term when they have remaining contractual maturities of less than one year 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.

The Company's investment policy is consistent with the definition of available-for-sale securities. From time to time, the Company may sell certain securities but the objectives are generally not to generate profits on short-term differences in price.

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
Software		3 years
Furniture and fixtures		3 years
Leasehold improvements		Shorter of the lease term or estimated useful life

Product Development Costs

Certain software development costs incurred subsequent to the establishment of technological feasibility are subject to capitalization and amortized over the estimated lives of the related products. Technological feasibility is established upon completion of a working model. Through July 31, 2013, costs incurred subsequent to the establishment of technological feasibility have been immaterial, and therefore, all software development costs have been charged to research and development expense in the accompanying consolidated statements of operations as incurred.

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 third fiscal quarter and whenever events or changes in circumstances indicate that the carrying amount may be impaired. Accounting Standards Update 2011-08 permits entities to first assess qualitative factors to determine whether it is more likely than not (a likelihood of more than 50%) 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, we would consider 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 our common stock. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the two-step goodwill impairment test is not performed.

If the two-step goodwill test is performed, we would evaluate and test our goodwill for impairment at a reporting-unit level using expected future cash flows to be generated by the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the calculated fair value of the goodwill.

We acquired goodwill during the fourth quarter of fiscal 2013. We did not recognize any goodwill impairment losses in fiscal 2013.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with high quality financial institutions with investment grade ratings.

No customer accounted for 10% or more of the Company’s revenues for the years ended July 31, 2013, 2012 and 2011. The Company had one customer and no customers that accounted for 10% of total accounts receivable as of July 31, 2013 and 2012, respectively.

Accounts Receivable and Allowance for Doubtful Accounts

The Company performs ongoing credit evaluations of its customers. Accounts receivable are recorded at invoiced amounts, net of the Company’s estimated allowances for doubtful accounts. The allowance for doubtful accounts is estimated based on an assessment of the Company’s ability to collect on customer accounts receivable. The Company regularly reviews the allowance by considering certain factors such as historical experience, industry data, credit quality, age of accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. In cases where the Company is aware of circumstances that may impair a specific purchaser’s ability to meet their financial obligations, the Company records a specific allowance against amounts due from the customer and thereby reduces the net recognized receivable to the amount the Company reasonably believes will be collected. There is judgment involved with estimating the Company’s allowance for doubtful accounts and if the financial condition of its customers were to deteriorate, resulting in their inability to make the required payments, the Company may be required to record additional allowances or charges against revenues. The Company writes-off accounts receivable against the allowance when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. The Company’s accounts receivable are not collateralized by any security. The Company has had no allowance for doubtful accounts or bad debt expense in the periods presented in this Annual Report on Form 10-K.

Revenue Recognition

The Company enters into arrangements to deliver multiple products or services (multiple-elements). The Company applies software revenue recognition rules and allocates the total revenues among elements based on vendor-specific objective evidence (“VSOE”) of fair value of each element. The Company recognizes revenue on a net basis excluding taxes collected from customers and remitted to government authorities.

Revenues are derived from three sources:


(i)	License fees, related to term (or time-based) and perpetual software license revenue;


(ii)	Maintenance fees, related 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, related to professional services related to implementation of our software, reimbursable travel and training.

Revenues are 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. Arrangements where a significant portion of the fee is due beyond 90 days from delivery are not considered to be fixed or determinable. Revenues from such arrangements is recognized as payments become due, assuming all other revenue recognition criteria have been met. Fees from term licenses are generally due in annual or, in certain cases, quarterly installments over the term of the agreement beginning on the effective date of the license. Accordingly, fees from term licenses are not considered to be fixed or determinable until they become due.

•

Collectability is probable. 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, revenues are deferred until collection becomes probable 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, for all arrangements that do not include services that are essential to the functionality of the software, the Company allocates revenues 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. The Company generally enters into term licenses ranging from 3 to 7 years. For term licenses with duration of one year or less, no VSOE of fair value for maintenance exists. The Company began using stated maintenance renewal rates in customers’ contracts during fiscal year 2008. Prior to that, customers’ contracts did not have stated maintenance renewal rates and the Company was unable to establish VSOE of maintenance. 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 VSOE of fair value for one or more undelivered elements does not exist, the total arrangement fee is not recognized until delivery of those elements occurs or when VSOE of fair value is established.

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.

When implementation services are sold with a license arrangement, we evaluate whether those services are essential to the functionality of the software. Prior to fiscal year 2008, implementation services were determined to be essential to the software because the implementation services were generally not available from other third party vendors. By the beginning of fiscal year 2008, third party vendors were providing implementation services for ClaimCenter and it was concluded that implementation services generally were not essential to the functionality of the ClaimCenter software. By the beginning of fiscal year 2011, third party vendors were providing implementation services for PolicyCenter and BillingCenter and it was concluded that implementation services generally were no longer essential to the functionality of the PolicyCenter and BillingCenter software. In certain offerings sold as fixed fee arrangements, the Company recognizes services revenues on a proportional performance basis as performance obligations are completed by using the ratio of labor hours to date as an input measure compared to total estimated labor hours for the consulting services.

In cases where professional services are deemed to be essential to the functionality of the software, the arrangement is accounted for using contract accounting until the essential services are complete. If reliable estimates of total project costs and the extent of progress toward completion can be made, the Company applies the percentage-of-completion method in recognizing the arrangement fee. The percentage toward completion is measured by using the ratio of service billings to date compared to total estimated service billings for the consulting services. Service billings approximate labor hours as an input measure since they are billed monthly on a time and material basis. For term licenses with license fees due in equal installments over the term, the license revenues subject to percentage-of-completion recognition includes only those payments that are due and payable within the reporting period. The fees related to the maintenance are recognized over the period the maintenance is provided.

When VSOE for maintenance has not been established and the arrangement includes implementation services which are deemed essential to the functionality of the software and it is reasonably assured that no loss will be incurred under the arrangement, revenues are recognized pursuant to the zero gross margin method. Under this method, revenues recognized are limited to the costs incurred for the implementation services. As a result, billed license and maintenance fees and the profit margin on the professional services are generally deferred until the essential services are completed and then recognized over the remaining term of the maintenance period.

If the Company cannot make reliable estimates of total project implementation and it is reasonably assured that no loss will be incurred under such arrangements, the zero profit margin method is applied whereby an amount of revenues equal to the incurred costs of the project is recognized as well as the incurred costs, producing a zero margin until project estimates become reliable. The percentage-of-completion method is applied when project estimates become reliable, resulting in a cumulative effect adjustment for deferred license revenues to the extent of progress toward completion, and the related deferred professional service margin is recognized in full as revenues. Such cumulative effect adjustment for license revenues was $3.2 million, $0.9 million and $0.4 million for the years ended July 31, 2013, 2012 and 2011, respectively, and for service revenues was $1.7 million, $0.9 million and $0.3 million for the years ended July 31, 2013, 2012 and 2011, respectively.

Deferred Revenues

Deferred revenues represent amounts billed to or collected from customers for which the related revenues have not been recognized because one or more of the revenue recognition criteria have not been met. The current portion of deferred revenues represents the amount that is expected to be recognized as revenues within one year from the balance sheet date. The Company generally invoices fees for licenses and maintenance to its customers in annual or, in certain cases, quarterly installments payable in advance. Accordingly, the deferred revenues 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 the products are also generally warranted 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. The Company has not incurred any warranty expenses since inception.

Advertising Costs

Advertising costs are expensed as incurred and amounted to approximately $0.1 million, $0.1 million and $0.3 million during the years ended July 31, 2013, 2012 and 2011, respectively.

Stock-Based Compensation

The Company recognizes compensation expense related to stock options and restricted stock units (“RSUs”) granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures. The RSUs are subject to time-based vesting, which generally occurs over a period of four years, and for those RSU awards granted prior to our IPO, a performance-based condition, which was satisfied 180 days after our IPO. The awards expire 10 years from the grant date. We estimate the grant date fair value, and the resulting stock-based compensation expense, of our stock options using the Black-Scholes option-pricing model. The grant date fair value of the stock-based awards is generally recognized using the accelerated multiple option approach over the requisite service period, which is generally the vesting period of the respective awards. Compensation cost for RSUs is generally recognized over the time-based vesting period regardless of the occurrence of the performance-based condition noted above for awards granted prior to IPO, since this condition is not subject to employment.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets related to excess tax benefits are recorded when utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount of which realization is more likely than not.

Accounting guidance related to accounting for uncertainties in income taxes provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. This interpretation also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

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

Earnings per Share

For the year ended July 31, 2013, the Company calculated basic earnings per share by dividing the net income 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 restricted stock units are considered to be common stock equivalents.

For the years ended July 31, 2012 and 2011, the Company’s basic and diluted earnings per share are presented in conformity with the two-class method, which is required because the Company issued securities other than common stock that participate in dividends with the common stock (“participating securities”), to compute the earnings per share attributable to common stockholders. The Company determined that it had participating securities in the form of noncumulative convertible preferred stock for the periods up to their conversion immediately prior to the closing of the Company’s IPO on January 30, 2012 when all convertible preferred stock was converted to common stock.

The two-class method requires that the Company calculate the earnings per share using net income attributable to the common stockholders, which will differ from the Company’s net income. Net income attributable to the common stockholders is generally equal to the net income less assumed periodic preferred stock dividends with any remaining earnings, after deducting assumed dividends, to be allocated on a pro rata basis between the outstanding common and preferred stock as of the end of each period. The basic earnings per share attributable to common stockholders is calculated by dividing the net income attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. The diluted net income per share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, options to purchase common stock and restricted stock units are considered to be common stock equivalents.

Recent Accounting Pronouncement

Presentation of Unrecognized Tax Benefits

In July 2013, the Financial Accounting Standards Board ("FASB") issued authoritative guidance that requires an entity to present an unrecognized tax benefit ("UTB"), or a portion of a UTB, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the UTB should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The guidance is effective prospectively for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. We do not expect this guidance to have a material impact on our consolidated financial statements.

Fair Value of Financial Instruments

12 Months Ended

Jul. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

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



	July 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(in thousands)
U.S. agency securities	$	37,087	$	21	$	(4	)	$	37,104
Asset-backed securities	4,522		—		(1		)	4,521
Commercial paper	35,777		11		(1		)	35,787
Corporate bonds	63,281		23		(14		)	63,290
Foreign government bonds	776		—		(1		)	775
Money market funds	33,216		—		—			33,216
Municipal debt securities	9,105		4		(14		)	9,095
Total	$	183,764	$	59	$	(35	)	$	183,788



	July 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
	(in thousands)
Money market funds	$	105,107	$	—	$	—	$	105,107
Certificates of deposit	3,726		—		—		3,726
Total	$	108,833	$	—	$	—	$	108,833

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 a continuous unrealized loss position:



	July 31, 2013
	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 agencies	$	6,697	$	(4	)	$	—	$	—	$	6,697	$	(4	)
Asset-backed securities	768		(1		)	—		—		768		(1		)
Commercial paper	1,597		(1		)	—		—		1,597		(1		)
Corporate bonds	18,902		(14		)	—		—		18,902		(14		)
Foreign government bonds	775		(1		)	—		—		775		(1		)
Municipal debt securities	6,911		(14		)	—		—		6,911		(14		)
Total	$	35,650	$	(35	)	$	—	$	—	$	35,650	$	(35	)

As of July 31, 2013, the Company had 27 investments in an 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 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, 2013 to be an other-than-temporary impairment, nor are any unrealized losses considered to be credit losses. The Company has recorded the securities at fair market value in its condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive income. Upon sale, amounts of gains and losses reclassified into earnings are determined based on specific identification of the securities sold. No gains or losses were realized from sales of securities in the periods presented.

The following table summarizes the contractual maturities of the Company’s available-for-sale securities as of July 31, 2013:



	Expected maturities for the year ending July 31,
	2014		2015		Thereafter		Total
	(in thousands)
U.S. agency securities	$	9,097	$	28,007	$	—	$	37,104
Asset-backed securities	2,421		2,100		—		4,521
Commercial paper	35,787		—		—		35,787
Corporate bonds	49,575		13,715		—		63,290
Foreign government bonds	775		—		—		775
Money market funds	33,216		—		—		33,216
Municipal debt securities	1,877		7,218		—		9,095
Total	$	132,748	$	51,040	$	—	$	183,788

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

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

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

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

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 and is based on Level 2 inputs.

We base the fair value of our Level 1 financial instruments, which are in active markets, using quoted market prices for identical instruments.

We obtain the fair value of our 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. Our professional pricing service gathers observable inputs for all of our 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.

We validate the quoted market prices provided by our primary pricing service by comparing their assessment of the fair values of our Level 2 investment portfolio balance against the fair values of our Level 2 investment portfolio balance provided by our investment managers. Our investment managers use similar techniques to our professional pricing service to derive pricing as described above.

We did not own any Level 3 financial assets or liabilities as of July 31, 2013 or 2012.

The following tables summarize the Company's financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy:



	July 31, 2013
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents:
Commercial paper	$	—	$	20,597	$	—	$	20,597
Corporate bonds	—		2,003		—		2,003
Money market funds	33,216		—		—		33,216
Short-term investments:
U.S. agency securities	—		9,097		—		9,097
Asset-backed securities	—		2,421		—		2,421
Commercial paper	—		15,190		—		15,190
Corporate bonds	—		47,572		—		47,572
Foreign government bonds	—		775		—		775
Municipal debt securities	—		1,877		—		1,877
Long-term investments:
U.S. agency securities	—		28,007		—		28,007
Asset-backed securities	—		2,100		—		2,100
Corporate bonds	—		13,715		—		13,715
Municipal debt securities	—		7,218		—		7,218
Total assets	$	33,216	$	150,572	$	—	$	183,788



	July 31, 2012
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents:
Money market funds	$	105,107	$	—	$	—	$	105,107
Certificates of deposit	3,726		—		—		3,726
Total assets	$	108,833	$	—	$	—	$	108,833

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Balance Sheet Components

12 Months Ended

Jul. 31, 2013

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Property and Equipment

Property and equipment consist of the following:



	July 31, 2013			July 31, 2012
	(in thousands)
Computer hardware	$	8,820		$	8,125
Software	4,460			3,599
Furniture and fixtures	2,666			1,854
Leasehold improvements	6,536			5,600
Total property and equipment	22,482			19,178
Less accumulated depreciation	(9,568		)	(7,254		)
Property and equipment, net	$	12,914		$	11,924

As of July 31, 2013 and 2012, no property and equipment was pledged as collateral against borrowings. Amortization of leasehold improvements is included in depreciation expense. Depreciation expense was $4.5 million, $2.6 million and $1.5 million during the years ended July 31, 2013, 2012 and 2011, respectively.

Goodwill and Intangible Assets

The following table presents changes in the carrying amount of goodwill:



	Total
	(in thousands)
Goodwill, July 31, 2012	$	—
Acquired goodwill	9,048
Goodwill, July 31, 2013	$	9,048

Refer to Note 10, Acquisition, for further details on goodwill acquired during the period.

Intangible assets consist of the following:



	July 31, 2013
	(in thousands)
Acquired technology:
Cost	$	7,200
Accumulated amortization	(321		)
Net	$	6,879

Amortization expense was $0.3 million, $0.3 million and $0.7 million during the years ended July 31, 2013, 2012 and 2011, respectively. Estimated aggregate amortization expense for each of the next five fiscal years is as follows:



	Future Amortization
Fiscal Year Ending July 31,	(in thousands)
2014	$	1,440
2015	1,440
2016	1,440
2017	1,440
2018	1,119
Thereafter	—
Total	$	6,879

Accrued Employee Compensation

Accrued employee compensation consists of the following:



	July 31, 2013		July 31, 2012
	(in thousands)
Accrued bonuses	$	13,072	$	12,718
Accrued commission	2,043		4,068
Accrued vacation	7,335		5,684
Payroll accruals	3,852		4,032
Total	$	26,302	$	26,502

Net Income per Share

12 Months Ended

Jul. 31, 2013

Earnings Per Share [Abstract]

Net Income 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, 2013, 2012 and 2011:



	Fiscal years ended July 31,
	2013		2012			2011
	(in thousands, except share and per share amounts)
Numerator:
Net income	$	15,383	$	15,200		$	35,558
Non-cumulative dividends to preferred stockholders	—		(1,574		)	(3,291		)
Undistributed earnings allocated to preferred stockholders	—		(3,544		)	(20,568		)
Net income, basic	15,383		10,082			11,699
Adjustments to net income for dilutive options and restricted stock options	—		467			1,747
Net income, diluted	$	15,383	$	10,549		$	13,446
Net income per share:
Basic	$	0.27	$	0.29		$	0.83
Diluted	$	0.25	$	0.25		$	0.76



	Fiscal years ended July 31,
	2013	2012	2011
	(in thousands, except share and per share amounts)
Denominator:
Weighted average shares used in computing net income per share:
Basic	56,331,018	34,774,983	14,064,055
Weighted average effect of diluted stock options	3,428,972	4,380,549	2,682,215
Weighted average effect of dilutive restricted stock units	2,183,097	2,323,787	1,010,622
Weighted average effect of dilutive stock warrants ⁽¹⁾	—	29,866	6,967
Diluted	61,943,087	41,509,185	17,763,859


⁽¹⁾	Series C convertible preferred stock warrants were automatically converted to equivalent common stock warrants upon the Company’s IPO on January 24, 2012 and converted or cancelled as of April 30, 2012.

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



	Fiscal years ended July 31,
	2013	2012	2011
Stock options to purchase common stock	320,325	329,671	1,975,982
Restricted stock units	57,829	86,273	163,031

Commitments and Contingencies

12 Months Ended

Jul. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

The following table presents a summary of the Company’s contractual obligations and commitments as of July 31, 2013:



	Lease Obligations		Royalty Obligations⁽¹⁾		Purchase Commitments ⁽²⁾		Total
Fiscal Year Ending July 31,	(in thousands)
2014	$	4,967	$	429	$	296	$	5,692
2015	4,778		414		183		5,375
2016	4,812		105		—		4,917
2017	4,693		—		—		4,693
2018	4,766		—		—		4,766
Thereafter	4,828		—		—		4,828
Total	$	28,844	$	948	$	479	$	30,271


⁽¹⁾	Royalty obligations primarily represent our obligations under our non-cancelable agreements related to software used in certain revenue-generating agreements.


⁽²⁾	Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent non-cancelable commitments for which a penalty would be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement.

Leases

The Company leases certain facilities and equipment under operating leases. The Company entered into an operating lease agreement in September 2007 for its corporate headquarters in California that expired in July 2012. In connection with the lease, the Company opened a letter of credit which expired upon the expiration of the lease in July 2012. On November 23, 2009, the Company entered into a sublease agreement for additional conference space expiring in July 2012. On December 5, 2011, the Company entered into a seven-year lease for a facility to serve as its new corporate headquarters, located in Foster City, California, for approximately 97,674 square feet of space commencing August 1, 2012. In connection with the new lease, the Company opened an unsecured letter of credit with Silicon Valley Bank for $1.2 million.

Lease expense for all worldwide facilities and equipment, which is being recognized on a straight-line basis over terms of the various leases, was $5.3 million, $4.0 million and $2.3 million during the years ended July 31, 2013, 2012 and 2011, respectively. This expense is net of sublease income of $1.2 million for each of the years ended July 31, 2012 and 2011.

Letters of Credit

In addition to the unsecured letter of credit noted above, the Company had no and three outstanding letters of credit required by certain customers to secure contractual commitments and prepayments as of July 31, 2013 and 2012, respectively. Certain of these letters of credit were fully secured by cash balances, which were classified as restricted cash in our consolidated balance sheets as of July 31, 2012. In July 2012, the Company entered into an unsecured letter of credit agreement related to a customer arrangement for PLN 10.0 million (approximately $3.1 million as of July 31, 2013) to secure contractual commitments and prepayments. No amounts were outstanding under our unsecured letters of credit as of July 31, 2013 or July 31, 2012.

Legal Proceedings

In December 2007, Accenture Global Services GmbH and Accenture LLP (collectively, “Accenture”), a competitor, filed a lawsuit against the Company in the U.S. District Court for the District of Delaware (the “Delaware Court") (Accenture Global Services GmbH and Accenture LLP v. Guidewire Software, Inc., Case No 07-826-SLR). Accenture alleged infringement of U.S. Patent No. 7,013,284 (the “ '284 patent”), among others, by our products; trade-secret misappropriation; and tortious interference with business relations. Accenture sought damages and an injunction. The Company denied Accenture's claims, and asserted counterclaims seeking a declaration that our products do not infringe the patents, that the patents are invalid and that the '284 patent is unenforceable. We also asserted counterclaims against Accenture for breach of contract and trade secret misappropriation. On May 31, 2011, the Delaware Court granted the Company's motion for summary judgment finding that Accenture's '284 patent is invalid. In July 2011, Accenture filed an appeal to the United States Court of Appeals for the Federal Circuit (the “Appeals Court”) of the Delaware Court's judgment of invalidity of the '284 patent.

In October 2011, the Company agreed with Accenture to resolve all outstanding litigation concerning their respective insurance claims management software. As part of the settlement, the parties agreed to a royalty free cross license of all then-current patents and patent applications. In connection with the settlement, the Company has paid $10.0 million to Accenture with a potential additional payment based on the final outcome of Accenture’s appeal regarding the validity of its ‘284 patent. On September 5, 2013, the Appeals Court ruled in the Company's favor, affirming the decision of the District Court and holding the '284 patent invalid. Accenture may still request United States Supreme Court review or rehearing by the full Federal Circuit sitting en banc, and, if Accenture is allowed to appeal and is ultimately successful, then the Company has agreed to pay Accenture an additional $20.0 million. Otherwise, no further payments would be due in connection with the settlement. The Company expensed the $10.0 million litigation provision in fiscal year 2011 as it believes that no future benefit is attributable to the cross license.

In addition to the matters described above, from time to time, the Company is involved in various other legal proceedings and receives claims from time to time, arising from the normal course of business activities. The Company has accrued for estimated losses in the accompanying consolidated financial statements for matters with respect to which we believe the likelihood of an adverse outcome is probable and the amount of the loss is reasonably estimable.

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 are outstanding as of July 31, 2013 and 2012. 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.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stockholders' Equity and Stock-based Compensation

12 Months Ended

Jul. 31, 2013

Stockholders' Equity and Stock-based Compensation [Abstract]

Stockholders' Equity and Stock-based Compensation

Stockholders’ Equity and Stock-based Compensation

Stock-based Compensation Expense

Stock-based compensation expense related to all employee and non-employee stock-based awards is as follows:



	Fiscal years ended July 31,
	2013		2012		2011
Stock-based compensation expense:	(in thousands)
Cost of maintenance revenues	$	1,217	$	379	$	120
Cost of services revenues	12,493		3,741		1,264
Research and development	9,131		3,759		1,372
Sales and marketing	5,970		2,936		903
General and administrative	9,588		7,443		3,021
Total stock-based compensation expense	38,399		18,258		6,680
Tax benefit from stock-based compensation	12,933		7,137		2,646
Total stock-based compensation expense, net of tax effect	$	25,466	$	11,121	$	4,034

Stock-based compensation for the year ended July 31, 2013 includes $1.0 million of expense related to the modification of RSUs upon accelerated vesting terms for the retirement of one of the Company's officers, $1.0 million reversal of previously recognized expense for unvested awards upon termination of one of the Company's officers, and $1.7 million of expense for multiple performance-based awards which were mainly tied to fiscal year 2013 financial results. Amounts for the year ended July 31, 2012 include a stock compensation expense of $1.2 million related to service performed prior to the IPO for RSUs granted to the Company’s Chief Executive Officer whereby the performance condition for these grants was satisfied upon the Company’s IPO closing, and a $0.9 million related to a change in estimated forfeiture rate upon the IPO event.

As of July 31, 2013, total unrecognized compensation cost, adjusted for estimated forfeitures, was as follows:



	As of July 31, 2013
	Unrecognized Expense		Average Expected Recognition Period
	(in thousands)		(in years)
Restricted stock units	$	41,135	1.3
Stock options	2,699		1.0
	$	43,834

RSUs

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



	RSUs Outstanding
	Number of RSUs Outstanding		Weighted Average Grant Date Fair Value
Balance as of July 31, 2012	3,992,177		$	8.00
Granted	2,024,221		33.68
Released	(1,623,182	)	9.88
Canceled	(365,615	)	17.72
Balance as of July 31, 2013	4,027,601		$	19.27

The weighted average per share grant date fair value of RSUs granted during each of the fiscal years ended July 31, 2013, 2012 and 2011was $33.68, $13.65 and $4.70, respectively. The fair value of RSUs released during the years ended July 31, 2013, 2012 and 2011 was $56.2 million, $41.2 million and $0.0 million, respectively.

On March 9, 2011, the Company granted a series of three awards totaling 878,800 performance-based RSUs to its President and Chief Executive Officer. Each of these RSUs was subject to time-based vesting and performance vesting. In addition, each of the RSUs was subject to a separate performance condition, as follows:


•	The RSUs covering 502,200 shares of common stock were subject to satisfaction of an IPO of the Company’s equity securities, which occurred in January 2012;


•	The RSUs covering 251,100 shares of common stock were subject to full and final dismissal or final adjudication of certain specified litigation to the satisfaction of the Board, which occurred in July 2011; and


•	The RSUs covering 125,500 shares of common stock were subject to satisfaction of a pre-established revenue target for fiscal year 2012, which was satisfied upon close of fiscal year 2012.

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, 2012	6,486,641		$	3.74	6.1	$	142,321
Granted	377,412		32.36
Exercised	(2,905,296	)	3.12
Canceled	(195,529	)	10.55
Balance as of July 31, 2013	3,763,228		$	6.74	5.7	$	139,315
Vested and expected to vest as of July 31, 2013	3,714,254		$	6.56	5.7	$	138,163
Exercisable as of July 31, 2013	3,413,948		$	4.47	5.4	$	134,139


⁽¹⁾	Aggregate intrinsic value represents the difference between the exercise price of the option and the Company’s closing stock price of $43.76 and $25.66 on July 31, 2013 and July 31, 2012, respectively.

The options exercisable as of July 31, 2013 include options that are exercisable prior to vesting. The total intrinsic value of options exercised was approximately $86.0 million, $31.2 million and $2.6 million for the years ended July 31, 2013, 2012 and 2011, respectively. The weighted average grant date fair value of options granted was $14.06, $4.51 and $3.46 for the years ended July 31, 2013, 2012 and 2011, respectively.

Additional information regarding options outstanding as of July 31, 2013 is as follows:



	Options Outstanding				Options Exercisable
Exercise Price	Number of Options Outstanding	Remaining Contractual Life (Years)	Exercise Price per Share		Number of Options Exercisable	Exercise Price per Share
$0.16—1.00	446,350	2.4	$	0.54	446,350	$	0.54
1.25—2.56	107,600	3.1	2.02		107,600	2.02
2.74	752,484	4.0	2.74		752,484	2.74
3.50	203,068	4.7	3.50		203,068	3.50
3.73	604,396	5.6	3.73		595,269	3.73
3.92	510,888	6.4	3.92		499,488	3.92
4.50—7.50	539,978	7.7	6.90		518,994	6.94
8.65—11.00	223,959	8.1	8.87		221,250	8.88
11.00--33.00	322,490	9.1	31.84		54,930	32.25
35.00 and over	52,015	9.3	36.42		14,515	35
	3,763,228	5.7	$	6.74	3,413,948	$	4.47

Valuation of Awards

Determining Fair Value of Stock Options

The fair value of the common stock underlying the stock options and restricted stock units granted prior to the IPO have been determined by the Board. Because there had been no public market for the Company’s common stock, the Board had determined the fair value of the common stock at the time of the grant by considering a number of objective and subjective factors including valuations of comparable companies, sales of redeemable convertible preferred stock to unrelated third parties, operating and financial performance, lack of liquidity of capital stock and general and industry-specific economic outlook, amongst other factors. The fair value of the underlying common stock was determined by the Board until the Company’s common stock was listed on the New York Stock Exchange upon IPO. Awards granted subsequent to the Company’s IPO reflect the fair value of common stock as of the end of trading on the grant date.

The fair value of each grant of stock options was determined by the Company and the Board using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment to determine.

Valuation Method—The Company estimates the fair value of its stock options using the Black-Scholes option-pricing model.

Expected Term—The expected term represents the period that the stock-based awards are expected to be outstanding. The Company uses the simplified method to determine the expected term for its option grants as provided by the Securities and Exchange Commission. The simplified method calculates the expected term as the average of the time-to-vesting and the contractual life of the options. The Company uses the simplified method to determine its expected term because of its limited history of stock option exercise activity.

Expected Volatility—The expected volatility is derived from the historical stock volatilities of several comparable publicly listed peers over a period approximately equal to the expected term of the options as the Company has limited trading history by which to determine the volatility of its own common stock.

Risk-Free Interest Rate— The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the options.

Expected Dividend—The expected dividend is zero as the Company has never paid dividends and has no expectations to do so.

Summary of Assumptions—The fair value of the employee stock options were estimated on the grant dates using a Black-Scholes option-pricing model with the following weighted average assumptions:



	Fiscal years ended July 31,
	2013	2012	2011
Expected life (in years)	5.1 - 6.1	5.3 - 6.3	6.03
Risk-free interest rate	0.6% - 1.2%	1.2% - 1.5%	1.9%
Expected volatility	45.1% - 48.7%	44.1% - 46.4%	46.1%
Expected dividend yield	—%	—%	—%

Forfeiture Rate—The Company estimates its forfeiture rate based on an analysis of its actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior, and other factors. The impact from a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual number of future forfeitures differs from that estimated, the Company may be required to record adjustments to stock-based compensation expense in future periods.

Convertible Preferred Stock

Upon the closing of the Company's IPO on January 30, 2012, all outstanding convertible preferred stock was converted into 25,357,721 shares of common stock on a one-to-one basis. As of July 31, 2013 and 2012, the Company was authorized to issue 25,000,000 shares of convertible preferred stock, respectively, with a par value of $0.0001 per share. As of July 31, 2013 and 2012, no shares of convertible preferred stock were issued and outstanding.

Common Stock Reserved for Future Issuance

As of July 31, 2013 and 2012, the Company was authorized to issue 500,000,000 common shares with a par value of $0.0001 per share, respectively, and 57,909,277 and 53,956,608 common shares were issued and outstanding, respectively. As of July 31, 2013 and 2012, the Company had reserved shares of common stock, on an as-if-converted basis, for future issuance as follows:



	July 31, 2013	July 31, 2012
Exercise of stock options to purchase common stock	3,763,228	6,486,641
Vesting of restricted stock units	4,027,601	3,992,177
Issuances of shares available under stock plans	9,194,058	7,655,332
Total common stock reserved for issuance	16,984,887	18,134,150

Equity Incentive Plans

In February 2007, the Company’s board of directors (“Board”) adopted and the stockholders approved the 2006 Stock Plan (“2006 Plan”) as an amendment and restatement of the stockholder-approved 2002 Stock Option/Stock Issuance Plan, as amended, which provides for the issuance of incentive and nonstatutory options to employees and nonemployees of the Company and under which 13,920,757 shares had been reserved for issuance as of July 31, 2013.

In July 2009, the Board adopted and the stockholders approved the 2009 Stock Plan (“French Plan”). Under the French Plan, 31,000 shares had been reserved for issuance as of July 31, 2013. The number of shares exercised and issued under the French Plan reduced the corresponding number of shares available under the 2006 Plan.

In June 2010, the Board adopted and the stockholders approved the 2010 Restricted Stock Unit Plan (“2010 Plan”). As of July 31, 2013, the Company had reserved 3,908,028 shares of common stock for issuance under the 2010 Plan.

On September 14, 2011, the Board, upon the recommendation of the Compensation Committee of the Board (“Committee”), adopted the 2011 Stock Plan (“2011 Plan”), which was subsequently approved by the Company’s stockholders in January 2012. The 2011 Plan provides flexibility to the Committee to use various 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. In addition, the number of shares remaining available for grant under the 2006 Plan and 2010 Plan immediately prior to the closing of the IPO were added to the shares available under the 2011 Plan. The number of shares remaining available for grant under the French Plan expired upon the IPO. 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. With the adoption of the 2011 Plan upon the completion of the Company’s IPO, both option and RSU grants now reduce the 2011 Plan reserve. As of July 31, 2013, the Company had reserved 11,760,300 shares of common stock for issuance under the 2011 Plan.

The shares the Company issues under the 2011 Plan will be authorized but unissued shares or shares that are reacquired. The shares of common stock underlying any awards under the 2011 Plan, 2010 Plan and 2006 Plan that are forfeited, canceled, held back upon exercise or settlement of an award to satisfy the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without any issuance of stock or are otherwise terminated (other than by exercise) are added back to the shares of common stock available for issuance under the 2011 Plan. The shares of common stock underlying any outstanding awards under the French Plan that are forfeited, canceled or otherwise not issued will expire and not be available for future issuance.

No awards may be granted under the 2011 Plan after the date that is 10 years from the effectiveness of the plan. No awards under the 2011 Plan were granted prior to the Company’s IPO. Following the closing of the IPO, no additional awards will be made under the 2006 Plan, French Plan and 2010 Plan.

Income Taxes

12 Months Ended

Jul. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

The Company’s income before provision for income taxes for the years ended July 31, 2013, 2012 and 2011 is as follows:



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
Domestic	$	12,814	$	17,033	$	1,077
International	4,398		6,146		7,219
Income before provision for income taxes	$	17,212	$	23,179	$	8,296

The provision for income taxes consists of the following:



	Fiscal years ended July 31,
	2013			2012			2011
	(in thousands)
Current:
U.S. federal	$	1,296		$	—		$	192
State	999			544			259
Foreign	3,479			1,522			404
Total current	5,774			2,066			855
Deferred:
U.S. federal	(3,416		)	5,292			(24,322		)
State	5			(266		)	(3,326		)
Foreign	(534		)	887			(469		)
Total deferred	(3,945		)	5,913			(28,117		)
Total provision for (benefit from) income taxes	$	1,829		$	7,979		$	(27,262	)

The total income tax expense differs from the amounts computed by applying the statutory federal income tax rate of 35% during the years ended July 31, 2013, 2012 and 2011 as follows:



	Fiscal years ended July 31,
	2013			2012			2011
	(in thousands)
Computed tax expense	$	6,024		$	8,113		$	2,906
Nondeductible items and other	779			877			475
State taxes, net of federal benefit	(1,336		)	(841		)	477
Foreign income taxed at different rates	1,405			258			(2,593		)
Tax credits	(7,199		)	(1,356		)	(1,330		)
Change in valuation allowance	2,156			928			(27,197		)
Total provision for (benefit from) income taxes	$	1,829		$	7,979		$	(27,262	)

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



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
Accruals and reserves	$	3,647	$	2,273	$	8,307
Stock-based compensation	11,672		5,645		—
Deferred revenues	510		5,088		2,373
Property & equipment	—		153		—
State taxes	—		165		121
Net operating loss carryforwards	2,244		2,957		12,768
Tax credits	14,233		9,192		6,908
Total deferred tax assets	32,306		25,473		30,477
Less valuation allowance	4,874		2,718		1,790
Net deferred tax assets	27,432		22,755		28,687
Less deferred tax liabilities:
Property & equipment	440		—		570
Intangible assets	2,268		—		—
Foreign deferred revenue	736		550		—
Total net deferred tax assets	$	23,988	$	22,205	$	28,117

During the years ended July 31, 2013, 2012 and 2011, the Company was able to consider positive evidence in determining the realizability of its deferred tax assets, including projections for future growth, and determined a significant portion of the valuation allowance was not required. A corresponding benefit of $27.2 million was recorded for the year ended July 31, 2011. A valuation allowance of $4.9 million, $2.7 million and $1.8 million remained as of July 31, 2013, 2012, and 2011, respectively, for California research and development credits that were not more likely than not realizable.

The Company had net operating loss carryforwards of the following:



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
U.S. federal	$	133,660	$	46,110	$	29,020
California	80,561		40,021		34,655
Other states	19,831		7,953		3,996
Total net operating loss carryforwards	$	234,052	$	94,084	$	67,671

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



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
U.S. federal	$	12,973	$	6,565	$	5,648
California	11,980		7,558		4,271
Total R&D credit carryforwards	$	24,953	$	14,123	$	9,919

The U.S. federal and California net operating loss carryforwards will start to expire in 2028 and 2016, respectively. The U.S. federal R&D credit will start to expire in 2023. California R&D tax credits have no expiration.

The excess tax benefits associated with stock option exercises are recorded directly to stockholders’ equity only when realized. As a result, the pre-tax excess tax benefits included in federal and California net operating loss carryforwards but not reflected in deferred tax assets for fiscal year 2013 are $131.8 million and $56.6 million, respectively.

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. Nevertheless, 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, 2013, U.S. income taxes were not provided for on the cumulative total of $12.4 million of undistributed earnings from certain foreign subsidiaries. As of July 31, 2013, the unrecognized deferred tax liability for these earnings was approximately $1.1 million.

Unrecognized Tax Benefits

The following table summarizes the activity related to unrecognized tax benefits:



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
Unrecognized benefit - beginning of period	$	3,937	$	2,419	$	335
Gross increases - prior period tax positions	370		478		1,436
Gross increases - current period tax positions	2,420		1,040		648
Unrecognized benefit - end of period	$	6,727	$	3,937	$	2,419

During the year ended July 31, 2013, the Company’s unrecognized tax benefits increased by $2.4 million, primarily associated with the Company’s federal and California R&D credits. As of July 31, 2013, the Company had unrecognized tax benefits of $3.3 million that, if recognized, would affect the Company’s effective tax rate.

The Company or one of its subsidiaries files income taxes in the U.S. federal jurisdiction and various states 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 2013. Substantially all material foreign income tax matters in Australia have been concluded through the year ended July 31, 2007. The Company has been audited in Canada and substantially concluded all material income tax matters through July 31, 2009.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Employee 401(k) Plan	12 Months Ended
Employee 401(k) Plan	Jul. 31, 2013
Compensation and Retirement Disclosure [Abstract]
Employee 401(k) Plan	Employee 401(k) Plan The Company’s employee savings and retirement plan is qualified under Section 401 of the Internal Revenue Code. The plan is available to all regular employees on the Company’s U.S. payroll and provides employees with tax-deferred salary deductions and alternative investment options. Employees may contribute up to 25% of their salary up to the statutory prescribed annual limit. In calendar years 2013 and 2012, the Company match for employees’ contributions to the plan was up to $2,000 per participant per calendar year.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Segment Information

12 Months Ended

Jul. 31, 2013

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 revenues 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.

The following table sets forth revenues by country based on the billing address of the customer:



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
United States	$	172,793	$	127,473	$	89,714
Canada	42,632		35,690		24,632
Australia	15,316		19,619		17,388
United Kingdom	20,660		16,223		17,362
Other	49,248		33,056		23,376
Total revenues	$	300,649	$	232,061	$	172,472

No other country accounted for more than 10% of revenues during the years ended July 31, 2013, 2012 and 2011.

The following table sets forth the Company’s property and equipment, net by geographic region:



	July 31, 2013		July 31, 2012
	(in thousands)
North America	$	11,353	$	11,522
Europe	1,276		388
Asia Pacific	285		14
Total	$	12,914	$	11,924

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Acquisition

12 Months Ended

Jul. 31, 2013

Business Combination [Abstract]

Acquisition

On May 10, 2013, the Company purchased all of the outstanding equity interests of Millbrook, Inc., a privately held provider of data models and platforms, technology accelerators and business intelligence solutions for P&C insurers. The aggregate cost of the acquisition was $14.7 million net of acquired cash. In addition, the Company issued $3.7 million in RSUs, vesting of which is subject to time-based vesting requirements and therefore are excluded from the purchase consideration. The related value is recognized as compensation expense over the requisite service period. The Company believes that the acquisition of Millbrook will enhance reporting capabilities of our software. The results of Millbrook's operations from May 10, 2013 to July 31, 2013 are included in the Company's results for the fourth quarter of fiscal year 2013 and were not material. Transaction expenses of $0.7 million were expensed as incurred.

The allocation of the purchase price is preliminary and is therefore subject to change. The purchase price remains subject to post-closing adjustments related to the changes in the fair value of working capital as of the closing date. The aggregate cost of the acquisition, net of acquired cash, was allocated as follows:



	Total Purchase Price Allocation			Estimated Useful Lives
	(in thousands)			(in years)
Assets acquired, net	$	590		n/a
Developed technology	7,200			5.0
Deferred tax liability	(2,094		)	n/a
Goodwill	9,048			n/a
Total purchase price	$	14,744

Management assigned preliminary fair values to the identifiable intangible assets by applying the income approach. This fair value measurement is based on significant inputs that are 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 pricing projections of future products, expected customer interest, a discount rate that is representative of the weight average cost of capital, and a long-term sustainable growth rate based on market analysis. The Company is amortizing the acquired intangible asset on a straight-line basis over its estimated useful life.

The pro forma results of operations have not been presented because the effects of the business combination described above were not material to our consolidated results of operations.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

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

12 Months Ended

Jul. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business

Public Offerings

Basis of Presentation

Use of Estimates

Foreign Currency Translation

Cash, Cash Equivalents, investments and restricted cash

Cash, Cash Equivalents, Investments and Restricted Cash

Property and Equipment

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



Computer hardware		3 years
Software		3 years
Furniture and fixtures		3 years
Leasehold improvements		Shorter of the lease term or estimated useful life

Product Development Costs

Impairment of Long-Lived Assets, Intangible Assets and Goodwill

We acquired goodwill during the fourth quarter of fiscal 2013. We did not recognize any goodwill impairment losses in fiscal 2013.

Concentration of Credit Risk

Accounts Receivable and Allowance for Doubtful Accounts

Revenue Recognition

Revenues are derived from three sources:


(i)	License fees, related to term (or time-based) and perpetual software license revenue;


(ii)	Maintenance fees, related 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, related to professional services related to implementation of our software, reimbursable travel and training.

Revenues are 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.

•

Advertising costs are expensed as incurred and amounted to approximately $0.1 million, $0.1 million and $0.3 million during the years ended July 31, 2013, 2012 and 2011, respectively.

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 income.

Earnings per Share

Recent Accounting Pronouncements

Recent Accounting Pronouncement

Presentation of Unrecognized Tax Benefits

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

12 Months Ended

Jul. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Estimated useful lives of property and equipment

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



Computer hardware		3 years
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, 2013

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, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(in thousands)
U.S. agency securities	$	37,087	$	21	$	(4	)	$	37,104
Asset-backed securities	4,522		—		(1		)	4,521
Commercial paper	35,777		11		(1		)	35,787
Corporate bonds	63,281		23		(14		)	63,290
Foreign government bonds	776		—		(1		)	775
Money market funds	33,216		—		—			33,216
Municipal debt securities	9,105		4		(14		)	9,095
Total	$	183,764	$	59	$	(35	)	$	183,788



	July 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
	(in thousands)
Money market funds	$	105,107	$	—	$	—	$	105,107
Certificates of deposit	3,726		—		—		3,726
Total	$	108,833	$	—	$	—	$	108,833

Schedule of Unrealized Loss on Investments



	July 31, 2013
	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 agencies	$	6,697	$	(4	)	$	—	$	—	$	6,697	$	(4	)
Asset-backed securities	768		(1		)	—		—		768		(1		)
Commercial paper	1,597		(1		)	—		—		1,597		(1		)
Corporate bonds	18,902		(14		)	—		—		18,902		(14		)
Foreign government bonds	775		(1		)	—		—		775		(1		)
Municipal debt securities	6,911		(14		)	—		—		6,911		(14		)
Total	$	35,650	$	(35	)	$	—	$	—	$	35,650	$	(35	)

Investments Classified by Contractual Maturity Date

The following table summarizes the contractual maturities of the Company’s available-for-sale securities as of July 31, 2013:



	Expected maturities for the year ending July 31,
	2014		2015		Thereafter		Total
	(in thousands)
U.S. agency securities	$	9,097	$	28,007	$	—	$	37,104
Asset-backed securities	2,421		2,100		—		4,521
Commercial paper	35,787		—		—		35,787
Corporate bonds	49,575		13,715		—		63,290
Foreign government bonds	775		—		—		775
Money market funds	33,216		—		—		33,216
Municipal debt securities	1,877		7,218		—		9,095
Total	$	132,748	$	51,040	$	—	$	183,788

Company's financial instruments measured at fair value on a recurring basis

The following tables summarize the Company's financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy:



	July 31, 2013
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents:
Commercial paper	$	—	$	20,597	$	—	$	20,597
Corporate bonds	—		2,003		—		2,003
Money market funds	33,216		—		—		33,216
Short-term investments:
U.S. agency securities	—		9,097		—		9,097
Asset-backed securities	—		2,421		—		2,421
Commercial paper	—		15,190		—		15,190
Corporate bonds	—		47,572		—		47,572
Foreign government bonds	—		775		—		775
Municipal debt securities	—		1,877		—		1,877
Long-term investments:
U.S. agency securities	—		28,007		—		28,007
Asset-backed securities	—		2,100		—		2,100
Corporate bonds	—		13,715		—		13,715
Municipal debt securities	—		7,218		—		7,218
Total assets	$	33,216	$	150,572	$	—	$	183,788



	July 31, 2012
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents:
Money market funds	$	105,107	$	—	$	—	$	105,107
Certificates of deposit	3,726		—		—		3,726
Total assets	$	108,833	$	—	$	—	$	108,833

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Balance Sheet Components (Tables)

12 Months Ended

Jul. 31, 2013

Balance Sheet Related Disclosures [Abstract]

Property and equipment

Property and equipment consist of the following:



	July 31, 2013			July 31, 2012
	(in thousands)
Computer hardware	$	8,820		$	8,125
Software	4,460			3,599
Furniture and fixtures	2,666			1,854
Leasehold improvements	6,536			5,600
Total property and equipment	22,482			19,178
Less accumulated depreciation	(9,568		)	(7,254		)
Property and equipment, net	$	12,914		$	11,924

Goodwill and Intangible Assets

The following table presents changes in the carrying amount of goodwill:



	Total
	(in thousands)
Goodwill, July 31, 2012	$	—
Acquired goodwill	9,048
Goodwill, July 31, 2013	$	9,048

Refer to Note 10, Acquisition, for further details on goodwill acquired during the period.

Intangible assets consist of the following:



	July 31, 2013
	(in thousands)
Acquired technology:
Cost	$	7,200
Accumulated amortization	(321		)
Net	$	6,879

Future Amortization Expense

Estimated aggregate amortization expense for each of the next five fiscal years is as follows:



	Future Amortization
Fiscal Year Ending July 31,	(in thousands)
2014	$	1,440
2015	1,440
2016	1,440
2017	1,440
2018	1,119
Thereafter	—
Total	$	6,879

Accrued Employee Compensation

Accrued employee compensation consists of the following:



	July 31, 2013		July 31, 2012
	(in thousands)
Accrued bonuses	$	13,072	$	12,718
Accrued commission	2,043		4,068
Accrued vacation	7,335		5,684
Payroll accruals	3,852		4,032
Total	$	26,302	$	26,502

Net Income per Share (Tables)

12 Months Ended

Jul. 31, 2013

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, 2013, 2012 and 2011:



	Fiscal years ended July 31,
	2013		2012			2011
	(in thousands, except share and per share amounts)
Numerator:
Net income	$	15,383	$	15,200		$	35,558
Non-cumulative dividends to preferred stockholders	—		(1,574		)	(3,291		)
Undistributed earnings allocated to preferred stockholders	—		(3,544		)	(20,568		)
Net income, basic	15,383		10,082			11,699
Adjustments to net income for dilutive options and restricted stock options	—		467			1,747
Net income, diluted	$	15,383	$	10,549		$	13,446
Net income per share:
Basic	$	0.27	$	0.29		$	0.83
Diluted	$	0.25	$	0.25		$	0.76



	Fiscal years ended July 31,
	2013	2012	2011
	(in thousands, except share and per share amounts)
Denominator:
Weighted average shares used in computing net income per share:
Basic	56,331,018	34,774,983	14,064,055
Weighted average effect of diluted stock options	3,428,972	4,380,549	2,682,215
Weighted average effect of dilutive restricted stock units	2,183,097	2,323,787	1,010,622
Weighted average effect of dilutive stock warrants ⁽¹⁾	—	29,866	6,967
Diluted	61,943,087	41,509,185	17,763,859


⁽¹⁾	Series C convertible preferred stock warrants were automatically converted to equivalent common stock warrants upon the Company’s IPO on January 24, 2012 and converted or cancelled as of April 30, 2012.

Outstanding antidilutive shares of common stock equivalents



	Fiscal years ended July 31,
	2013	2012	2011
Stock options to purchase common stock	320,325	329,671	1,975,982
Restricted stock units	57,829	86,273	163,031

Commitments and Contingencies (Tables)

12 Months Ended

Jul. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Future commitments and obligations under the operating leases

The following table presents a summary of the Company’s contractual obligations and commitments as of July 31, 2013:



	Lease Obligations		Royalty Obligations⁽¹⁾		Purchase Commitments ⁽²⁾		Total
Fiscal Year Ending July 31,	(in thousands)
2014	$	4,967	$	429	$	296	$	5,692
2015	4,778		414		183		5,375
2016	4,812		105		—		4,917
2017	4,693		—		—		4,693
2018	4,766		—		—		4,766
Thereafter	4,828		—		—		4,828
Total	$	28,844	$	948	$	479	$	30,271


⁽¹⁾	Royalty obligations primarily represent our obligations under our non-cancelable agreements related to software used in certain revenue-generating agreements.


⁽²⁾	Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent non-cancelable commitments for which a penalty would 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, 2013

Stockholders' Equity and Stock-based Compensation [Abstract]

Stock-based compensation expense

Stock-based compensation expense related to all employee and non-employee stock-based awards is as follows:



	Fiscal years ended July 31,
	2013		2012		2011
Stock-based compensation expense:	(in thousands)
Cost of maintenance revenues	$	1,217	$	379	$	120
Cost of services revenues	12,493		3,741		1,264
Research and development	9,131		3,759		1,372
Sales and marketing	5,970		2,936		903
General and administrative	9,588		7,443		3,021
Total stock-based compensation expense	38,399		18,258		6,680
Tax benefit from stock-based compensation	12,933		7,137		2,646
Total stock-based compensation expense, net of tax effect	$	25,466	$	11,121	$	4,034

Schedule of Unrecognized Compensation Cost, Nonvested Awards

As of July 31, 2013, total unrecognized compensation cost, adjusted for estimated forfeitures, was as follows:



	As of July 31, 2013
	Unrecognized Expense		Average Expected Recognition Period
	(in thousands)		(in years)
Restricted stock units	$	41,135	1.3
Stock options	2,699		1.0
	$	43,834

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

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



	RSUs Outstanding
	Number of RSUs Outstanding		Weighted Average Grant Date Fair Value
Balance as of July 31, 2012	3,992,177		$	8.00
Granted	2,024,221		33.68
Released	(1,623,182	)	9.88
Canceled	(365,615	)	17.72
Balance as of July 31, 2013	4,027,601		$	19.27

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, 2012	6,486,641		$	3.74	6.1	$	142,321
Granted	377,412		32.36
Exercised	(2,905,296	)	3.12
Canceled	(195,529	)	10.55
Balance as of July 31, 2013	3,763,228		$	6.74	5.7	$	139,315
Vested and expected to vest as of July 31, 2013	3,714,254		$	6.56	5.7	$	138,163
Exercisable as of July 31, 2013	3,413,948		$	4.47	5.4	$	134,139


⁽¹⁾	Aggregate intrinsic value represents the difference between the exercise price of the option and the Company’s closing stock price of $43.76 and $25.66 on July 31, 2013 and July 31, 2012, respectively.

Options outstanding by exercise price range

Additional information regarding options outstanding as of July 31, 2013 is as follows:



	Options Outstanding				Options Exercisable
Exercise Price	Number of Options Outstanding	Remaining Contractual Life (Years)	Exercise Price per Share		Number of Options Exercisable	Exercise Price per Share
$0.16—1.00	446,350	2.4	$	0.54	446,350	$	0.54
1.25—2.56	107,600	3.1	2.02		107,600	2.02
2.74	752,484	4.0	2.74		752,484	2.74
3.50	203,068	4.7	3.50		203,068	3.50
3.73	604,396	5.6	3.73		595,269	3.73
3.92	510,888	6.4	3.92		499,488	3.92
4.50—7.50	539,978	7.7	6.90		518,994	6.94
8.65—11.00	223,959	8.1	8.87		221,250	8.88
11.00--33.00	322,490	9.1	31.84		54,930	32.25
35.00 and over	52,015	9.3	36.42		14,515	35
	3,763,228	5.7	$	6.74	3,413,948	$	4.47

Stock options valuation assumptions

The fair value of the employee stock options were estimated on the grant dates using a Black-Scholes option-pricing model with the following weighted average assumptions:



	Fiscal years ended July 31,
	2013	2012	2011
Expected life (in years)	5.1 - 6.1	5.3 - 6.3	6.03
Risk-free interest rate	0.6% - 1.2%	1.2% - 1.5%	1.9%
Expected volatility	45.1% - 48.7%	44.1% - 46.4%	46.1%
Expected dividend yield	—%	—%	—%

Common Stock Reserved for Issuance

As of July 31, 2013 and 2012, the Company had reserved shares of common stock, on an as-if-converted basis, for future issuance as follows:



	July 31, 2013	July 31, 2012
Exercise of stock options to purchase common stock	3,763,228	6,486,641
Vesting of restricted stock units	4,027,601	3,992,177
Issuances of shares available under stock plans	9,194,058	7,655,332
Total common stock reserved for issuance	16,984,887	18,134,150

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Income Taxes (Tables)

12 Months Ended

Jul. 31, 2013

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, 2013, 2012 and 2011 is as follows:



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
Domestic	$	12,814	$	17,033	$	1,077
International	4,398		6,146		7,219
Income before provision for income taxes	$	17,212	$	23,179	$	8,296

Schedule of Components of Income Tax Expense

The provision for income taxes consists of the following:



	Fiscal years ended July 31,
	2013			2012			2011
	(in thousands)
Current:
U.S. federal	$	1,296		$	—		$	192
State	999			544			259
Foreign	3,479			1,522			404
Total current	5,774			2,066			855
Deferred:
U.S. federal	(3,416		)	5,292			(24,322		)
State	5			(266		)	(3,326		)
Foreign	(534		)	887			(469		)
Total deferred	(3,945		)	5,913			(28,117		)
Total provision for (benefit from) income taxes	$	1,829		$	7,979		$	(27,262	)

Effective Income Tax Rate Reconciliation

The total income tax expense differs from the amounts computed by applying the statutory federal income tax rate of 35% during the years ended July 31, 2013, 2012 and 2011 as follows:



	Fiscal years ended July 31,
	2013			2012			2011
	(in thousands)
Computed tax expense	$	6,024		$	8,113		$	2,906
Nondeductible items and other	779			877			475
State taxes, net of federal benefit	(1,336		)	(841		)	477
Foreign income taxed at different rates	1,405			258			(2,593		)
Tax credits	(7,199		)	(1,356		)	(1,330		)
Change in valuation allowance	2,156			928			(27,197		)
Total provision for (benefit from) income taxes	$	1,829		$	7,979		$	(27,262	)

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:



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
Accruals and reserves	$	3,647	$	2,273	$	8,307
Stock-based compensation	11,672		5,645		—
Deferred revenues	510		5,088		2,373
Property & equipment	—		153		—
State taxes	—		165		121
Net operating loss carryforwards	2,244		2,957		12,768
Tax credits	14,233		9,192		6,908
Total deferred tax assets	32,306		25,473		30,477
Less valuation allowance	4,874		2,718		1,790
Net deferred tax assets	27,432		22,755		28,687
Less deferred tax liabilities:
Property & equipment	440		—		570
Intangible assets	2,268		—		—
Foreign deferred revenue	736		550		—
Total net deferred tax assets	$	23,988	$	22,205	$	28,117

Net operating loss carryforwards

The Company had net operating loss carryforwards of the following:



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
U.S. federal	$	133,660	$	46,110	$	29,020
California	80,561		40,021		34,655
Other states	19,831		7,953		3,996
Total net operating loss carryforwards	$	234,052	$	94,084	$	67,671

R&D credits carryforwards

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



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
U.S. federal	$	12,973	$	6,565	$	5,648
California	11,980		7,558		4,271
Total R&D credit carryforwards	$	24,953	$	14,123	$	9,919

Summary of activity related to unrecognized tax benefits

The following table summarizes the activity related to unrecognized tax benefits:



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
Unrecognized benefit - beginning of period	$	3,937	$	2,419	$	335
Gross increases - prior period tax positions	370		478		1,436
Gross increases - current period tax positions	2,420		1,040		648
Unrecognized benefit - end of period	$	6,727	$	3,937	$	2,419

Segment Information (Tables)

12 Months Ended

Jul. 31, 2013

Segment Reporting [Abstract]

Revenues by country

The following table sets forth revenues by country based on the billing address of the customer:



	Fiscal years ended July 31,
	2013		2012		2011
	(in thousands)
United States	$	172,793	$	127,473	$	89,714
Canada	42,632		35,690		24,632
Australia	15,316		19,619		17,388
United Kingdom	20,660		16,223		17,362
Other	49,248		33,056		23,376
Total revenues	$	300,649	$	232,061	$	172,472

Property and equipment, net by geographic region

The following table sets forth the Company’s property and equipment, net by geographic region:



	July 31, 2013		July 31, 2012
	(in thousands)
North America	$	11,353	$	11,522
Europe	1,276		388
Asia Pacific	285		14
Total	$	12,914	$	11,924

Acquisition Acquisition (Tables)

12 Months Ended

Jul. 31, 2013

Business Combination [Abstract]

Schedule of Purchase Price Allocation

The aggregate cost of the acquisition, net of acquired cash, was allocated as follows:



	Total Purchase Price Allocation			Estimated Useful Lives
	(in thousands)			(in years)
Assets acquired, net	$	590		n/a
Developed technology	7,200			5.0
Deferred tax liability	(2,094		)	n/a
Goodwill	9,048			n/a
Total purchase price	$	14,744

The Company and Summary of Significant Accounting Policies and Estimates (Details)	12 Months Ended
	Jul. 31, 2013
Computer hardware [Member]
Estimated useful lives of property and equipment
Estimated useful lives of property and equipment (in years)	3 years
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

The Company and Summary of Significant Accounting Policies and Estimates (Details Textual)			12 Months Ended
	Apr. 24, 2012 USD ($) $ / shares shares	Jan. 30, 2012 USD ($) $ / shares $ / Unit shares	Jul. 31, 2013 USD ($) customer	Jul. 31, 2012 USD ($) customer shares	Jul. 31, 2011 USD ($) customer	Apr. 30, 2012 shares
Finite-Lived Intangible Assets [Line Items]
Number of Customers Concentration Of Credit Risk \| customer			0	0	0
Public Offerings [Abstract]
Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission			$ 0	$ 143,386,000	$ 0
Offering expenses related to public offering				$ 3,502,000
Outstanding warrants (in shares) \| shares						21,640
Concentration of Credit Risk [Abstract]
Number of Customers Concentration of Credit Risk Receivables \| customer			1	0
Accounts Receivable and Allowance for Doubtful Accounts [Abstract]
Allowance for Doubtful Accounts Receivable			$ 0	$ 0
Provision for doubtful accounts			0	0	0
Revenue Recognition [Abstract]
Adjustment for license revenues			3,200,000	900,000	400,000
Adjustment for service revenues			$ 1,700,000	900,000	300,000
Deferred Revenues [Abstract]
Period in which deferred revenues expected to be recognized (in years)			1 year
Advertising Costs [Abstract]
Advertising costs			$ 100,000	$ 100,000	$ 300,000
Restricted stock units RSUs [Member]
Stock-based Compensation [Abstract]
Period of RSUs time based vesting (in years)			4 years
Period which satisfies performance based condition required for vesting of RSUs after our IPO (in days)			180 days
Period of expiration for share based payment awards (in years)			10 years
Minimum [Member]
Concentration of Credit Risk [Abstract]
Percentage of revenue			10.00%	10.00%	10.00%
Percentage of accounts receivable			10.00%
Revenue Recognition [Abstract]
Period for revenue recognition not considered fixed and determinable fees (in days)			90 days
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
Licensing Agreements [Member] \| Minimum [Member]
Revenue Recognition [Abstract]
Period of standard license agreement term (in years)			3 years
Licensing Agreements [Member] \| Maximum [Member]
Revenue Recognition [Abstract]
Period of standard license agreement term (in years)			7 years
Follow-on Public Offerings [Member]
Public Offerings [Abstract]
Issuance of common stock under public offering (in shares) \| shares	750,000
Price of common stock under public offerings (in dollars per share) \| $ / shares	$ 28.25
Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission	$ 20,400,000
Offering expenses related to public offering	1,000,000
Capitalized costs related public offering expense	$ 700,000
Stock issued during period secondary offering shares (in shares) \| shares	9,200,000
Stock sold during period secondary offerings by selling stockholders' shares (in shares) \| shares	8,450,000
IPO [Member]
Public Offerings [Abstract]
Issuance of common stock under public offering (in shares) \| shares		10,177,500
Issuance of common stock under initial public offering to underwriters (in shares) \| shares		1,327,500
Price of common stock under public offerings (in dollars per share) \| $ / shares		$ 13.00
Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission		$ 123,000,000
Offering expenses related to public offering		3,500,000
Capitalized costs related public offering expense		$ 2,800,000
Conversion of convertible preferred stock (in shares) \| shares		25,357,721
Preferred Stock [Member] \| IPO [Member]
Public Offerings [Abstract]
Outstanding warrants (in shares) \| shares		69,529
Warrant purchase price (in dollars per share) \| $ / Unit		5.03
Common Stock [Member]
Public Offerings [Abstract]
Issuance of common stock under public offering (in shares) \| shares				10,927,500
Common Stock [Member] \| IPO [Member]
Public Offerings [Abstract]
Outstanding warrants (in shares) \| shares		69,529
Warrant purchase price (in dollars per share) \| $ / Unit		5.03

Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 183,764	$ 108,833
Unrealized Gains	59	0
Unrealized Losses	(35)	0
Estimated Fair Value	183,788	108,833
U.S. agency securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	37,087
Unrealized Gains	21
Unrealized Losses	(4)
Estimated Fair Value	37,104
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	4,522
Unrealized Gains	0
Unrealized Losses	(1)
Estimated Fair Value	4,521
Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	35,777
Unrealized Gains	11
Unrealized Losses	(1)
Estimated Fair Value	35,787
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	63,281
Unrealized Gains	23
Unrealized Losses	(14)
Estimated Fair Value	63,290
Foreign government bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	776
Unrealized Gains	0
Unrealized Losses	(1)
Estimated Fair Value	775
Money market funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	33,216	105,107
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	33,216	105,107
Municipal debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	9,105
Unrealized Gains	4
Unrealized Losses	(14)
Estimated Fair Value	$ 9,095
Certificates of deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost		3,726
Unrealized Gains		0
Unrealized Losses		0
Estimated Fair Value		$ 3,726

Fair Value of Financial Instruments (Details 2) $ in Thousands	Jul. 31, 2013 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	$ 35,650
Less than 12, Months, Gross Unrealized Losses	(35)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	35,650
Total, Gross Unrealized Losses	(35)
U.S. government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	6,697
Less than 12, Months, Gross Unrealized Losses	(4)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	6,697
Total, Gross Unrealized Losses	(4)
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	768
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	768
Total, Gross Unrealized Losses	(1)
Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	1,597
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	1,597
Total, Gross Unrealized Losses	(1)
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	18,902
Less than 12, Months, Gross Unrealized Losses	(14)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	18,902
Total, Gross Unrealized Losses	(14)
Foreign government bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	775
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	775
Total, Gross Unrealized Losses	(1)
Municipal debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	6,911
Less than 12, Months, Gross Unrealized Losses	(14)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	6,911
Total, Gross Unrealized Losses	$ (14)

Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2014	$ 132,748
Expected maturities for the year ending July 31, 2015	51,040
Expected maturities, Thereafter	0
Estimated Fair Value	183,788	$ 108,833
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, 2014	9,097
Expected maturities for the year ending July 31, 2015	28,007
Expected maturities, Thereafter	0
Estimated Fair Value	37,104
Asset-backed securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2014	2,421
Expected maturities for the year ending July 31, 2015	2,100
Expected maturities, Thereafter	0
Estimated Fair Value	4,521
Commercial paper [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2014	35,787
Expected maturities for the year ending July 31, 2015	0
Expected maturities, Thereafter	0
Estimated Fair Value	35,787
Corporate bonds [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2014	49,575
Expected maturities for the year ending July 31, 2015	13,715
Expected maturities, Thereafter	0
Estimated Fair Value	63,290
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, 2014	775
Expected maturities for the year ending July 31, 2015	0
Expected maturities, Thereafter	0
Estimated Fair Value	775
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, 2014	33,216
Expected maturities for the year ending July 31, 2015	0
Expected maturities, Thereafter	0
Estimated Fair Value	33,216	$ 105,107
Municipal debt securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2014	1,877
Expected maturities for the year ending July 31, 2015	7,218
Expected maturities, Thereafter	0
Estimated Fair Value	$ 9,095

Fair Value of Financial Instruments (Details 4) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 183,788	$ 108,833
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	33,216	108,833
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	150,572	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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	9,097
Long-term investments	28,007
Total assets	37,104
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
Long-term investments	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	9,097
Long-term investments	28,007
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
Long-term investments	0
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	2,421
Long-term investments	2,100
Total assets	4,521
Asset-backed 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
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]
Short-term investments	2,421
Long-term investments	2,100
Asset-backed 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
Long-term investments	0
Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	20,597
Short-term investments	15,190
Total assets	35,787
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
Short-term investments	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	20,597
Short-term investments	15,190
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
Short-term investments	0
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	2,003
Short-term investments	47,572
Long-term investments	13,715
Total assets	63,290
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
Long-term investments	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	2,003
Short-term investments	47,572
Long-term investments	13,715
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
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	33,216	105,107
Total assets	33,216	105,107
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	33,216	105,107
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
Certificates of deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		3,726
Total assets		3,726
Certificates of deposit [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		3,726
Certificates of deposit [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
Certificates of deposit [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
Foreign government bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	775
Total assets	775
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
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	775
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
Municipal debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	1,877
Long-term investments	7,218
Total assets	9,095
Municipal debt 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
Long-term investments	0
Municipal debt securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	1,877
Long-term investments	7,218
Municipal debt 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
Long-term investments	$ 0

Fair Value Disclosures (Details Textual)	Jul. 31, 2013 investments
Fair Value Disclosures [Abstract]
Investments in an unrealized loss positions (in investments)	27

Balance Sheet Components (Details 1) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012
Property and equipment
Computer hardware	$ 8,820	$ 8,125
Software	4,460	3,599
Furniture and fixtures	2,666	1,854
Leasehold improvements	6,536	5,600
Total property and equipment	22,482	19,178
Less accumulated depreciation	(9,568)	(7,254)
Property and equipment, net	$ 12,914	$ 11,924

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Balance Sheet Components (Details 2) $ in Thousands	12 Months Ended
Balance Sheet Components (Details 2) $ in Thousands	Jul. 31, 2013 USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning of Period	$ 0
Acquired goodwill	9,048
Goodwill, End of Period	$ 9,048

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Balance Sheet Components (Details 3) $ in Thousands	Jul. 31, 2013 USD ($)
Finite-Lived Intangible Assets [Line Items]
Total	$ 6,879
Acquired Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	7,200
Accumulated amortization	(321)
Total	$ 6,879

Balance Sheet Components (Details 4) $ in Thousands	Jul. 31, 2013 USD ($)
Balance Sheet Related Disclosures [Abstract]
2014	$ 1,440
2015	1,440
2016	1,440
2017	1,440
2018	1,119
Thereafter	0
Total	$ 6,879

Balance Sheet Components (Details 5) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012
Accrued employee compensation
Accrued bonuses	$ 13,072	$ 12,718
Accrued commission	2,043	4,068
Accrued vacation	7,335	5,684
Payroll accruals	3,852	4,032
Total	$ 26,302	$ 26,502

- Definition

Carrying value as of the balance sheet date of obligations incurred and payable for incentive compensation awarded to employees and directors or earned by them based on the terms of one or more relevant arrangements. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for sales commissions. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of obligations incurred and payable for unused vacation time owed to employees based on the entity's vacation benefit given to its employees. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

Balance Sheet Components (Details Textual) - USD ($)	12 Months Ended
Balance Sheet Components (Details Textual) - USD ($)	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Balance Sheet Components (Additional Textual) [Abstract]
Property and equipment pledged as collateral	$ 0	$ 0
Depreciation expense	4,500,000	2,600,000	$ 1,500,000
Amortization of intangible assets	$ 300,000	$ 300,000	$ 700,000

Net Income per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Jul. 31, 2013

Jul. 31, 2012

Jul. 31, 2011

Numerator:

Net income

$ 15,383

$ 15,200

$ 35,558

Non-cumulative dividends to preferred stockholders

(1,574)

(3,291)

Undistributed earnings allocated to preferred stockholders

(3,544)

(20,568)

Net income, basic

15,383

10,082

11,699

Adjustments to net income for dilutive options and restricted stock options

467

1,747

Net income, diluted

$ 15,383

$ 10,549

$ 13,446

Net income per share: (in dollars per share)

Basic

$ 0.27

$ 0.29

$ 0.83

Diluted

$ 0.25

$ 0.76

Weighted average shares used in computing net income per share:

Basic

56,331,018

34,774,983

14,064,055

Weighted average effect of diluted stock options

3,428,972

4,380,549

2,682,215

Weighted average effect of dilutive restricted stock units

2,183,097

2,323,787

1,010,622

Weighted average effect of dilutive stock warrants

^[1]

29,866

6,967

Diluted

61,943,087

41,509,185

17,763,859

[1]	Series C convertible preferred stock warrants were automatically converted to equivalent common stock warrants upon the Company’s IPO on January 24, 2012 and converted or cancelled as of April 30, 2012.

Net Income per Share (Details 1) - shares	12 Months Ended
Net Income per Share (Details 1) - shares	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
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)	320,325	329,671	1,975,982
Restricted stock units [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding shares of common stock equivalents (in shares)	57,829	86,273	163,031

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Commitments and Contingencies (Details)
$ in Thousands

Jul. 31, 2013

USD ($)

Lease Obligations

$ 4,967

4,778

4,812

4,693

4,766

4,828

28,844

Royalty Obligations

2014

429

^[1]

2015

414

^[1]

2016

105

^[1]

^[1]

^[1]

^[1]

948

^[1]

Purchase Commitments

2014

296

^[2]

2015

183

^[2]

^[2]

^[2]

^[2]

^[2]

479

^[2]

Total

5,692

5,375

4,917

4,693

4,766

4,828

$ 30,271

[1]	Royalty obligations primarily represent our obligations under our non-cancelable agreements related to software used in certain revenue-generating agreements.
[2]	Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent non-cancelable commitments for which a penalty would be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement.

Commitments and Contingencies (Details Textual) zł in Millions			12 Months Ended
	Dec. 05, 2011 USD ($) ft²	Oct. 13, 2011 USD ($)	Jul. 31, 2013 USD ($) letters	Jul. 31, 2012 USD ($)	Jul. 31, 2011 USD ($)	Jul. 31, 2012 PLN (zł) letters	Jul. 31, 2012 USD ($) letters
Commitments and contingencies (Textual) [Abstract]
Duration of lease for a facility to serve as its corporate headquarters (in years)	7 years
Rentable area of current corporate headquarters (in square feet) \| ft²	97,674
Line of Credit Facility Maximum Borrowing Capacity			$ 3,100,000
Lease expense for all worldwide facilities and equipment			$ 5,300,000	$ 4,000,000	$ 2,300,000
Sublease Income				$ 1,200,000	1,200,000
Number of Unsecured Credit Facilities Outstanding (in letters) \| letters			0			3	3
Unsecured letter of credit \| zł						zł 10.0
Payment in connection with settlement		$ 10,000,000			$ 10,000,000
Additional payment in case of successful appeal			$ 20,000,000
Line of Credit Facility, Amount Outstanding			$ 0				$ 0
Letter of Credit [Member]
Commitments and contingencies (Textual) [Abstract]
Line of Credit Facility Maximum Borrowing Capacity	$ 1,200,000

Stockholders' Equity and Stock-based Compensation (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Stock-based compensation expense
Stock-based compensation	$ 38,399	$ 18,258	$ 6,680
Tax benefit from stock-based compensation	12,933	7,137	2,646
Total stock-based compensation expense, net of tax effect	25,466	11,121	4,034
Cost of maintenance revenues [Member]
Stock-based compensation expense
Stock-based compensation	1,217	379	120
Cost of services revenues [Member]
Stock-based compensation expense
Stock-based compensation	12,493	3,741	1,264
Research and development [Member]
Stock-based compensation expense
Stock-based compensation	9,131	3,759	1,372
Sales and marketing [Member]
Stock-based compensation expense
Stock-based compensation	5,970	2,936	903
General and administrative [Member]
Stock-based compensation expense
Stock-based compensation	$ 9,588	$ 7,443	$ 3,021

Stockholders' Equity and Stock-based Compensation (Details 2) $ in Thousands	12 Months Ended
	Jul. 31, 2013 USD ($)
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized Expense	$ 43,834
Restricted stock units RSUs [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized Expense	$ 41,135
Average Expected Recognition Period (in years)	1 year 3 months 4 days
Stock options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized Expense	$ 2,699
Average Expected Recognition Period (in years)	11 months 27 days

Stockholders' Equity and Stock-based Compensation (Details 3) - Restricted stock units RSUs [Member] - $ / shares	12 Months Ended
	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Number of RSUs Outstanding (in shares)
Balance at beginning of period	3,992,177
Granted	2,024,221
Released	(1,623,182)
Canceled	(365,615)
Balance at end of period	4,027,601	3,992,177
Weighted Average Grant Date Fair Value (in dollars per share)
Balance at beginning of period	$ 8.00
Granted	33.68	$ 13.65	$ 4.70
Released	9.88
Canceled	17.72
Balance at end of period	$ 19.27	$ 8.00

Stockholders' Equity and Stock-based Compensation (Details 4) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Jul. 31, 2013

Jul. 31, 2012

Number of Stock Options Outstanding (in shares)

Balance at beginning of period

6,486,641

Granted

377,412

Exercised

(2,905,296)

Canceled

(195,529)

Balance at end of period

3,763,228

6,486,641

Exercisable as of July 31, 2013

3,413,948

Weighted Average Exercise Price (in dollars per share)

Balance at beginning of period

$ 3.74

Granted

32.36

Exercised

3.12

Canceled

10.55

Balance at end of period

6.74

$ 3.74

Exercisable as of July 31, 2013

$ 4.47

Weighted Average Remaining Contractual Life (in years)

Weighted average remaining contractual life

5 years 8 months 12 days

6 years 1 month 13 days

Vested and expected to vest as of July 31, 2013

5 years 7 months 28 days

Exercisable as of July 31, 2013

5 years 4 months 14 days

Aggregate Intrinsic Value

Aggregate Intrinsic Value

^[1]

$ 139,315

$ 142,321

Vested and expected to vest as of July 31, 2013

^[1]

138,163

Exercisable as of July 31, 2013

^[1]

$ 134,139

[1]	Aggregate intrinsic value represents the difference between the exercise price of the option and the Company’s closing stock price of $43.76 and $25.66 on July 31, 2013 and July 31, 2012, respectively.

Stockholders' Equity and Stock-based Compensation (Details 5) - $ / shares	12 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	3,763,228	6,486,641
Weighted average remaining contractual life	5 years 8 months 12 days	6 years 1 month 13 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 6.74	$ 3.74
Options Exercisable, Number of Options Exercisable (in shares)	3,413,948
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 4.47
$0.16—1.00 [Member]
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	446,350
Weighted average remaining contractual life	2 years 4 months 17 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 0.54
Options Exercisable, Number of Options Exercisable (in shares)	446,350
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 0.54
1.25—2.56 [Member]
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	107,600
Weighted average remaining contractual life	3 years 1 month 10 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 2.02
Options Exercisable, Number of Options Exercisable (in shares)	107,600
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 2.02
2.74 [Member]
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	752,484
Weighted average remaining contractual life	4 years
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 2.74
Options Exercisable, Number of Options Exercisable (in shares)	752,484
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 2.74
3.50 [Member]
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	203,068
Weighted average remaining contractual life	4 years 7 months 28 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 3.50
Options Exercisable, Number of Options Exercisable (in shares)	203,068
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 3.50
3.73 [Member]
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	604,396
Weighted average remaining contractual life	5 years 7 months 17 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 3.73
Options Exercisable, Number of Options Exercisable (in shares)	595,269
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 3.73
3.92 [Member]
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	510,888
Weighted average remaining contractual life	6 years 4 months 21 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 3.92
Options Exercisable, Number of Options Exercisable (in shares)	499,488
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 3.92
4.50 - 7.50 [Member]
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	539,978
Weighted average remaining contractual life	7 years 8 months 16 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 6.90
Options Exercisable, Number of Options Exercisable (in shares)	518,994
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 6.94
8.65 - 11.00 [Member]
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	223,959
Weighted average remaining contractual life	8 years 1 month 24 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 8.87
Options Exercisable, Number of Options Exercisable (in shares)	221,250
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 8.88
11.00-33.00 [Member]
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	322,490
Weighted average remaining contractual life	9 years 1 month 17 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 31.84
Options Exercisable, Number of Options Exercisable (in shares)	54,930
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 32.25
35.00 and over [Member]
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	52,015
Weighted average remaining contractual life	9 years 3 months 29 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 36.42
Options Exercisable, Number of Options Exercisable (in shares)	14,515
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 35

Stockholders' Equity and Stock-based Compensation (Details 6)	12 Months Ended
	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Summary of assumptions for fair value of employee stock option estimates
Risk-free interest rate, minimum (as a percent)			1.90%
Risk-free interest rate, maximum (as a percent)			1.90%
Expected volatility, minimum (as a percent)			46.10%
Expected volatility, maximum (as a percent)			46.10%
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%
Minimum [Member]
Summary of assumptions for fair value of employee stock option estimates
Expected life (in years)	5 years 1 month 13 days	5 years 3 months 18 days	6 years 11 days
Risk-free interest rate, minimum (as a percent)	0.60%	1.20%
Expected volatility, minimum (as a percent)	45.10%	44.10%
Maximum [Member]
Summary of assumptions for fair value of employee stock option estimates
Expected life (in years)	6 years 22 days	6 years 3 months 18 days	6 years 11 days
Risk-free interest rate, maximum (as a percent)	1.20%	1.50%
Expected volatility, maximum (as a percent)	48.70%	46.40%

Stockholders' Equity and Stock-based Compensation (Details 7) - shares	Jul. 31, 2013	Jul. 31, 2012
Common Stock Reserved for Issuance (in shares)
Exercise of stock options to purchase common stock	3,763,228	6,486,641
Issuances of shares available under stock plans	9,194,058	7,655,332
Total common stock reserved for issuance	16,984,887	18,134,150
Preferred stock, shares outstanding	0	0
Stock options [Member]
Common Stock Reserved for Issuance (in shares)
Exercise of stock options to purchase common stock	3,763,228	6,486,641
Restricted stock units RSUs [Member]
Common Stock Reserved for Issuance (in shares)
Vesting of restricted stock units	4,027,601	3,992,177

Stockholders' Equity and Stock-based Compensation (Details Textual)			1 Months Ended		12 Months Ended
	Jan. 30, 2012 shares	Mar. 09, 2011 Awards shares	Jan. 31, 2012 shares	Jul. 31, 2011 shares	Jul. 31, 2013 USD ($) $ / shares shares	Jul. 31, 2012 USD ($) $ / shares shares	Jul. 31, 2011 USD ($) $ / shares	Sep. 14, 2011 shares
Class of Stock [Line Items]
Stock-based compensation expense related to change in estimated forfeiture rate \| $						$ 900,000
Number of awards granted (in awards) \| Awards		3
Performance-based RSUs granted awards (in shares)		878,800
RSUs covering common stock subject to satisfaction of an initial public offering of the Company's equity securities (in shares)			502,200
RSUs covering common stock subject to full and final dismissal or final adjudication of certain specified litigation (in shares)				251,100
Number of RSUs issued subject to performance vesting based on satisfaction of a Pre-established revenue target (in shares)						125,500
Share price (in dollars per share) \| $ / shares					$ 43.76	$ 25.66
Exercises in period, Total intrinsic value \| $					$ 86,000,000	$ 31,200,000	$ 2,600,000
Weighted average grant date fair value of options granted (in dollars per share) \| $ / shares					$ 14.06	$ 4.51	$ 3.46
Fair value assumption dividend amount \| $					$ 0
Stock issued during period, Shares, Conversion of convertible securities (in shares)	25,357,721
Preferred stock, Shares authorized (in shares)					25,000,000	25,000,000
Preferred stock, par value (in dollars per share) \| $ / shares					$ 0.0001	$ 0.1000
Preferred stock, shares issued (in shares)					0	0
Common stock, shares authorized (in shares)					500,000,000	500,000,000
Common Stock, Shares, Issued (in shares)					57,909,277	53,956,608
Common stock, par value (in dollars per share) \| $ / shares					$ 0.0001	$ 0.0001
Restricted stock units RSUs [Member]
Class of Stock [Line Items]
Incremental cost of modification of award \| $					$ 1,000,000
Reversal of previously recognized expense for unvested awards \| $					1,000,000
Share Based Compensation Expense, Performance Based Awards \| $					$ 1,700,000
Share-based compensation related to successful IPO \| $						$ 1,200,000
Estimated grant date fair value of RSUs options (in dollars per share) \| $ / shares					$ 33.68	$ 13.65	$ 4.70
Equity instruments other than options released fair value \| $					$ 56,200,000	$ 41,200,000	$ 0
Stock Plan 2006 [Member]
Class of Stock [Line Items]
Shares reserved for issuance under stock compensation plan (in shares)					13,920,757
Stock Plan 2009 [Member]
Class of Stock [Line Items]
Shares reserved for issuance under stock compensation plan (in shares)					31,000
Stock Plan 2010 [Member]
Class of Stock [Line Items]
Shares reserved for issuance under stock compensation plan (in shares)					3,908,028
Stock Plan 2011 [Member]
Class of Stock [Line Items]
Shares reserved for issuance under stock compensation plan (in shares)					11,760,300			7,500,000
Maximum increase in percentage of outstanding number of shares of the Company's common stock (as a percent)					5.00%
Period for award grant (in years)					10 years
Awards granted prior to the IPO (in shares)					0

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Company's income (loss) before provision for income taxes
Income before provision for income taxes	$ 17,212	$ 23,179	$ 8,296
Domestic [Member]
Company's income (loss) before provision for income taxes
Income before provision for income taxes	12,814	17,033	1,077
International [Member]
Company's income (loss) before provision for income taxes
Income before provision for income taxes	$ 4,398	$ 6,146	$ 7,219

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Current:
U.S. federal	$ 1,296	$ 0	$ 192
State	999	544	259
Foreign	3,479	1,522	404
Total current	5,774	2,066	855
Deferred:
U.S. federal	(3,416)	5,292	(24,322)
State	5	(266)	(3,326)
Foreign	(534)	887	(469)
Total deferred	(3,945)	5,913	(28,117)
Total provision for (benefit from) income taxes	$ 1,829	$ 7,979	$ (27,262)

Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Effective Income Tax Reconciliation
Computed tax expense	$ 6,024	$ 8,113	$ 2,906
Nondeductible items and other	779	877	475
State taxes, net of federal benefit	(1,336)	(841)	477
Foreign income taxed at different rates	1,405	258	(2,593)
Tax credits	(7,199)	(1,356)	(1,330)
Change in valuation allowance	2,156	928	(27,197)
Total provision for (benefit from) income taxes	$ 1,829	$ 7,979	$ (27,262)

Income Taxes (Details 3) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Tax effects of temporary differences
Accruals and reserves	$ 3,647	$ 2,273	$ 8,307
Stock-based compensation	11,672	5,645	0
Deferred revenues	510	5,088	2,373
Property & equipment	0	153	0
State taxes	0	165	121
Net operating loss carryforwards	2,244	2,957	12,768
Tax credits	14,233	9,192	6,908
Total deferred tax assets	32,306	25,473	30,477
Less valuation allowance	4,874	2,718	1,790
Net deferred tax assets	27,432	22,755	28,687
Property & equipment	440	0	570
Intangible assets	2,268	0	0
Foreign deferred revenue	736	550	0
Total net deferred tax assets	$ 23,988	$ 22,205	$ 28,117

Income Taxes (Details 4) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Net operating loss carryforwards
Operating Loss Carryforwards	$ 234,052	$ 94,084	$ 67,671
U.S. federal [Member]
Net operating loss carryforwards
Operating Loss Carryforwards	133,660	46,110	29,020
California [Member]
Net operating loss carryforwards
Operating Loss Carryforwards	80,561	40,021	34,655
Other states [Member]
Net operating loss carryforwards
Operating Loss Carryforwards	$ 19,831	$ 7,953	$ 3,996

Income Taxes (Details 5) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 5) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Operating Loss Carryforwards [Line Items]
Research and Development Credits Carryforwards	$ 24,953	$ 14,123	$ 9,919
U.S. federal [Member]
Operating Loss Carryforwards [Line Items]
Research and Development Credits Carryforwards	12,973	6,565	5,648
California [Member]
Operating Loss Carryforwards [Line Items]
Research and Development Credits Carryforwards	$ 11,980	$ 7,558	$ 4,271

Income Taxes (Details 6) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 6) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Summarizes the activity related to unrecognized tax benefits
Unrecognized benefit - beginning of period	$ 3,937	$ 2,419	$ 335
Gross increases - prior period tax positions	370	478	1,436
Gross increases - current period tax positions	2,420	1,040	648
Unrecognized benefit - end of period	$ 6,727	$ 3,937	$ 2,419

Income Taxes (Details Textual) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Thousands	Jul. 31, 2011	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Income Taxes (Additional Textual) [Abstract]
Percentage of statutory federal income tax rate		35.00%	35.00%	35.00%
Benefit from reduction in valuation allowance	$ 27,200
Deferred Tax Assets, Valuation Allowance	$ 1,790	$ 4,874	$ 2,718	$ 1,790
Undistributed earnings from certain foreign subsidiaries		12,400
Unrecognized deferred tax liability		1,100
Increase in long term liability associated with unrecognized tax benefits		2,400
Unrecognized tax benefits		$ 3,300
U.S. federal [Member]
Income Taxes (Additional Textual) [Abstract]
R&D Credits expiration dates		2023
Unrealized excess tax benefits resulting from exercises of stock options		$ 131,800
U.S. federal [Member] \| Maximum [Member]
Income Taxes (Additional Textual) [Abstract]
Operating loss carryforwards, Expiration dates		2028
California [Member]
Income Taxes (Additional Textual) [Abstract]
Unrealized excess tax benefits resulting from exercises of stock options		$ 56,600
California [Member] \| Minimum [Member]
Income Taxes (Additional Textual) [Abstract]
Operating loss carryforwards, Expiration dates		2016

Employee 401(k) Plan (Details Textual) - USD ($)	12 Months Ended
Employee 401(k) Plan (Details Textual) - USD ($)	Jul. 31, 2013	Jul. 31, 2012
Employee 401(k) Plan (Textual) [Abstract]
Maximum Annual Contribution Per Employee, Percent	25.00%
Maximum Annual Contribtion Per Employee, Amount	$ 2,000	$ 2,000

Segment Information (Details) - USD ($) $ in Thousands	12 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2011
Revenues:
Total revenues	$ 300,649	$ 232,061	$ 172,472
United States [Member]
Revenues:
Total revenues	172,793	127,473	89,714
Canada [Member]
Revenues:
Total revenues	42,632	35,690	24,632
Australia [Member]
Revenues:
Total revenues	15,316	19,619	17,388
United Kingdom [Member]
Revenues:
Total revenues	20,660	16,223	17,362
Other [Member]
Revenues:
Total revenues	$ 49,248	$ 33,056	$ 23,376

Segment Information (Details 1) - USD ($) $ in Thousands	Jul. 31, 2013	Jul. 31, 2012
Property and equipment, net by geographic region
Property and equipment, net	$ 12,914	$ 11,924
North America [Member]
Property and equipment, net by geographic region
Property and equipment, net	11,353	11,522
Europe [Member]
Property and equipment, net by geographic region
Property and equipment, net	1,276	388
Asia Pacific [Member]
Property and equipment, net by geographic region
Property and equipment, net	$ 285	$ 14

Acquisition (Details) - Milbrook, Inc [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jul. 31, 2013	Jul. 31, 2013	May 10, 2013
Business Acquisition [Line Items]
Cash paid			$ 14,744
Equity interests issued and issuable			3,700
Transaction Expenses	$ 700
Purchase Price Allocation [Abstract]
Assets acquired, net			590
Developed technology			7,200
Deferred tax liability			(2,094)
Goodwill			9,048
Total purchase price			$ 14,744
Developed technology [Member]
Purchase Price Allocation [Abstract]
Estimated Useful Lives		5 years

Label	Element	Value
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice	$ 6.56
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber	3,714,254
Retained Earnings [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ (7,788,000)
Convertible Preferred Stock [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	0
Additional Paid-in Capital [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	237,769,000
Common Stock [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	6,000
Accumulated Other Comprehensive Income (Loss) [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ (1,558,000)