View Filing Data

Accumulated other comprehensive loss

^[1]

629,076

215,151

(1,367)

(1,574)

Retained earnings

^[1]

22,970

8,249

Total stockholders’ equity

^[1]

650,686

221,832

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$ 757,227

$ 305,673

[1]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 2014	Jul. 31, 2013
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common Stock, Shares, Issued (in shares)	69,082,261	57,909,277
Common stock, shares outstanding (in shares)	69,082,261	57,909,277

Consolidated Statements of Income - USD ($)
$ in Thousands

12 Months Ended

Jul. 31, 2014

Jul. 31, 2013

Jul. 31, 2012

Revenues:

License

$ 151,921

$ 123,560

$ 97,136

Maintenance

41,888

37,561

29,538

Services

156,437

139,528

105,387

Total revenues

350,246

300,649

232,061

Cost of revenues:

License

^[1]

4,442

920

762

Maintenance

^[1]

8,118

7,216

5,193

Services

^[1]

136,387

117,515

84,050

Total cost of revenues

^[1]

148,947

125,651

90,005

Gross profit:

License

^[1]

147,479

122,640

96,374

Maintenance

^[1]

33,770

30,345

24,345

Services

^[1]

20,050

22,013

21,337

Total gross profit

^[1]

201,299

174,998

142,056

Operating expenses:

^[1]

76,178

62,991

49,056

^[1]

71,295

50,948

36,781

Other income (expenses), net

^[1]

35,404

31,320

27,285

Total operating expenses

^[1]

182,877

145,259

113,122

Income from operations

18,422

29,739

28,934

Interest income, net

1,350

498

308

174

(114)

(726)

^[1],[2]

19,946

30,123

28,516

^[1],[3],[4]

5,225

5,465

9,852

Diluted (in USD per share)

^[1]

$ 14,721

$ 24,658

$ 18,664

Earnings per share:

Basic (in USD per share)

^[1],[5]

$ 0.22

$ 0.44

$ 0.36

^[1],[5]

$ 0.21

$ 0.40

$ 0.32

Shares used in computing earnings per share:

Basic (in shares)

^[1],[6]

65,748,896

56,331,018

34,774,983

Diluted (in shares)

^[1],[6]

69,112,733

61,569,195

41,759,338

[1]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[2]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[3]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[4]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[5]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[6]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

Consolidated Statements of Comprehensive Income Statement - USD ($)
$ in Thousands

12 Months Ended

Jul. 31, 2014

Jul. 31, 2013

Jul. 31, 2012

Statement of Comprehensive Income [Abstract]

Foreign currency translation adjustments

^[1]

$ 14,721

$ 24,658

$ 18,664

Other comprehensive income (loss):

288

(1,102)

(287)

Unrealized (loss) gain on available-for-sale securities, net of tax expense (benefit) of $(7), $0 and $0

(42)

^[1]

Reclassification adjustment for gains included in net income

(39)

^[1]

Other comprehensive income (loss)

207

(1,078)

(287)

Comprehensive income

$ 14,928

$ 23,580

$ 18,377

[1]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

Consolidated Statements of Comprehensive Income Statement (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013	Jul. 31, 2012
Statement of Comprehensive Income [Abstract]
Unrealized (loss) gain on available-for-sale securities, tax	$ (7)	$ 0	$ 0

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($)
$ in Thousands

Total

Additional paid-in capital [Member]

Accumulated other comprehensive income (loss) [Member]

Retained Earnings (Accumulated deficit) [Member]

Convertible Preferred Stock [Member]

Preferred Stock [Member]

Common stock [Member]

Balance (in shares) at Jul. 31, 2011

^[1]

25,357,721

14,422,557

Balance, Value at Jul. 31, 2011

^[1]

$ 17,061

$ 15,842

$ (209)

$ (35,073)

$ 36,500

$ 1

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Proceeds from issuance of common stock in connection with public offerings, net of underwriting discounts and commission (in shares)

^[1]

10,927,500

Proceeds from issuance of common stock in connection with public offerings, net of underwriting discounts and commission, Value

^[1]

143,386

143,385

$ 1

Costs incurred in connection with public offerings

^[1]

(3,502)

Conversion of preferred stock to common stock (in shares)

^[1]

(25,357,721)

25,357,721

Conversion of preferred stock to common stock, Value

^[1]

36,497

$ (36,500)

$ 3

Issuance of common stock upon exercise of stock options (in shares)

^[1]

2,211,967

Issuance of common stock upon exercise of stock options, Value

^[1]

5,067

Issuance of common stock upon RSU release, net of shares withheld for taxes (in shares)

^[1]

1,018,228

Issuance of common stock upon RSU release, net of shares withheld for taxes, Value

^[1]

(12,798)

Repurchase of unvested common stock (in shares)

^[1]

(3,005)

Repurchase of unvested common stock, Value

^[1]

Conversion of warrants to common stock (in shares)

^[1]

21,640

Stock Issued During Period, Value, Conversion of Units

^[1]

Tax benefit from the exercise of stock options and vesting of RSUs

^[1]

12,923

^[1]

486

Foreign currency translation adjustment

^[1]

18,664

^[1]

(287)

Unrealized gains on available-for-sale securities

Reclassification adjustment for gains included in net income

Balance (in shares) at Jul. 31, 2012

^[1]

53,956,608

Balance, Value at Jul. 31, 2012

^[1]

181,000

197,900

(496)

(16,409)

$ 0

$ 5

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of common stock upon exercise of stock options (in shares)

^[1]

2,904,248

Issuance of common stock upon exercise of stock options, Value

^[1]

9,124

9,123

$ 1

Issuance of common stock upon RSU release, net of shares withheld for taxes (in shares)

^[1]

1,048,421

Issuance of common stock upon RSU release, net of shares withheld for taxes, Value

^[1]

(19,963)

Tax benefit from the exercise of stock options and vesting of RSUs

^[1]

25,505

^[1]

2,586

Foreign currency translation adjustment

^[1]

24,658

^[1]

(1,102)

Unrealized gains on available-for-sale securities

^[1]

Reclassification adjustment for gains included in net income

Balance (in shares) at Jul. 31, 2013

^[1]

57,909,277

Balance, Value at Jul. 31, 2013

^[1]

221,832

215,151

(1,574)

8,249

$ 0

$ 6

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Proceeds from issuance of common stock in connection with public offerings, net of underwriting discounts and commission (in shares)

^[1]

8,306,291

Proceeds from issuance of common stock in connection with public offerings, net of underwriting discounts and commission, Value

^[1]

389,949

389,948

$ 1

Costs incurred in connection with public offerings

^[1]

$ (408)

(408)

Issuance of common stock upon exercise of stock options (in shares)

1,580,344

1,579,469

^[1]

Issuance of common stock upon exercise of stock options, Value

^[1]

$ 8,755

8,755

Issuance of common stock upon RSU release, net of shares withheld for taxes (in shares)

^[1]

1,287,224

Issuance of common stock upon RSU release, net of shares withheld for taxes, Value

^[1]

(32,799)

Tax benefit from the exercise of stock options and vesting of RSUs

^[1]

42,538

^[1]

5,891

$ 5,891

Foreign currency translation adjustment

^[1]

14,721

$ 14,721

^[1]

288

Unrealized gains on available-for-sale securities

^[1]

(42)

Reclassification adjustment for gains included in net income

^[1]

$ (39)

Balance (in shares) at Jul. 31, 2014

^[1]

69,082,261

[1]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

12 Months Ended

Jul. 31, 2014

Jul. 31, 2013

Jul. 31, 2012

CASH FLOWS FROM OPERATING ACTIVITIES:

Adjustments to reconcile net income to net cash provided by operating activities:

^[1]

$ 14,721

$ 24,658

$ 18,664

Depreciation and amortization

6,751

4,821

2,917

Excess tax benefit from exercise of stock options and vesting of RSUs

^[1],[2]

42,538

25,505

12,923

(7,067)

(2,586)

(486)

Other noncash items affecting net income

^[1]

(2,718)

(265)

7,235

3,589

554

Changes in operating assets and liabilities:

Accounts receivable

(9,276)

(8,478)

(9,325)

Prepaid expenses and other assets

(1,372)

(2,690)

(2,442)

Accounts payable

393

355

1,059

Accrued employee compensation

8,463

147

8,244

Other liabilities

5,288

4,574

(3,907)

Deferred revenues

14,181

(14,048)

(17,788)

Net cash provided by operating activities

75,491

32,547

17,094

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of available-for-sale securities

(687,419)

(212,035)

Sales and maturities of available-for-sale securities

312,149

83,567

Acquisition, net of cash acquired

(157)

(14,749)

Purchase of property and equipment

(4,993)

(9,228)

(5,619)

Decrease in restricted cash

3,532

2,323

Net cash used in investing activities

(380,420)

(148,913)

(3,296)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of common stock upon exercise of stock options

8,755

9,123

5,067

Taxes remitted on RSU awards vested

(32,799)

(20,330)

(12,430)

Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission

389,949

143,386

Costs paid in connection with stock offerings

(408)

(3,502)

Excess tax benefit from exercise of stock options and vesting of RSUs

7,067

2,586

486

Net cash provided by (used in) financing activities

372,564

(8,621)

133,007

Effect of foreign exchange rate changes on cash and cash equivalents

699

(964)

(712)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

68,334

(125,951)

146,093

CASH AND CASH EQUIVALENTS—BEGINNING OF YEAR

79,767

205,718

59,625

CASH AND CASH EQUIVALENTS—END OF YEAR

148,101

79,767

205,718

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid for interest

Cash paid for income taxes

2,141

2,266

2,058

SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES:

Conversion of convertible preferred stock and warrants into common stock upon initial public offering

36,506

Accruals for purchase of property and equipment

$ 768

$ 693

$ 4,387

[1]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[2]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements

The Company and Summary of Significant Accounting Policies and Estimates

12 Months Ended

Jul. 31, 2014

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 was 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.

On October 28, 2013, the Company closed its follow-on public offering of 8,306,291 shares of its common stock, including the underwriters’ partial exercise of their over-allotment option from the Company. The public offering price of the shares sold in the offering was $48.75 per share. The Company received aggregate proceeds of approximately $389.9 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 $0.4 million payable by the Company. No shares were sold by the Company’s shareholders in this follow-on public offering.

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 inter-company 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 goodwill and 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. Realized gains and losses from foreign currency transactions are recorded as other income (expense) in the consolidated statements of income.

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 consist of commercial paper and money market funds. Restricted cash is held in certificates of deposit pursuant to lease agreements, and, in prior periods, pursuant to secured letter of credit agreements. 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, 2014, 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 income 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 fourth quarter of each fiscal year and in the interim whenever events or changes in circumstances indicate that the carrying amount may be impaired. An entity may 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, the Company 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, the Company determines that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the two-step goodwill impairment test is not performed.

If the two-step goodwill test is performed, the Company 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.

The Company acquired goodwill during the fourth quarter of fiscal 2013. The Company did not recognize any goodwill impairment losses in fiscal 2014.

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. The Company is exposed to credit risk for cash held in financial institutions in the event of a default to the extent that such amounts recorded on the balance sheet are in excess of amounts that are insured by the Federal Deposit Insurance Corporation (“FDIC”).

No customer accounted for 10% or more of the Company’s revenues for the years ended July 31, 2014, 2013 and 2012. The Company had one customer that accounted for 10% of total accounts receivable as of July 31, 2014 and 2013, 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) licenses, perpetual software licenses, and other;


(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, 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. VSOE of fair value for services is established if a substantial majority of historical stand-alone selling prices for a service fall within a reasonably narrow price range.

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

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 can be made, the Company applies the percentage-of-completion method whereby 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 generally billed monthly on a time and material basis. The fees related to the maintenance are recognized over the period the maintenance is provided.

If reliable estimates of total project costs cannot be made or VSOE for maintenance has not been established 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. When zero gross margin method is applied for lack of reliable project estimates and subsequently project estimates become reliable, the Company switches to the percentage-of-completion; 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 zero, $3.2 million and $0.9 million for the fiscal years ended July 31, 2014, 2013 and 2012, respectively, and for service revenues was zero, $1.7 million and $0.9 million for the fiscal years ended July 31, 2014, 2013 and 2012, respectively.

Deferred Revenues

Deferred revenues represent license, maintenance and professional services amounts, which are billed to or collected from customers for which the related revenues have not been recognized. The revenues are deferred when 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. Warranty expense has been insignificant.

Advertising Costs

Advertising costs are expensed as incurred and amounted to approximately $0.2 million, $0.1 million and $0.1 million during the years ended July 31, 2014, 2013 and 2012, 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. The awards expire 10 years from the grant date. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, of the Company’s stock options using the Black-Scholes option-pricing model. The Company recognizes the fair value of stock-based compensation for awards which contain only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the compensation cost for awards which contain performance conditions based upon the probability of that performance condition being met, net of estimated forfeitures, using the graded method. Compensation cost for RSUs is generally recognized over the time-based vesting period.

In the fourth quarter of fiscal 2014, the Company changed its policy for recognizing stock-based compensation expense from the accelerated attribution method of accounting to the straight-line method of accounting for certain share-based compensation awards. Comparative financial statements for prior periods have been adjusted to apply the straight-line method retrospectively. See Note 2 “Change in Accounting Policy - Stock-based Compensation” for further information.

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.

Recent Accounting Pronouncement

Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40). This ASU provides guidance to determine when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date that the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The standard will be effective for the Company beginning July 31, 2017. The Company is evaluating the impact of the adoption of this accounting standard update on its consolidated financial statements.

Stock-Based Compensation

In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (Topic 718). This ASU provides authoritative guidance for share-based payments with a performance condition that could be achieved after the requisite service period when an employee is eligible to retire or otherwise terminate employment before the end of the period in which the performance target could be achieved and still be eligible. The standard will be effective for the Company beginning August 1, 2016. The Company is evaluating the impact of the adoption of this accounting standard update on its consolidated financial statements.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard will be effective for the Company beginning August 1, 2017. The Company is currently evaluating the impact of the adoption of this accounting standard update on its consolidated financial statements.

Presentation of Unrecognized Tax Benefits

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (Topic 740). This ASU provides 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. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

Change in Accounting Policy - Stock Based Compensation

12 Months Ended

Jul. 31, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Change in Accounting Policy - Stock Based Compensation

Change in Accounting Policy - Stock-Based Compensation

In the fourth quarter of fiscal 2014, the Company changed its policy for recognizing stock-based compensation expense from the accelerated attribution method of accounting to the straight-line method of accounting for its time-based units (or service-only awards). The Company believes the straight-line method of accounting for stock-based compensation expense for service-only awards better reflects the employees’ pattern of service. The change in accounting method has been retrospectively applied to all prior periods presented herein. Comparative financial statements of prior years have been adjusted to apply the new method retrospectively. As a result of the accounting change, retained earnings increased by $38.5 million at July 31, 2014. The following tables summarize the impact of the change in accounting method on line items in the previously issued consolidated balance sheet as of July 31, 2013, consolidated statements of income for the years ended July 31, 2013, and 2012, and the consolidated statements of cash flows for the years ended July 31, 2013, and 2012.



	As of July 31, 2013
CONSOLIDATED BALANCE SHEET	As previously reported		As adjusted	Effect of change
	(in thousands)
Deferred tax assets, non-current	21,091		14,494	(6,597	)
Additional paid-in capital	237,769		215,151	(22,618	)
Retained earnings (accumulated deficit)	(7,788	)	8,249	16,037



	Fiscal years ended July 31,
	2013							2012
CONSOLIDATED STATEMENTS OF INCOME	As Previously Reported		As Adjusted		Effect of Change			As Previously Reported		As Adjusted		Effect of Change
	(in thousands, except share and per share amounts)
Cost of maintenance revenue	$	7,613	7,216		(397		)	$	5,288	$	5,193	$	(95	)
Cost of services revenue	123,210		117,515		(5,695		)	85,360		84,050		(1,310		)
Research and development	66,346		62,991		(3,355		)	50,462		49,056		(1,406		)
Sales and marketing	53,301		50,948		(2,353		)	38,254		36,781		(1,473		)
General and administrative	32,414		31,320		(1,094		)	28,336		27,285		(1,051		)
Income before provision for income taxes	17,212		30,123		12,911			23,179		28,516		5,337
Provision for income taxes	1,829		5,465		3,636			7,979		9,852		1,873
Net income	$	15,383	$	24,658	$	9,275		$	15,200	$	18,664	$	3,464
Basic earnings per share	$	0.27	$	0.44	$	0.17		$	0.29	$	0.36	$	0.07
Diluted earnings per share	$	0.25	$	0.40	$	0.15		$	0.25	$	0.32	$	0.07
Shares used in computing basic earnings per share	56,331,018		56,331,018		—			34,774,983		34,774,983		—
Shares used in computing diluted earnings per share	61,943,087		61,569,195		(373,892		)	41,509,185		41,759,338		250,153



	Fiscal years ended July 31,
	2013									2012
CONSOLIDATED STATEMENTS OF CASH FLOWS	As Previously Reported			As Adjusted			Effect of Change			As Previously Reported		As Adjusted	Effect of Change
	(in thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	15,383		$	24,658		$	9,275		$	15,200	18,664	3,464
Stock-based compensation	38,399			25,505			(12,894		)	18,258		12,923	(5,335	)
Deferred taxes	(3,901		)	(265		)	3,636			5,362		7,235	1,873

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

Fair Value of Financial Instruments

Fair Value of Financial Instruments

12 Months Ended

Jul. 31, 2014

Fair Value Disclosures [Abstract]

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



	July 31, 2014
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(in thousands)
U.S. agency securities	$	94,048	$	30	$	(21	)	$	94,057
Asset-backed securities	1,363		—		(2		)	1,361
Commercial paper	132,442		14		(4		)	132,452
Corporate bonds	297,731		104		(182		)	297,653
U.S. government bonds	17,991		3		(3		)	17,991
Foreign government bonds	2,755		—		(1		)	2,754
Certificate of deposit	6,709		—		(1		)	6,708
Money market funds	53,959		—		—			53,959
Municipal debt securities	12,985		13		(1		)	12,997
Total	$	619,983	$	164	$	(215	)	$	619,932



	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

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, 2014
	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. agency securities	$	46,980	$	(21	)	$	—	$	—		$	46,980	$	(21	)
Asset-backed securities	1,361		(2		)	—		—			1,361		(2		)
Commercial paper	14,389		(4		)	—		—			14,389		(4		)
Corporate bonds	176,742		(182		)	—		—			176,742		(182		)
U. S. government bonds	9,489		(3		)	—		—			9,489		(3		)
Foreign government bonds	2,754		(1		)	—		—			2,754		(1		)
Certificate of deposit	2,699		(1		)	—		—			2,699		(1		)
Municipal debt securities	—		—			2,200		(1		)	2,200		(1		)
Total	$	254,414	$	(214	)	$	2,200	$	(1	)	$	256,614	$	(215	)

As of July 31, 2014, the Company had 93 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, 2014 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 value in its condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive loss. The amount of realized gains and losses reclassified into earnings are based on the specific identification of the securities sold. The realized gains and losses from sales of securities in the periods presented were immaterial.

The following table summarizes the contractual maturities of the Company’s available-for-sale securities as of July 31, 2014:



	Expected maturities for the year ending July 31,
	2015		2016		Total
	(in thousands)
U.S. agency securities	$	29,062	$	64,995	$	94,057
Asset-backed securities	1,361		—		1,361
Commercial paper	132,452		—		132,452
Corporate bonds	172,648		125,005		297,653
U.S. government bonds	9,995		7,996		17,991
Foreign government bonds	—		2,754		2,754
Certificate of deposit	4,009		2,699		6,708
Money market funds	53,959		—		53,959
Municipal debt securities	12,997		—		12,997
Total	$	416,483	$	203,449	$	619,932

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.

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

The Company obtains 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. The Company’s 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.

The Company validates 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.

The Company did not own any Level 3 financial assets or liabilities as of July 31, 2014, or 2013.

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, 2014
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents:
Commercial paper	$	—	$	66,293	$	—	$	66,293
Money market funds	53,959		—		—		53,959
Short-term investments:
U.S. agency securities	—		29,062		—		29,062
Asset-backed securities	—		1,361		—		1,361
Commercial paper	—		66,159		—		66,159
U. S. government bonds	—		9,995		—		9,995
Corporate bonds	—		172,648		—		172,648
Certificate of deposit	—		4,009		—		4,009
Municipal debt securities	—		12,997		—		12,997
Long-term investments:
U.S. agency securities	—		64,995		—		64,995
Certificate of deposit	—		2,699		—		2,699
Corporate bonds	—		125,005		—		125,005
U.S. government bonds	—		7,996		—		7,996
Foreign government bonds	—		2,754		—		2,754
Total assets	$	53,959	$	565,973	$	—	$	619,932



	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

Balance Sheet Related Disclosures [Abstract]

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

+ References + Details

Balance Sheet Components

12 Months Ended

Jul. 31, 2014

Balance Sheet Components

Property and Equipment

Property and equipment consist of the following:



	July 31, 2014			July 31, 2013
	(in thousands)
Computer hardware	$	11,882		$	8,820
Software	4,605			4,460
Furniture and fixtures	2,732			2,666
Leasehold improvements	7,069			6,536
Total property and equipment	26,288			22,482
Less accumulated depreciation	(13,681		)	(9,568		)
Property and equipment, net	$	12,607		$	12,914

As of July 31, 2014, and 2013, no property and equipment was pledged as collateral against borrowings. Amortization of leasehold improvements is included in depreciation expense. Depreciation expense was $5.3 million, $4.5 million and $2.6 million during the years ended July 31, 2014, 2013 and 2012, respectively.

Goodwill and Intangible Assets

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



	Total
	(in thousands)
Goodwill, July 31, 2013	$	9,048
Changes in carrying value	157
Goodwill, July 31, 2014	$	9,205

Refer to Note 11, Acquisition, for further details on goodwill acquired during the period.

Intangible assets consist of the following:



	July 31, 2014			July 31, 2013
	(in thousands)
Acquired technology:
Cost	$	7,200		$	7,200
Accumulated amortization	(1,761		)	(321		)
Net	$	5,439		$	6,879

Amortization expense was $1.4 million, $0.3 million and $0.3 million during the years ended July 31, 2014, 2013 and 2012, 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)
2015	$	1,440
2016	1,440
2017	1,440
2018	1,119
Total	$	5,439

Accrued Employee Compensation

Accrued employee compensation consists of the following:



	July 31, 2014		July 31, 2013
	(in thousands)
Accrued bonuses	$	19,213	$	13,072
Accrued commission	3,593		2,043
Accrued vacation	8,100		7,335
Payroll accruals	4,006		3,852
Total	$	34,912	$	26,302

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive losses by component were as follows:



	Foreign Currency Items			Unrealized gain (loss) on available-for-sale securities			Total
	(In thousands)
Balance as of July 31,2012	$	(496	)	$	—		$	(496	)
Other comprehensive income (loss) before reclassification adjustments:	(1,102		)	24			(1,078		)
Tax effect	—			—			—
Balance as of July 31, 2013	(1,598		)	24			(1,574		)
Other comprehensive income (loss) before reclassification adjustments:	288			(49		)	239
Amounts reclassified from accumulated other comprehensive income (loss) to earnings	—			(39		)	(39		)
Tax effect	—			7			7
Balance as of July 31, 2014	$	(1,310	)	$	(57	)	$	(1,367	)

Net Income per Share

12 Months Ended

Jul. 31, 2014

Earnings Per Share [Abstract]

Net Income per Share

For the years ended July 31, 2014, and 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 year ended July 31, 2012, 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.

The following table sets forth the computation of the Company’s basic and diluted net income per share for the years ended July 31, 2014, 2013 and 2012:



	Fiscal years ended July 31,
	2014		2013		2012
	(in thousands, except share and per share amounts)
Numerator:
Net income ⁽¹⁾	$	14,721	$	24,658	$	18,664
Non-cumulative dividends to preferred stockholders	—		—		(1,574		)
Undistributed earnings allocated to preferred stockholders	—		—		(4,444		)
Net income, basic	14,721		24,658		12,646
Adjustments to net income for dilutive options and restricted stock options	—		—		574
Net income, diluted	$	14,721	$	24,658	$	13,220
Net income per share: ⁽¹⁾
Basic	$	0.22	$	0.44	$	0.36
Diluted	$	0.21	$	0.40	$	0.32


(1)	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.



	Fiscal years ended July 31,
	2014	2013	2012
	(in thousands, except share and per share amounts)
Denominator: ⁽¹⁾
Weighted average shares used in computing net income per share:
Basic	65,748,896	56,331,018	34,774,983
Weighted average effect of diluted stock options	1,896,766	3,392,797	5,082,507
Weighted average effect of dilutive restricted stock units	1,467,071	1,845,380	1,871,982
Weighted average effect of dilutive stock warrants ⁽²⁾	—	—	29,866
Diluted	69,112,733	61,569,195	41,759,338


(1)	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.


(2)	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,
	2014	2013	2012
Stock options to purchase common stock ⁽¹⁾	206,136	320,325	5,037
Restricted stock units ⁽¹⁾	76,840	64,397	136,905


(1)	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements

Commitments and Contingencies

12 Months Ended

Jul. 31, 2014

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, 2014:



	Lease Obligations		Royalty Obligations⁽¹⁾		Purchase Commitments ⁽²⁾		Total
Fiscal Year Ending July 31,	(in thousands)
2015	$	5,786	$	398	$	6,141	$	12,325
2016	5,835		365		1,589		7,789
2017	5,710		212		276		6,198
2018	5,663		110		—		5,773
2019	5,102		—		—		5,102
Total	$	28,096	$	1,085	$	8,006	$	37,187


⁽¹⁾	Royalty obligations primarily represent our obligations under our non-cancellable 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-cancellable 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. On August 1, 2014, the Company amended its operating lease agreement to reduce the unsecured letter of credit to $0.8 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 $5.8 million, $5.3 million and $4.0 million during the years ended July 31, 2014, 2013 and 2012, respectively. This expense is net of sublease income of $1.2 million for the year ended July 31, 2012.

Letters of Credit

The Company had two and three outstanding letters of credit required to secure contractual commitments and prepayments as of July 31, 2014 and 2013, respectively. In addition to the unsecured letter of credit for the building lease, the Company had an unsecured letter of credit agreement related to a customer arrangement for PLN 10.0 million (approximately $3.2 million as of July 31, 2014) to secure contractual commitments and prepayments. No amounts were outstanding under our unsecured letters of credit as of July 31, 2014 or July 31, 2013.

Legal Proceedings

In December 2007, the Company was the subject of a lawsuit by a competitor, Accenture Global Services GmbH and Accenture LLP (collectively “Accenture”). In May 2011, the Company prevailed in the U.S. District Court for the District of Delaware regarding the invalidity of one of Accenture’s patents. In October 2011, the parties agreed to resolve the litigation, subject to a potential additional payment by the Company if Accenture was successful in appealing the validity of its patent. In September 2013, the U.S. Court of Appeals for the Federal Circuit affirmed the lower court decision in the Company’s favor and, in June 2014, the U.S. Supreme Court denied Accenture’s final appeal, ending the litigation. The Company will have no additional payments relating to the settlement.

In addition to the matters described above, from time to time, the Company is involved in various other legal proceedings and receives claims, 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 the Company believes 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, 2014 and 2013. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under various Software Licenses, the Company cannot estimate the amount of potential future payments, if any, related to indemnification provisions.

The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of these persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that may enable the Company to recover a portion of any future amounts paid.

Stockholders' Equity and Stock-based Compensation

12 Months Ended

Jul. 31, 2014

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,
	2014		2013		2012
Stock-based compensation expense: ⁽¹⁾	(in thousands)
Cost of license revenues	$	184	$	—	$	—
Cost of maintenance revenues	797		830		288
Cost of services revenues	11,929		6,910		2,461
Research and development	9,008		5,843		2,385
Sales and marketing	10,744		3,672		1,496
General and administrative	9,876		8,250		6,293
Total stock-based compensation expense	42,538		25,505		12,923
Tax benefit from stock-based compensation	15,905		9,902		5,061
Total stock-based compensation expense, net of tax effect	$	26,633	$	15,603	$	7,862


(1)	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements

Included in fiscal 2014 stock-based compensation was $1.6 million of expense for performance-based awards, which were tied to fiscal year 2014 financial results. 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 executives, $0.2 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, 2014, total unrecognized compensation cost, adjusted for estimated forfeitures, was as follows:



	As of July 31, 2014
	Unrecognized Expense		Average Expected Recognition Period
	(in thousands)		(in years)
Restricted stock units	$	83,505	2.2
Stock options	6,019		2.0
	$	89,524

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, 2013	4,027,601		$	19.27
Granted	1,667,433		43.87
Released	(2,007,423	)	18.59
Canceled	(303,390	)	31.48
Balance as of July 31, 2014	3,384,221		$	30.70

The weighted average per share grant date fair value of RSUs granted during each of the fiscal years ended July 31, 2014, 2013 and 2012was $43.87, $33.68 and $13.65, respectively. The fair value of RSUs released during the years ended July 31, 2014, 2013 and 2012 was $91.3 million, $56.2 million and $41.2 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, 2013	3,763,228		$	6.74	5.7	$	139,315
Granted	225,930		46.63
Exercised	(1,580,344	)	5.53
Canceled	(8,561	)	21.75
Balance as of July 31, 2014	2,400,253		$	11.24	5.5	$	71,640
Vested and expected to vest as of July 31, 2014	2,376,443		$	10.96	5.4	$	71,503
Exercisable as of July 31, 2014	2,040,125		$	6.32	5.5	$	70,039


⁽¹⁾	Aggregate intrinsic value represents the difference between the exercise price of the option and the Company’s closing stock price of $40.50 and $43.76 on July 31, 2014, and July 31, 2013, respectively.

The options exercisable as of July 31, 2014, include options that are exercisable prior to vesting. The total intrinsic value of options exercised was approximately $65.3 million, $86.0 million and $31.2 million for the years ended July 31, 2014, 2013 and 2012, respectively. The weighted average grant date fair value of options granted was $46.63, $14.06 and $4.51 for the years ended July 31, 2014, 2013 and 2012, respectively.

Additional information regarding options outstanding as of July 31, 2014 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	99,010	1.4	$	0.68	99,010	$	0.68
1.25—2.56	71,150	2.1	2.17		71,150	2.17
2.74	423,312	3.0	2.74		423,312	2.74
3.50	124,860	3.7	3.50		124,860	3.50
3.73	351,886	4.7	3.73		351,886	3.73
3.92	338,523	5.4	3.92		338,523	3.92
4.50—7.50	309,954	6.8	7.14		304,954	7.13
8.65—11.00	210,337	7.1	8.78		208,878	8.78
29.03—32.25	221,476	8.1	31.99		67,905	31.41
35.00—53.15	249,745	9.1	45.53		49,647	46.07
	2,400,253	5.5	$	11.24	2,040,125	$	6.32

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,
	2014	2013	2012
Expected life (in years)	5.0 - 6.1	5.1 - 6.1	5.3 - 6.3
Risk-free interest rate	1.5% - 2.0%	0.6% - 1.2%	1.2% - 1.5%
Expected volatility	41.3% - 46.2%	45.1% - 48.7%	44.1% - 46.4%
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.

In the fourth quarter of fiscal 2014, the Company changed its policy for recognizing stock-based compensation expense from the accelerated attribution method of accounting to the straight-line method of accounting for certain share-based compensation awards. See Note 2 “Change in Accounting Policy - Stock-based Compensation” for additional discussion.

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, 2014 and 2013, 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, 2014 and 2013, no shares of convertible preferred stock were issued and outstanding.

Common Stock Reserved for Future Issuance

As of July 31, 2014 and 2013, the Company was authorized to issue 500,000,000 common shares with a par value of $0.0001 per share, respectively, and 69,082,261 and 57,909,277 common shares were issued and outstanding, respectively. As of July 31, 2014 and 2013, the Company had reserved shares of common stock, on an as-if-converted basis, for future issuance as follows:



	July 31, 2014	July 31, 2013
Exercise of stock options to purchase common stock	2,400,253	3,763,228
Vesting of restricted stock units	3,384,221	4,027,601
Issuances of shares available under stock plans	11,703,962	9,194,058
Total common stock reserved for issuance	17,488,436	16,984,887

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 provided for the issuance of incentive and nonstatutory options to employees and nonemployees of the Company.

In July 2009, the Board adopted and the stockholders approved the 2009 Stock Plan (“French Plan”), which provided for nonstatutory options to employees.

In June 2010, the Board adopted and the stockholders approved the 2010 Restricted Stock Unit Plan (“2010 Plan”), which provided for the issuance of restricted and performance stock units to employees and nonemployees.

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, 2014, the Company had reserved 11,703,962 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, 2014

Income Tax Disclosure [Abstract]

Income Taxes

The Company’s income before provision for income taxes for the years ended July 31, 2014, 2013 and 2012 is as follows:



	Fiscal years ended July 31,
	2014		2013		2012
	(in thousands)
Domestic	$	11,956	$	25,725	$	22,370
International	7,990		4,398		6,146
Income before provision for income taxes ⁽¹⁾	$	19,946	$	30,123	$	28,516


⁽¹⁾	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

The provision for income taxes consists of the following:



	Fiscal years ended July 31,
	2014			2013			2012
	(in thousands)
Current:
U.S. federal	$	5,235		$	1,296		$	—
State	1,326			999			544
Foreign	2,509			3,479			1,522
Total current	9,070			5,774			2,066
Deferred:
U.S. federal	(4,277		)	(258		)	6,968
State	78			483			(69		)
Foreign	354			(534		)	887
Total deferred	(3,845		)	(309		)	7,786
Total provision for income taxes ⁽¹⁾	$	5,225		$	5,465		$	9,852


⁽¹⁾	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

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, 2014, 2013 and 2012 as follows:



	Fiscal years ended July 31,
	2014			2013			2012
	(in thousands)
Computed tax expense	$	6,977		$	10,538		$	9,972
Nondeductible items and other	1,164			(577		)	694
State taxes, net of federal benefit	840			(858		)	(644		)
Foreign income taxed at different rates	(207		)	1,405			258
Tax credits	(3,612		)	(7,199		)	(1,356		)
Change in valuation allowance	63			2,156			928
Total provision for income taxes ⁽¹⁾	$	5,225		$	5,465		$	9,852

⁽¹⁾See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

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



	As of July 31,
	2014		2013
	(in thousands)
Accruals and reserves	$	8,487	$	3,646
Stock-based compensation	4,347		5,076
Deferred revenues	1,485		510
Property and equipment	298		—
State taxes	1		—
Net operating loss carryforwards	1,161		2,244
Tax credits	11,699		14,233
Total deferred tax assets	27,478		25,709
Less valuation allowance	4,938		4,874
Net deferred tax assets	22,540		20,835
Less deferred tax liabilities:
Property and equipment	—		440
Intangible assets	1,701		2,268
Foreign deferred revenue	727		736
Total net deferred tax assets	$	20,112	$	17,391

During the years ended July 31, 2014, 2013 and 2012, 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 valuation allowance of $4.9 million and $4.9 million remained as of July 31, 2014 and 2013, respectively, for California research and development credits that were not more likely than not realizable.

As of July 31, 2014, the Company had U. S. federal, California and other states net operating loss (“NOL”) carryforwards of $177.5 million, $83.2 million, and $7.0 million, respectively. The U. S. federal and California NOL carryforwards will start to expire in 2026 and 2016, respectively.

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



	Fiscal years ended July 31,
	2014		2013		2012
	(in thousands)
U.S. federal	$	15,956	$	12,973	$	6,565
California	11,657		11,980		7,558
Total R&D credit carryforwards	$	27,613	$	24,953	$	14,123

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 through reduction to income tax payable on the tax returns. As a result, the pre-tax excess tax benefits included in federal and California net operating loss carryforwards on the tax returns but not reflected in deferred tax assets for fiscal year 2014 are $176.3 million and $74.3 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, 2014, U.S. income taxes were not provided for on the cumulative total of $19.4 million of undistributed earnings from certain foreign subsidiaries. As of July 31, 2014, the unrecognized deferred tax liability for these earnings was approximately $2.3 million.

Unrecognized Tax Benefits

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



	Fiscal years ended July 31,
	2014			2013		2012
	(in thousands)
Unrecognized benefit - beginning of period	$	6,727		$	3,937	$	2,419
Gross increases - prior period tax positions	(368		)	370		478
Gross increases - current period tax positions	1,617			2,420		1,040
Unrecognized benefit - end of period	$	7,976		$	6,727	$	3,937

During the year ended July 31, 2014, the Company’s unrecognized tax benefits increased by $1.2 million, primarily associated with the Company’s federal and California R&D credits. As of July 31, 2014, the Company had unrecognized tax benefits of $4.3 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 2014. 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.

As of July 31, 2014, the Company has tax audits in progress in certain foreign jurisdictions. To the extent the final tax liabilities are different from the amounts originally accrued, the increases or decreases are recorded as income tax expense or benefit in the consolidated statements of income. While the Company believes that the resolution of these audits will not have a material adverse impact on the Company’s results of operations, the outcome is subject to uncertainty.

Employee 401(k) Plan	12 Months Ended
Employee 401(k) Plan	Jul. 31, 2014
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 60% of their eligible salary up to the statutory prescribed annual limit. Beginning January 1, 2014, the Company increased its matching for employees’ contributions up to $4,000 per participant per calendar year.

Segment Information

12 Months Ended

Jul. 31, 2014

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,
	2014		2013		2012
	(in thousands)
United States	$	203,791	$	172,793	$	127,484
Canada	39,100		42,632		35,690
Other Americas	8,106		6,932		3,850
Total Americas	250,997		222,357		167,024
United Kingdom	37,890		20,660		16,212
Other EMEA	35,149		27,543		14,672
Total EMEA	73,039		48,203		30,884
APAC	26,210		30,089		34,153
Total revenues	$	350,246	$	300,649	$	232,061

No country other than those listed above accounted for more than 10% of revenues during the years ended July 31, 2014, 2013 and 2012.

The following table sets forth the Company’s long-lived assets, including goodwill and intangibles, net by geographic region:



	July 31, 2014		July 31, 2013
	(in thousands)
Americas	$	25,573	$	27,280
Europe	950		1,276
Asia Pacific	728		285
Total	$	27,251	$	28,841

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.

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Acquisition

12 Months Ended

Jul. 31, 2014

Business Combinations [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 is 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 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 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.

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).

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Organization, Consolidation and Presentation of Financial Statements [Abstract]

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

12 Months Ended

Jul. 31, 2014

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

The Company acquired goodwill during the fourth quarter of fiscal 2013. The Company did not recognize any goodwill impairment losses in fiscal 2014.

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) licenses, perpetual software licenses, and other;


(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 $0.2 million, $0.1 million and $0.1 million during the years ended July 31, 2014, 2013 and 2012, respectively.

Stock-Based Compensation

The following tables summarize the impact of the change in accounting method on line items in the previously issued consolidated balance sheet as of July 31, 2013, consolidated statements of income for the years ended July 31, 2013, and 2012, and the consolidated statements of cash flows for the years ended July 31, 2013, and 2012.



	As of July 31, 2013
CONSOLIDATED BALANCE SHEET	As previously reported		As adjusted	Effect of change
	(in thousands)
Deferred tax assets, non-current	21,091		14,494	(6,597	)
Additional paid-in capital	237,769		215,151	(22,618	)
Retained earnings (accumulated deficit)	(7,788	)	8,249	16,037



	Fiscal years ended July 31,
	2013							2012
CONSOLIDATED STATEMENTS OF INCOME	As Previously Reported		As Adjusted		Effect of Change			As Previously Reported		As Adjusted		Effect of Change
	(in thousands, except share and per share amounts)
Cost of maintenance revenue	$	7,613	7,216		(397		)	$	5,288	$	5,193	$	(95	)
Cost of services revenue	123,210		117,515		(5,695		)	85,360		84,050		(1,310		)
Research and development	66,346		62,991		(3,355		)	50,462		49,056		(1,406		)
Sales and marketing	53,301		50,948		(2,353		)	38,254		36,781		(1,473		)
General and administrative	32,414		31,320		(1,094		)	28,336		27,285		(1,051		)
Income before provision for income taxes	17,212		30,123		12,911			23,179		28,516		5,337
Provision for income taxes	1,829		5,465		3,636			7,979		9,852		1,873
Net income	$	15,383	$	24,658	$	9,275		$	15,200	$	18,664	$	3,464
Basic earnings per share	$	0.27	$	0.44	$	0.17		$	0.29	$	0.36	$	0.07
Diluted earnings per share	$	0.25	$	0.40	$	0.15		$	0.25	$	0.32	$	0.07
Shares used in computing basic earnings per share	56,331,018		56,331,018		—			34,774,983		34,774,983		—
Shares used in computing diluted earnings per share	61,943,087		61,569,195		(373,892		)	41,509,185		41,759,338		250,153



	Fiscal years ended July 31,
	2013									2012
CONSOLIDATED STATEMENTS OF CASH FLOWS	As Previously Reported			As Adjusted			Effect of Change			As Previously Reported		As Adjusted	Effect of Change
	(in thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	15,383		$	24,658		$	9,275		$	15,200	18,664	3,464
Stock-based compensation	38,399			25,505			(12,894		)	18,258		12,923	(5,335	)
Deferred taxes	(3,901		)	(265		)	3,636			5,362		7,235	1,873

Income Taxes

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

Recent Accounting Pronouncements

Recent Accounting Pronouncement

Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

Stock-Based Compensation

Revenue from Contracts with Customers

Presentation of Unrecognized Tax Benefits

Change in Accounting Policy - Stock Based Compensation (Policies)

12 Months Ended

Jul. 31, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Stock-Based Compensation



	As of July 31, 2013
CONSOLIDATED BALANCE SHEET	As previously reported		As adjusted	Effect of change
	(in thousands)
Deferred tax assets, non-current	21,091		14,494	(6,597	)
Additional paid-in capital	237,769		215,151	(22,618	)
Retained earnings (accumulated deficit)	(7,788	)	8,249	16,037



	Fiscal years ended July 31,
	2013							2012
CONSOLIDATED STATEMENTS OF INCOME	As Previously Reported		As Adjusted		Effect of Change			As Previously Reported		As Adjusted		Effect of Change
	(in thousands, except share and per share amounts)
Cost of maintenance revenue	$	7,613	7,216		(397		)	$	5,288	$	5,193	$	(95	)
Cost of services revenue	123,210		117,515		(5,695		)	85,360		84,050		(1,310		)
Research and development	66,346		62,991		(3,355		)	50,462		49,056		(1,406		)
Sales and marketing	53,301		50,948		(2,353		)	38,254		36,781		(1,473		)
General and administrative	32,414		31,320		(1,094		)	28,336		27,285		(1,051		)
Income before provision for income taxes	17,212		30,123		12,911			23,179		28,516		5,337
Provision for income taxes	1,829		5,465		3,636			7,979		9,852		1,873
Net income	$	15,383	$	24,658	$	9,275		$	15,200	$	18,664	$	3,464
Basic earnings per share	$	0.27	$	0.44	$	0.17		$	0.29	$	0.36	$	0.07
Diluted earnings per share	$	0.25	$	0.40	$	0.15		$	0.25	$	0.32	$	0.07
Shares used in computing basic earnings per share	56,331,018		56,331,018		—			34,774,983		34,774,983		—
Shares used in computing diluted earnings per share	61,943,087		61,569,195		(373,892		)	41,509,185		41,759,338		250,153



	Fiscal years ended July 31,
	2013									2012
CONSOLIDATED STATEMENTS OF CASH FLOWS	As Previously Reported			As Adjusted			Effect of Change			As Previously Reported		As Adjusted	Effect of Change
	(in thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	15,383		$	24,658		$	9,275		$	15,200	18,664	3,464
Stock-based compensation	38,399			25,505			(12,894		)	18,258		12,923	(5,335	)
Deferred taxes	(3,901		)	(265		)	3,636			5,362		7,235	1,873

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

12 Months Ended

Jul. 31, 2014

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

Change in Accounting Policy - Stock Based Compensation (Tables)

12 Months Ended

Jul. 31, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Impact of the Change in Accounting Method



	As of July 31, 2013
CONSOLIDATED BALANCE SHEET	As previously reported		As adjusted	Effect of change
	(in thousands)
Deferred tax assets, non-current	21,091		14,494	(6,597	)
Additional paid-in capital	237,769		215,151	(22,618	)
Retained earnings (accumulated deficit)	(7,788	)	8,249	16,037



	Fiscal years ended July 31,
	2013							2012
CONSOLIDATED STATEMENTS OF INCOME	As Previously Reported		As Adjusted		Effect of Change			As Previously Reported		As Adjusted		Effect of Change
	(in thousands, except share and per share amounts)
Cost of maintenance revenue	$	7,613	7,216		(397		)	$	5,288	$	5,193	$	(95	)
Cost of services revenue	123,210		117,515		(5,695		)	85,360		84,050		(1,310		)
Research and development	66,346		62,991		(3,355		)	50,462		49,056		(1,406		)
Sales and marketing	53,301		50,948		(2,353		)	38,254		36,781		(1,473		)
General and administrative	32,414		31,320		(1,094		)	28,336		27,285		(1,051		)
Income before provision for income taxes	17,212		30,123		12,911			23,179		28,516		5,337
Provision for income taxes	1,829		5,465		3,636			7,979		9,852		1,873
Net income	$	15,383	$	24,658	$	9,275		$	15,200	$	18,664	$	3,464
Basic earnings per share	$	0.27	$	0.44	$	0.17		$	0.29	$	0.36	$	0.07
Diluted earnings per share	$	0.25	$	0.40	$	0.15		$	0.25	$	0.32	$	0.07
Shares used in computing basic earnings per share	56,331,018		56,331,018		—			34,774,983		34,774,983		—
Shares used in computing diluted earnings per share	61,943,087		61,569,195		(373,892		)	41,509,185		41,759,338		250,153



	Fiscal years ended July 31,
	2013									2012
CONSOLIDATED STATEMENTS OF CASH FLOWS	As Previously Reported			As Adjusted			Effect of Change			As Previously Reported		As Adjusted	Effect of Change
	(in thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	15,383		$	24,658		$	9,275		$	15,200	18,664	3,464
Stock-based compensation	38,399			25,505			(12,894		)	18,258		12,923	(5,335	)
Deferred taxes	(3,901		)	(265		)	3,636			5,362		7,235	1,873

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
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-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

Schedule of Available-for-sale Securities Reconciliation

Fair Value of Financial Instruments (Tables)

12 Months Ended

Jul. 31, 2014

Fair Value Disclosures [Abstract]

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



	July 31, 2014
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(in thousands)
U.S. agency securities	$	94,048	$	30	$	(21	)	$	94,057
Asset-backed securities	1,363		—		(2		)	1,361
Commercial paper	132,442		14		(4		)	132,452
Corporate bonds	297,731		104		(182		)	297,653
U.S. government bonds	17,991		3		(3		)	17,991
Foreign government bonds	2,755		—		(1		)	2,754
Certificate of deposit	6,709		—		(1		)	6,708
Money market funds	53,959		—		—			53,959
Municipal debt securities	12,985		13		(1		)	12,997
Total	$	619,983	$	164	$	(215	)	$	619,932



	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

Schedule of Unrealized Loss on Investments



	July 31, 2014
	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. agency securities	$	46,980	$	(21	)	$	—	$	—		$	46,980	$	(21	)
Asset-backed securities	1,361		(2		)	—		—			1,361		(2		)
Commercial paper	14,389		(4		)	—		—			14,389		(4		)
Corporate bonds	176,742		(182		)	—		—			176,742		(182		)
U. S. government bonds	9,489		(3		)	—		—			9,489		(3		)
Foreign government bonds	2,754		(1		)	—		—			2,754		(1		)
Certificate of deposit	2,699		(1		)	—		—			2,699		(1		)
Municipal debt securities	—		—			2,200		(1		)	2,200		(1		)
Total	$	254,414	$	(214	)	$	2,200	$	(1	)	$	256,614	$	(215	)

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, 2014:



	Expected maturities for the year ending July 31,
	2015		2016		Total
	(in thousands)
U.S. agency securities	$	29,062	$	64,995	$	94,057
Asset-backed securities	1,361		—		1,361
Commercial paper	132,452		—		132,452
Corporate bonds	172,648		125,005		297,653
U.S. government bonds	9,995		7,996		17,991
Foreign government bonds	—		2,754		2,754
Certificate of deposit	4,009		2,699		6,708
Money market funds	53,959		—		53,959
Municipal debt securities	12,997		—		12,997
Total	$	416,483	$	203,449	$	619,932

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, 2014
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents:
Commercial paper	$	—	$	66,293	$	—	$	66,293
Money market funds	53,959		—		—		53,959
Short-term investments:
U.S. agency securities	—		29,062		—		29,062
Asset-backed securities	—		1,361		—		1,361
Commercial paper	—		66,159		—		66,159
U. S. government bonds	—		9,995		—		9,995
Corporate bonds	—		172,648		—		172,648
Certificate of deposit	—		4,009		—		4,009
Municipal debt securities	—		12,997		—		12,997
Long-term investments:
U.S. agency securities	—		64,995		—		64,995
Certificate of deposit	—		2,699		—		2,699
Corporate bonds	—		125,005		—		125,005
U.S. government bonds	—		7,996		—		7,996
Foreign government bonds	—		2,754		—		2,754
Total assets	$	53,959	$	565,973	$	—	$	619,932



	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

Balance Sheet Components (Tables)

12 Months Ended

Jul. 31, 2014

Balance Sheet Related Disclosures [Abstract]

Property and equipment

Property and equipment consist of the following:



	July 31, 2014			July 31, 2013
	(in thousands)
Computer hardware	$	11,882		$	8,820
Software	4,605			4,460
Furniture and fixtures	2,732			2,666
Leasehold improvements	7,069			6,536
Total property and equipment	26,288			22,482
Less accumulated depreciation	(13,681		)	(9,568		)
Property and equipment, net	$	12,607		$	12,914

Goodwill and Intangible Assets

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



	Total
	(in thousands)
Goodwill, July 31, 2013	$	9,048
Changes in carrying value	157
Goodwill, July 31, 2014	$	9,205

Refer to Note 11, Acquisition, for further details on goodwill acquired during the period.

Intangible assets consist of the following:



	July 31, 2014			July 31, 2013
	(in thousands)
Acquired technology:
Cost	$	7,200		$	7,200
Accumulated amortization	(1,761		)	(321		)
Net	$	5,439		$	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)
2015	$	1,440
2016	1,440
2017	1,440
2018	1,119
Total	$	5,439

Accrued Employee Compensation

Accrued employee compensation consists of the following:



	July 31, 2014		July 31, 2013
	(in thousands)
Accrued bonuses	$	19,213	$	13,072
Accrued commission	3,593		2,043
Accrued vacation	8,100		7,335
Payroll accruals	4,006		3,852
Total	$	34,912	$	26,302

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive losses by component were as follows:



	Foreign Currency Items			Unrealized gain (loss) on available-for-sale securities			Total
	(In thousands)
Balance as of July 31,2012	$	(496	)	$	—		$	(496	)
Other comprehensive income (loss) before reclassification adjustments:	(1,102		)	24			(1,078		)
Tax effect	—			—			—
Balance as of July 31, 2013	(1,598		)	24			(1,574		)
Other comprehensive income (loss) before reclassification adjustments:	288			(49		)	239
Amounts reclassified from accumulated other comprehensive income (loss) to earnings	—			(39		)	(39		)
Tax effect	—			7			7
Balance as of July 31, 2014	$	(1,310	)	$	(57	)	$	(1,367	)

Net Income per Share (Tables)

12 Months Ended

Jul. 31, 2014

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, 2014, 2013 and 2012:



	Fiscal years ended July 31,
	2014		2013		2012
	(in thousands, except share and per share amounts)
Numerator:
Net income ⁽¹⁾	$	14,721	$	24,658	$	18,664
Non-cumulative dividends to preferred stockholders	—		—		(1,574		)
Undistributed earnings allocated to preferred stockholders	—		—		(4,444		)
Net income, basic	14,721		24,658		12,646
Adjustments to net income for dilutive options and restricted stock options	—		—		574
Net income, diluted	$	14,721	$	24,658	$	13,220
Net income per share: ⁽¹⁾
Basic	$	0.22	$	0.44	$	0.36
Diluted	$	0.21	$	0.40	$	0.32


(1)	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.



	Fiscal years ended July 31,
	2014	2013	2012
	(in thousands, except share and per share amounts)
Denominator: ⁽¹⁾
Weighted average shares used in computing net income per share:
Basic	65,748,896	56,331,018	34,774,983
Weighted average effect of diluted stock options	1,896,766	3,392,797	5,082,507
Weighted average effect of dilutive restricted stock units	1,467,071	1,845,380	1,871,982
Weighted average effect of dilutive stock warrants ⁽²⁾	—	—	29,866
Diluted	69,112,733	61,569,195	41,759,338


(1)	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.


(2)	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,
	2014	2013	2012
Stock options to purchase common stock ⁽¹⁾	206,136	320,325	5,037
Restricted stock units ⁽¹⁾	76,840	64,397	136,905


(1)	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements

Commitments and Contingencies (Tables)

12 Months Ended

Jul. 31, 2014

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, 2014:



	Lease Obligations		Royalty Obligations⁽¹⁾		Purchase Commitments ⁽²⁾		Total
Fiscal Year Ending July 31,	(in thousands)
2015	$	5,786	$	398	$	6,141	$	12,325
2016	5,835		365		1,589		7,789
2017	5,710		212		276		6,198
2018	5,663		110		—		5,773
2019	5,102		—		—		5,102
Total	$	28,096	$	1,085	$	8,006	$	37,187


⁽¹⁾	Royalty obligations primarily represent our obligations under our non-cancellable 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-cancellable 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, 2014

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,
	2014		2013		2012
Stock-based compensation expense: ⁽¹⁾	(in thousands)
Cost of license revenues	$	184	$	—	$	—
Cost of maintenance revenues	797		830		288
Cost of services revenues	11,929		6,910		2,461
Research and development	9,008		5,843		2,385
Sales and marketing	10,744		3,672		1,496
General and administrative	9,876		8,250		6,293
Total stock-based compensation expense	42,538		25,505		12,923
Tax benefit from stock-based compensation	15,905		9,902		5,061
Total stock-based compensation expense, net of tax effect	$	26,633	$	15,603	$	7,862


(1)	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements

Schedule of Unrecognized Compensation Cost, Nonvested Awards

As of July 31, 2014, total unrecognized compensation cost, adjusted for estimated forfeitures, was as follows:



	As of July 31, 2014
	Unrecognized Expense		Average Expected Recognition Period
	(in thousands)		(in years)
Restricted stock units	$	83,505	2.2
Stock options	6,019		2.0
	$	89,524

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, 2013	4,027,601		$	19.27
Granted	1,667,433		43.87
Released	(2,007,423	)	18.59
Canceled	(303,390	)	31.48
Balance as of July 31, 2014	3,384,221		$	30.70

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, 2013	3,763,228		$	6.74	5.7	$	139,315
Granted	225,930		46.63
Exercised	(1,580,344	)	5.53
Canceled	(8,561	)	21.75
Balance as of July 31, 2014	2,400,253		$	11.24	5.5	$	71,640
Vested and expected to vest as of July 31, 2014	2,376,443		$	10.96	5.4	$	71,503
Exercisable as of July 31, 2014	2,040,125		$	6.32	5.5	$	70,039


⁽¹⁾	Aggregate intrinsic value represents the difference between the exercise price of the option and the Company’s closing stock price of $40.50 and $43.76 on July 31, 2014, and July 31, 2013, respectively.

Options outstanding by exercise price range

Additional information regarding options outstanding as of July 31, 2014 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	99,010	1.4	$	0.68	99,010	$	0.68
1.25—2.56	71,150	2.1	2.17		71,150	2.17
2.74	423,312	3.0	2.74		423,312	2.74
3.50	124,860	3.7	3.50		124,860	3.50
3.73	351,886	4.7	3.73		351,886	3.73
3.92	338,523	5.4	3.92		338,523	3.92
4.50—7.50	309,954	6.8	7.14		304,954	7.13
8.65—11.00	210,337	7.1	8.78		208,878	8.78
29.03—32.25	221,476	8.1	31.99		67,905	31.41
35.00—53.15	249,745	9.1	45.53		49,647	46.07
	2,400,253	5.5	$	11.24	2,040,125	$	6.32

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,
	2014	2013	2012
Expected life (in years)	5.0 - 6.1	5.1 - 6.1	5.3 - 6.3
Risk-free interest rate	1.5% - 2.0%	0.6% - 1.2%	1.2% - 1.5%
Expected volatility	41.3% - 46.2%	45.1% - 48.7%	44.1% - 46.4%
Expected dividend yield	—%	—%	—%

Common Stock Reserved for Issuance

As of July 31, 2014 and 2013, the Company had reserved shares of common stock, on an as-if-converted basis, for future issuance as follows:



	July 31, 2014	July 31, 2013
Exercise of stock options to purchase common stock	2,400,253	3,763,228
Vesting of restricted stock units	3,384,221	4,027,601
Issuances of shares available under stock plans	11,703,962	9,194,058
Total common stock reserved for issuance	17,488,436	16,984,887

Income Taxes (Tables)

12 Months Ended

Jul. 31, 2014

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, 2014, 2013 and 2012 is as follows:



	Fiscal years ended July 31,
	2014		2013		2012
	(in thousands)
Domestic	$	11,956	$	25,725	$	22,370
International	7,990		4,398		6,146
Income before provision for income taxes ⁽¹⁾	$	19,946	$	30,123	$	28,516


⁽¹⁾	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

Schedule of Components of Income Tax Expense

The provision for income taxes consists of the following:



	Fiscal years ended July 31,
	2014			2013			2012
	(in thousands)
Current:
U.S. federal	$	5,235		$	1,296		$	—
State	1,326			999			544
Foreign	2,509			3,479			1,522
Total current	9,070			5,774			2,066
Deferred:
U.S. federal	(4,277		)	(258		)	6,968
State	78			483			(69		)
Foreign	354			(534		)	887
Total deferred	(3,845		)	(309		)	7,786
Total provision for income taxes ⁽¹⁾	$	5,225		$	5,465		$	9,852


⁽¹⁾	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

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, 2014, 2013 and 2012 as follows:



	Fiscal years ended July 31,
	2014			2013			2012
	(in thousands)
Computed tax expense	$	6,977		$	10,538		$	9,972
Nondeductible items and other	1,164			(577		)	694
State taxes, net of federal benefit	840			(858		)	(644		)
Foreign income taxed at different rates	(207		)	1,405			258
Tax credits	(3,612		)	(7,199		)	(1,356		)
Change in valuation allowance	63			2,156			928
Total provision for income taxes ⁽¹⁾	$	5,225		$	5,465		$	9,852

⁽¹⁾See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

Tax effects of temporary differences

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



	As of July 31,
	2014		2013
	(in thousands)
Accruals and reserves	$	8,487	$	3,646
Stock-based compensation	4,347		5,076
Deferred revenues	1,485		510
Property and equipment	298		—
State taxes	1		—
Net operating loss carryforwards	1,161		2,244
Tax credits	11,699		14,233
Total deferred tax assets	27,478		25,709
Less valuation allowance	4,938		4,874
Net deferred tax assets	22,540		20,835
Less deferred tax liabilities:
Property and equipment	—		440
Intangible assets	1,701		2,268
Foreign deferred revenue	727		736
Total net deferred tax assets	$	20,112	$	17,391

Net operating loss carryforwards

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



	Fiscal years ended July 31,
	2014		2013		2012
	(in thousands)
U.S. federal	$	15,956	$	12,973	$	6,565
California	11,657		11,980		7,558
Total R&D credit carryforwards	$	27,613	$	24,953	$	14,123

Summary of activity related to unrecognized tax benefits

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



	Fiscal years ended July 31,
	2014			2013		2012
	(in thousands)
Unrecognized benefit - beginning of period	$	6,727		$	3,937	$	2,419
Gross increases - prior period tax positions	(368		)	370		478
Gross increases - current period tax positions	1,617			2,420		1,040
Unrecognized benefit - end of period	$	7,976		$	6,727	$	3,937

Segment Information (Tables)

12 Months Ended

Jul. 31, 2014

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,
	2014		2013		2012
	(in thousands)
United States	$	203,791	$	172,793	$	127,484
Canada	39,100		42,632		35,690
Other Americas	8,106		6,932		3,850
Total Americas	250,997		222,357		167,024
United Kingdom	37,890		20,660		16,212
Other EMEA	35,149		27,543		14,672
Total EMEA	73,039		48,203		30,884
APAC	26,210		30,089		34,153
Total revenues	$	350,246	$	300,649	$	232,061

Property and equipment, net by geographic region

The following table sets forth the Company’s long-lived assets, including goodwill and intangibles, net by geographic region:



	July 31, 2014		July 31, 2013
	(in thousands)
Americas	$	25,573	$	27,280
Europe	950		1,276
Asia Pacific	728		285
Total	$	27,251	$	28,841

Acquisition (Tables)

12 Months Ended

Jul. 31, 2014

Business Combinations [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, 2014
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

Oct. 28, 2013

USD ($)

$ / shares

Apr. 24, 2012

USD ($)

$ / shares

Jan. 30, 2012

USD ($)

$ / shares

Jul. 31, 2014

USD ($)

customer

revenue_source

Jul. 31, 2013

USD ($)

customer

Jul. 31, 2012

USD ($)

customer

Apr. 30, 2012

Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission

$ 389,949,000

$ 0

$ 143,386,000

Offering expenses related to public offering

^[1]

408,000

$ 3,502,000

Outstanding warrants (in shares) | shares

21,640

Goodwill, Intangible Assets and Long Lived Assets Impairment [Abstract]

Goodwill, Impairment Loss

$ 0

Concentration of Credit Risk [Abstract]

Number of customers concentration of credit risk revenues | customer

Number of customers concentration of credit risk receivables | customer

Accounts Receivable and Allowance for Doubtful Accounts [Abstract]

Allowance for Doubtful Accounts Receivable

$ 0

Provision for doubtful accounts

$ 0

Number of revenue sources | revenue_source

Adjustment for license revenues

$ 0

3,200,000

900,000

Adjustment for service revenues

$ 0

1,700,000

900,000

Deferred Revenues [Abstract]

Period in which deferred revenues expected to be recognized (in years)

1 year

Advertising Costs [Abstract]

Advertising costs

$ 200,000

$ 100,000

Restricted stock units RSUs [Member]

Stock-based Compensation [Abstract]

Period of RSUs time based vesting (in years)

4 years

Period of expiration for share based payment awards (in years)

10 years

Minimum [Member]

Concentration of Credit Risk [Abstract]

Percentage of revenue

10.00%

Percentage of accounts receivable

10.00%

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]

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]

Period of standard license agreement term (in years)

3 years

Licensing Agreements [Member] | Maximum [Member]

Period of standard license agreement term (in years)

7 years

Follow-on Public Offerings [Member]

Issuance of common stock under public offering (in shares) | shares

750,000

Price of common stock under public offerings (in USD per share) | $ / shares

$ 48.75

$ 28.25

Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission

$ 389,900,000

$ 20,400,000

Offering expenses related to public offering

$ 400,000

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

8,306,291

8,450,000

IPO [Member]

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 USD 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

IPO [Member] | Preferred Stock [Member]

Outstanding warrants (in shares) | shares

69,529

Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares

$ 5.03

IPO [Member] | Common Stock [Member]

Outstanding warrants (in shares) | shares

69,529

Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares

$ 5.03

[1]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

Change in Accounting Policy - Stock Based Compensation (Details) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Jul. 31, 2014

Jul. 31, 2013

Jul. 31, 2012

Accounting change effect on retained earnings

$ 38,500

Deferred tax assets, non-current

^[1]

8,681

$ 14,494

Retained earnings (accumulated deficit)

^[1]

629,076

215,151

^[1]

22,970

8,249

Cost of maintenance revenue

^[1]

8,118

7,216

$ 5,193

Cost of services revenue

^[1]

136,387

117,515

84,050

^[1]

76,178

62,991

49,056

^[1]

71,295

50,948

36,781

^[1]

35,404

31,320

27,285

^[1],[2]

19,946

30,123

28,516

^[1],[3],[4]

5,225

5,465

9,852

Basic earnings per share (in USD per share)

^[1]

$ 14,721

$ 24,658

$ 18,664

^[1],[5]

$ 0.22

$ 0.44

$ 0.36

Diluted earnings per share (in USD per share)

^[1],[5]

$ 0.21

$ 0.40

$ 0.32

Shares used in computed basic earnings per share (in shares)

^[1],[6]

65,748,896

56,331,018

34,774,983

Shares used in computed diluted earnings per share (in shares)

^[1],[6]

69,112,733

61,569,195

41,759,338

^[1],[7]

$ 42,538

$ 25,505

$ 12,923

Scenario, Previously Reported [Member]

^[1]

$ (2,718)

(265)

7,235

Deferred tax assets, non-current

21,091

Retained earnings (accumulated deficit)

237,769

(7,788)

Cost of maintenance revenue

7,613

5,288

Cost of services revenue

123,210

85,360

66,346

50,462

53,301

38,254

32,414

28,336

17,212

23,179

1,829

7,979

Basic earnings per share (in USD per share)

$ 15,383

$ 15,200

$ 0.27

$ 0.29

Diluted earnings per share (in USD per share)

$ 0.25

Shares used in computed basic earnings per share (in shares)

56,331,018

34,774,983

Shares used in computed diluted earnings per share (in shares)

61,943,087

41,509,185

$ 38,399

$ 18,258

Restatement Adjustment [Member]

(3,901)

5,362

Deferred tax assets, non-current

(6,597)

Retained earnings (accumulated deficit)

(22,618)

16,037

Cost of maintenance revenue

(397)

(95)

Cost of services revenue

(5,695)

(1,310)

(3,355)

(1,406)

(2,353)

(1,473)

(1,094)

(1,051)

12,911

5,337

3,636

1,873

Basic earnings per share (in USD per share)

$ 9,275

$ 3,464

$ 0.17

$ 0.07

Diluted earnings per share (in USD per share)

$ 0.15

$ 0.07

Shares used in computed basic earnings per share (in shares)

Shares used in computed diluted earnings per share (in shares)

(373,892)

250,153

$ (12,894)

$ (5,335)

$ 3,636

$ 1,873

[1]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[2]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[3]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[4]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[5]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[6]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[7]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements

Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 619,983	$ 183,764
Unrealized Gains	164	59
Unrealized Losses	(215)	(35)
Estimated Fair Value	619,932	183,788
U.S. agency securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	94,048	37,087
Unrealized Gains	30	21
Unrealized Losses	(21)	(4)
Estimated Fair Value	94,057	37,104
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	1,363	4,522
Unrealized Gains	0	0
Unrealized Losses	(2)	(1)
Estimated Fair Value	1,361	4,521
Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	132,442	35,777
Unrealized Gains	14	11
Unrealized Losses	(4)	(1)
Estimated Fair Value	132,452	35,787
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	297,731	63,281
Unrealized Gains	104	23
Unrealized Losses	(182)	(14)
Estimated Fair Value	297,653	63,290
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	17,991
Unrealized Gains	3
Unrealized Losses	(3)
Estimated Fair Value	17,991
Foreign government bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	2,755	776
Unrealized Gains	0	0
Unrealized Losses	(1)	(1)
Estimated Fair Value	2,754	775
Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	6,709
Unrealized Gains	0
Unrealized Losses	(1)
Estimated Fair Value	6,708
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	53,959	33,216
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	53,959	33,216
Municipal debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	12,985	9,105
Unrealized Gains	13	4
Unrealized Losses	(1)	(14)
Estimated Fair Value	$ 12,997	$ 9,095

Fair Value of Financial Instruments (Details 2) $ in Thousands	12 Months Ended
	Jul. 31, 2014 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	$ 254,414
Less than 12, Months, Gross Unrealized Losses	(214)
12 Months or Greater, Fair Value	2,200
12 Months or Greater, Gross Unrealized Losses	(1)
Total, Fair Value	256,614
Total, Gross Unrealized Losses	(215)
U.S. government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	46,980
Less than 12, Months, Gross Unrealized Losses	(21)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	46,980
Total, Gross Unrealized Losses	(21)
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	1,361
Less than 12, Months, Gross Unrealized Losses	(2)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	1,361
Total, Gross Unrealized Losses	(2)
Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	14,389
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	14,389
Total, Gross Unrealized Losses	(4)
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	176,742
Less than 12, Months, Gross Unrealized Losses	(182)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	176,742
Total, Gross Unrealized Losses	(182)
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	9,489
Less than 12, Months, Gross Unrealized Losses	(3)
12 Months or Greater, Fair Value	0
12 Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	9,489
Total, Gross Unrealized Losses	(3)
Foreign government bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	2,754
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	2,754
Total, Gross Unrealized Losses	(1)
Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less than 12 Months, Fair Value	2,699
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	2,699
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	0
Less than 12, Months, Gross Unrealized Losses	0
12 Months or Greater, Fair Value	2,200
12 Months or Greater, Gross Unrealized Losses	(1)
Total, Fair Value	2,200
Total, Gross Unrealized Losses	$ (1)

Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands	Jul. 31, 2014	Jul. 31, 2013
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2015	$ 416,483
Expected maturities for the year ending July 31, 2016	203,449
Estimated Fair Value	619,932	$ 183,788
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, 2015	29,062
Expected maturities for the year ending July 31, 2016	64,995
Estimated Fair Value	94,057	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, 2015	1,361
Expected maturities for the year ending July 31, 2016	0
Estimated Fair Value	1,361	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, 2015	132,452
Expected maturities for the year ending July 31, 2016	0
Estimated Fair Value	132,452	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, 2015	172,648
Expected maturities for the year ending July 31, 2016	125,005
Estimated Fair Value	297,653	63,290
US Treasury Securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2015	9,995
Expected maturities for the year ending July 31, 2016	7,996
Estimated Fair Value	17,991
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, 2015	0
Expected maturities for the year ending July 31, 2016	2,754
Estimated Fair Value	2,754	775
Certificates of Deposit [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Expected maturities for the year ending July 31, 2015	4,009
Expected maturities for the year ending July 31, 2016	2,699
Estimated Fair Value	6,708
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, 2015	53,959
Expected maturities for the year ending July 31, 2016	0
Estimated Fair Value	53,959	33,216
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, 2015	12,997
Expected maturities for the year ending July 31, 2016	0
Estimated Fair Value	$ 12,997	$ 9,095

Fair Value of Financial Instruments (Details 4) - USD ($) $ in Thousands	Jul. 31, 2014	Jul. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 619,932	$ 183,788
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	53,959	33,216
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	565,973	150,572
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	29,062	9,097
Long-term investments	64,995	28,007
Total assets	94,057	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	0
Long-term investments	0	0
U.S. agency securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	29,062	9,097
Long-term investments	64,995	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	0
Long-term investments	0	0
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	1,361	2,421
Long-term investments		2,100
Total assets	1,361	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	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	1,361	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	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	66,293	20,597
Short-term investments	66,159	15,190
Total assets	132,452	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	0
Short-term investments	0	0
Commercial paper [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	66,293	20,597
Short-term investments	66,159	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	0
Short-term investments	0	0
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		2,003
Short-term investments	172,648	47,572
Long-term investments	125,005	13,715
Total assets	297,653	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	0
Long-term investments	0	0
Corporate bonds [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		2,003
Short-term investments	172,648	47,572
Long-term investments	125,005	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	0
Long-term investments	0	0
Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	4,009
Long-term investments	2,699
Total assets	6,708
Certificates of Deposit [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Long-term investments	0
Certificates of Deposit [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	4,009
Long-term investments	2,699
Certificates of Deposit [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
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	53,959	33,216
Total assets	53,959	33,216
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	53,959	33,216
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
Foreign government bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		775
Long-term investments	2,754
Total assets	2,754	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
Long-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
Long-term investments	2,754
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
Long-term investments	0
Municipal debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	12,997	1,877
Long-term investments		7,218
Total assets	12,997	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	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	12,997	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	0
Long-term investments		$ 0
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	9,995
Long-term investments	7,996
Total assets	17,991
US Treasury Securities [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Long-term investments	0
US Treasury Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	9,995
Long-term investments	7,996
US Treasury Securities [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Long-term investments	$ 0

Fair Value Disclosures (Details Textual)	Jul. 31, 2014 investment
Fair Value Disclosures [Abstract]
Investments in an unrealized loss positions (in investments)	93

Balance Sheet Components (Details 1) - USD ($) $ in Thousands	Jul. 31, 2014	Jul. 31, 2013
Property and equipment
Computer hardware	$ 11,882	$ 8,820
Software	4,605	4,460
Furniture and fixtures	2,732	2,666
Leasehold improvements	7,069	6,536
Total property and equipment	26,288	22,482
Less accumulated depreciation	(13,681)	(9,568)
Property and equipment, net	$ 12,607	$ 12,914

Balance Sheet Components (Details 2) $ in Thousands	12 Months Ended
Balance Sheet Components (Details 2) $ in Thousands	Jul. 31, 2014 USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning of Period	$ 9,048
Changes in carrying value	157
Goodwill, End of Period	$ 9,205

Balance Sheet Components (Details 3) - USD ($) $ in Thousands	Jul. 31, 2014	Jul. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Total	$ 5,439
Acquired Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	7,200	$ 7,200
Accumulated amortization	(1,761)	(321)
Total	$ 5,439	$ 6,879

Balance Sheet Components (Details 4) $ in Thousands	Jul. 31, 2014 USD ($)
Balance Sheet Related Disclosures [Abstract]
2015	$ 1,440
2016	1,440
2017	1,440
2018	1,119
Total	$ 5,439

Balance Sheet Components (Details 5) - USD ($) $ in Thousands	Jul. 31, 2014	Jul. 31, 2013
Accrued employee compensation
Accrued bonuses	$ 19,213	$ 13,072
Accrued commission	3,593	2,043
Accrued vacation	8,100	7,335
Payroll accruals	4,006	3,852
Total	$ 34,912	$ 26,302

Balance Sheet Components (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ (1,574)	$ (496)
Other comprehensive income (loss) before reclassification adjustments:	239	(1,078)
Amounts reclassified from accumulated other comprehensive income (loss) to earnings	(39)
Tax effect	7	0
Balance at end of period	(1,367)	(1,574)
Accumulated Translation Adjustment [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(1,598)	(496)
Other comprehensive income (loss) before reclassification adjustments:	288	(1,102)
Amounts reclassified from accumulated other comprehensive income (loss) to earnings	0
Tax effect	0	0
Balance at end of period	(1,310)	(1,598)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	24	0
Other comprehensive income (loss) before reclassification adjustments:	(49)	24
Amounts reclassified from accumulated other comprehensive income (loss) to earnings	(39)
Tax effect	7	0
Balance at end of period	$ (57)	$ 24

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Balance Sheet Components (Details Textual) - USD ($)	12 Months Ended
Balance Sheet Components (Details Textual) - USD ($)	Jul. 31, 2014	Jul. 31, 2013	Jul. 31, 2012
Balance Sheet Components (Additional Textual) [Abstract]
Property and equipment pledged as collateral	$ 0	$ 0
Depreciation expense	5,300,000	4,500,000	$ 2,600,000
Amortization of intangible assets	$ 1,400,000	$ 300,000	$ 300,000

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

12 Months Ended

Jul. 31, 2014

Jul. 31, 2013

Jul. 31, 2012

Numerator:

Non-cumulative dividends to preferred stockholders

^[1]

$ 14,721

$ 24,658

$ 18,664

(1,574)

Undistributed Earnings (Loss) Allocated to Participating Securities, Basic

(4,444)

Net income, basic

14,721

24,658

12,646

Adjustments to net income for dilutive options and restricted stock options

574

Net income, diluted

$ 14,721

$ 24,658

$ 13,220

Net income per share:

Basic (in USD per share)

^[1],[2]

$ 0.22

$ 0.44

$ 0.36

Diluted (in USD per share)

^[1],[2]

$ 0.21

$ 0.40

$ 0.32

Weighted average shares used in computing net income per share:

Basic (in shares)

^[1],[3]

65,748,896

56,331,018

34,774,983

Weighted average effect of diluted stock options (in shares)

^[3]

1,896,766

3,392,797

5,082,507

Weighted average effect of dilutive restricted stock units (in shares)

^[3]

1,467,071

1,845,380

1,871,982

Weighted average effect of dilutive stock warrants (in shares)

^[3],[4]

29,866

Diluted (in shares)

^[1],[3]

69,112,733

61,569,195

41,759,338

[1]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[2]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[3]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.
[4]	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

Jul. 31, 2014

Jul. 31, 2013

Jul. 31, 2012

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)

^[1]

206,136

320,325

5,037

Restricted stock units [Member]

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Outstanding shares of common stock equivalents (in shares)

^[1]

76,840

64,397

136,905

[1]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements

Commitments and Contingencies (Details)
$ in Thousands

Jul. 31, 2014

USD ($)

Lease Obligations

$ 5,786

5,835

5,710

5,663

5,102

28,096

Royalty Obligations

2015

398

^[1]

2016

365

^[1]

2017

212

^[1]

2018

110

^[1]

2019

^[1]

Total

1,085

^[1]

Purchase Commitments

2015

6,141

^[2]

2016

1,589

^[2]

2017

276

^[2]

2018

^[2]

2019

^[2]

Total

8,006

^[2]

Total

12,325

7,789

6,198

5,773

5,102

$ 37,187

[1]	Royalty obligations primarily represent our obligations under our non-cancellable 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-cancellable 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 ($) ft²	Jul. 31, 2014 USD ($)	Jul. 31, 2013 USD ($) claim letter_of_credit	Jul. 31, 2012 USD ($)	Aug. 01, 2014 USD ($)	Jul. 31, 2014 PLN (zł) claim letter_of_credit	Jul. 31, 2014 USD ($) claim letter_of_credit
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							$ 3,200,000
Lease expense for all worldwide facilities and equipment		$ 5,800,000	$ 5,300,000	$ 4,000,000
Sublease Income				$ 1,200,000
Number of Unsecured Credit Facilities Outstanding (in letters) \| letter_of_credit			3			2	2
Unsecured letter of credit \| zł						zł 10.0
Line of Credit Facility, Amount Outstanding			$ 0				$ 0
Outstanding claims \| claim			0			0	0
Letter of Credit [Member]
Commitments and contingencies (Textual) [Abstract]
Line of Credit Facility Maximum Borrowing Capacity	$ 1,200,000
Subsequent Event [Member] \| Letter of Credit [Member]
Commitments and contingencies (Textual) [Abstract]
Line of Credit Facility Maximum Borrowing Capacity					$ 800,000

Stockholders' Equity and Stock-based Compensation (Details 1) - USD ($)
$ in Thousands

12 Months Ended

Jul. 31, 2014

Jul. 31, 2013

Jul. 31, 2012

Tax benefit from stock-based compensation

^[1],[2]

$ 42,538

$ 25,505

$ 12,923

^[1]

15,905

9,902

5,061

Total stock-based compensation expense, net of tax effect

^[1]

26,633

15,603

7,862

Cost of License Revenues [Member]

Cost of maintenance revenues [Member]

^[1]

184

Cost of services revenues [Member]

^[1]

797

830

288

Research and development [Member]

^[1]

11,929

6,910

2,461

Sales and marketing [Member]

^[1]

9,008

5,843

2,385

General and administrative [Member]

^[1]

10,744

3,672

1,496

Number of Stock Options Outstanding (in shares)

^[1]

$ 9,876

$ 8,250

$ 6,293

[1]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements
[2]	See Note 2 “Change in Accounting Policy - Stock-Based Compensation” of Notes to Consolidated Financial Statements.

Stockholders' Equity and Stock-based Compensation (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized Expense	$ 89,524
Restricted stock units RSUs [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share Based Compensation Expense, Performance Based Awards	1,574	$ 1,745
Unrecognized Expense	$ 83,505
Average Expected Recognition Period (in years)	2 years 2 months 3 days
Stock options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized Expense	$ 6,019
Average Expected Recognition Period (in years)	2 years

Stockholders' Equity and Stock-based Compensation (Details 3) - Restricted stock units RSUs [Member] - $ / shares	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013	Jul. 31, 2012
Number of RSUs Outstanding (in shares)
Balance at beginning of period	4,027,601
Granted	1,667,433
Released	(2,007,423)
Canceled	(303,390)
Balance at end of period	3,384,221	4,027,601
Weighted Average Grant Date Fair Value (in dollars per share)
Balance at beginning of period	$ 19.27
Granted	43.87	$ 33.68	$ 13.65
Released	18.59
Canceled	31.48
Balance at end of period	$ 30.70	$ 19.27

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

12 Months Ended

Jul. 31, 2014

Jul. 31, 2013

Balance at beginning of period

3,763,228

Granted

225,930

Exercised

(1,580,344)

Canceled

(8,561)

Balance at end of period

2,400,253

3,763,228

Exercisable as of July 31, 2014

2,040,125

Weighted Average Exercise Price (in dollars per share)

Balance at beginning of period

$ 6.74

Granted

46.63

Exercised

5.53

Canceled

21.75

Balance at end of period

11.24

$ 6.74

Exercisable as of July 31, 2013

$ 6.32

Weighted Average Remaining Contractual Life (in years)

Weighted average remaining contractual life

5 years 5 months 29 days

5 years 8 months 12 days

Vested and expected to vest as of July 31, 2014

5 years 5 months 10 days

Exercisable as of July 31, 2014

5 years 5 months 29 days

Aggregate Intrinsic Value

Aggregate Intrinsic Value

^[1]

$ 71,640

$ 139,315

Vested and expected to vest as of July 31, 2014

^[1]

71,503

Exercisable as of July 31, 2014

^[1]

$ 70,039

[1]	Aggregate intrinsic value represents the difference between the exercise price of the option and the Company’s closing stock price of $40.50 and $43.76 on July 31, 2014, and July 31, 2013, respectively.

Stockholders' Equity and Stock-based Compensation (Details 5) - $ / shares	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	2,400,253	3,763,228
Weighted average remaining contractual life	5 years 5 months 29 days	5 years 8 months 12 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 11.24	$ 6.74
Options Exercisable, Number of Options Exercisable (in shares)	2,040,125
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 6.32
$0.16—1.00
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	99,010
Weighted average remaining contractual life	1 year 4 months 14 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 0.68
Options Exercisable, Number of Options Exercisable (in shares)	99,010
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 0.68
1.25—2.56
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	71,150
Weighted average remaining contractual life	2 years 1 month 3 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 2.17
Options Exercisable, Number of Options Exercisable (in shares)	71,150
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 2.17
2.74
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	423,312
Weighted average remaining contractual life	2 years 11 months 28 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 2.74
Options Exercisable, Number of Options Exercisable (in shares)	423,312
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 2.74
3.50
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	124,860
Weighted average remaining contractual life	3 years 8 months 10 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 3.50
Options Exercisable, Number of Options Exercisable (in shares)	124,860
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 3.50
3.73
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	351,886
Weighted average remaining contractual life	4 years 8 months 1 day
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 3.73
Options Exercisable, Number of Options Exercisable (in shares)	351,886
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 3.73
3.92
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	338,523
Weighted average remaining contractual life	5 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)	338,523
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 3.92
4.50—7.50
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	309,954
Weighted average remaining contractual life	6 years 9 months 28 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 7.14
Options Exercisable, Number of Options Exercisable (in shares)	304,954
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 7.13
8.65—11.00
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	210,337
Weighted average remaining contractual life	7 years 1 month 21 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 8.78
Options Exercisable, Number of Options Exercisable (in shares)	208,878
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 8.78
29.03—32.25
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	221,476
Weighted average remaining contractual life	8 years 1 month 13 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 31.99
Options Exercisable, Number of Options Exercisable (in shares)	67,905
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 31.41
35.00—53.15
Shares Authorized Under Stock Option Plans Exercise Price Range End of Period
Options Outstanding, Number of Options Outstanding (in shares)	249,745
Weighted average remaining contractual life	9 years 1 month 22 days
Options Outstanding, Exercise Price per Share (in dollars per share)	$ 45.53
Options Exercisable, Number of Options Exercisable (in shares)	49,647
Options Exercisable, Exercise Price per Share (in dollars per share)	$ 46.07

Stockholders' Equity and Stock-based Compensation (Details 6)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013	Jul. 31, 2012
Summary of assumptions for fair value of employee stock option estimates
Risk-free interest rate, minimum (as a percent)	1.50%	0.60%	1.20%
Risk-free interest rate, maximum (as a percent)	2.00%	1.20%	1.50%
Expected volatility, minimum (as a percent)	41.30%	45.10%	44.10%
Expected volatility, maximum (as a percent)	46.20%	48.70%	46.40%
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	5 years 1 month 13 days	5 years 3 months 18 days
Maximum [Member]
Summary of assumptions for fair value of employee stock option estimates
Expected life (in years)	6 years 22 days	6 years 22 days	6 years 3 months 18 days

Stockholders' Equity and Stock-based Compensation (Details 7) - shares	Jul. 31, 2014	Jul. 31, 2013
Common Stock Reserved for Issuance (in shares)
Exercise of stock options to purchase common stock	2,400,253	3,763,228
Issuances of shares available under stock plans	11,703,962	9,194,058
Common Stock, Capital Shares Reserved for Future Issuance	17,488,436	16,984,887
Stock options [Member]
Common Stock Reserved for Issuance (in shares)
Exercise of stock options to purchase common stock	2,400,253	3,763,228
Restricted stock units RSUs [Member]
Common Stock Reserved for Issuance (in shares)
Vesting of restricted stock units	3,384,221	4,027,601

Stockholders' Equity and Stock-based Compensation (Details Textual) - USD ($)			1 Months Ended		12 Months Ended
	Jan. 30, 2012	Mar. 09, 2011	Jan. 31, 2012	Jul. 31, 2011	Jul. 31, 2014	Jul. 31, 2013	Jul. 31, 2012	Sep. 14, 2011
Class of Stock [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options						$ 200,000
Stock-based compensation expense related to change in estimated forfeiture rate						$ 900,000
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)					$ 40.50	$ 43.76
Exercises in period, Total intrinsic value					$ 65,300,000	$ 86,000,000	$ 31,200,000
Weighted average grant date fair value of options granted (in dollars per share)					$ 46.63	$ 14.06	$ 4.51
Fair value assumption dividend amount					$ 0
Conversion of preferred stock to common stock (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)					$ 0.0001	$ 0.1000
Preferred stock, shares issued (in shares)					0	0
Preferred stock, shares outstanding (in shares)					0	0
Common stock, shares authorized (in shares)					500,000,000	500,000,000
Common Stock, Shares, Issued (in shares)					69,082,261	57,909,277
Common stock, par value (in dollars per share)					$ 0.0001	$ 0.0001
Common stock, shares outstanding (in shares)					69,082,261	57,909,277
Restricted stock units RSUs [Member]
Class of Stock [Line Items]
Incremental cost of modification of award						$ 1,000,000
Share Based Compensation Expense, Performance Based Awards					$ 1,574,000	1,745,000
Share-based compensation related to successful IPO						$ 1,200,000
Estimated grant date fair value of RSUs options (in dollars per share)					$ 43.87	$ 33.68	$ 13.65
Equity instruments other than options released fair value					$ 91,300,000	$ 56,200,000	$ 41,200,000
Stock Plan 2011 [Member]
Class of Stock [Line Items]
Shares reserved for issuance under stock compensation plan (in shares)					11,703,962			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

Jul. 31, 2014

Jul. 31, 2013

Jul. 31, 2012

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

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

^[1],[2]

$ 19,946

$ 30,123

$ 28,516

Domestic [Member]

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

11,956

25,725

22,370

International [Member]