0001713683-20-000037 | 10-Q | XBRL Viewer

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Cover Page - shares	6 Months Ended
Cover Page - shares	Jan. 31, 2020	Feb. 28, 2020
Entity Addresses [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 31, 2020
Document Transition Report	false
Entity File Number	001-38413
Entity Registrant Name	ZSCALER, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-1173892
Entity Address, Address Line One	120 Holger Way
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134
City Area Code	408
Local Phone Number	533-0288
Title of 12(b) Security	Common Stock, $0.001 Par Value
Trading Symbol	ZS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Shares Outstanding		129,351,577
Entity Central Index Key	0001713683
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Former Address
Entity Addresses [Line Items]
Entity Address, Address Line One	110 Rose Orchard Way
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Current assets:
Cash and cash equivalents	$ 76,534	$ 78,484
Short-term investments	308,380	286,162
Accounts receivable, net	94,784	93,341
Deferred contract acquisition costs	23,527	21,219
Prepaid expenses and other current assets	19,917	16,880
Total current assets	523,142	496,086
Property and equipment, net	52,355	41,046
Operating lease right-of-use assets	32,142
Deferred contract acquisition costs, noncurrent	50,523	48,566
Acquired intangible assets, net	7,287	8,708
Goodwill	7,479	7,479
Other noncurrent assets	3,497	2,277
Total assets	676,425	604,162
Current liabilities:
Accounts payable	2,675	6,208
Accrued expenses and other current liabilities	13,606	12,810
Accrued compensation	25,019	21,544
Deferred revenue	251,221	221,387
Operating lease liabilities	11,142
Total current liabilities	303,663	261,949
Deferred revenue, noncurrent	28,801	29,815
Operating lease liabilities, noncurrent	23,300
Other noncurrent liabilities	1,497	3,840
Total liabilities	357,261	295,604
Commitments and contingencies (Note 8)
Stockholders’ Equity
Common stock; $0.001 par value; 1,000,000 shares authorized as of January 31, 2020 and July 31, 2019; 129,266 and 127,253 shares issued and outstanding as of January 31, 2020 and July 31, 2019, respectively	129	127
Additional paid-in capital	589,229	532,618
Accumulated other comprehensive income	491	268
Accumulated deficit	(270,685)	(224,455)
Total stockholders’ equity	319,164	308,558
Total liabilities and stockholders’ equity	$ 676,425	$ 604,162

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jan. 31, 2020	Jul. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, shares issued (in shares)	129,266	127,253
Common stock, shares outstanding (in shares)	129,266	127,253

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Income Statement [Abstract]
Revenue	$ 101,268	$ 74,302	$ 194,858	$ 137,600
Cost of revenue	20,238	15,271	39,796	27,370
Gross profit	81,030	59,031	155,062	110,230
Operating expenses:
Sales and marketing	61,621	38,756	121,032	75,301
Research and development	20,706	15,071	40,977	28,257
General and administrative	28,983	10,386	41,608	20,517
Total operating expenses	111,310	64,213	203,617	124,075
Loss from operations	(30,280)	(5,182)	(48,555)	(13,845)
Interest income	1,855	1,924	3,877	3,514
Other income (expense), net	(13)	250	(42)	62
Loss before income taxes	(28,438)	(3,008)	(44,720)	(10,269)
Provision for income taxes	716	547	1,510	874
Net loss	$ (29,154)	$ (3,555)	$ (46,230)	$ (11,143)
Net loss per share, basic and diluted (in dollars per share)	$ (0.23)	$ (0.03)	$ (0.36)	$ (0.09)
Weighted-average shares used in computing net loss per share, basic and diluted (in shares)	128,408	122,741	127,978	121,664

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (29,154)	$ (3,555)	$ (46,230)	$ (11,143)
Other comprehensive income, net of tax:
Unrealized net gains on available-for-sale securities	55	258	223	65
Other comprehensive income	55	258	223	65
Comprehensive loss	$ (29,099)	$ (3,297)	$ (46,007)	$ (11,078)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Notes Receivable From Stockholders	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Common stock, beginning balance (in shares) at Jul. 31, 2018		119,764,000
Beginning balance at Jul. 31, 2018	$ 240,236	$ 119	$ 438,392	$ (2,051)	$ (124)	$ (196,100)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		3,511,000
Issuance of common stock upon exercise of stock options	15,493	$ 4	15,489
Issuance of common stock under the employee stock purchase plan (in shares)		627,000
Issuance of common stock in connection with employee stock purchase plan	8,691	$ 1	8,690
Vesting of restricted stock units (in shares)		3,000
Vesting of restricted stock units	0
Vesting of early exercised common stock options	567		567
Stock-based compensation	20,813		20,813
Unrealized net gains on available-for-sale securities	65				65
Net loss	(11,143)					(11,143)
Adjustment to initial public offering costs	300		300
Repurchases of unvested common stock (in shares)		(8,000)
Repurchases of unvested common stock	0
Repayments of principal amount on notes receivable from stockholders	1,905			1,905
Accrued interest on notes receivable from stockholders, net of repayments	146			146
Common stock, ending balance (in shares) at Jan. 31, 2019		123,897,000
Ending balance at Jan. 31, 2019	277,073	$ 124	483,951	0	(59)	(206,943)
Common stock, beginning balance (in shares) at Oct. 31, 2018		122,106,000
Beginning balance at Oct. 31, 2018	252,178	$ 122	455,761		(317)	(203,388)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		1,161,000
Issuance of common stock upon exercise of stock options	5,697	$ 1	5,696
Issuance of common stock under the employee stock purchase plan (in shares)		627,000
Issuance of common stock in connection with employee stock purchase plan	8,691	$ 1	8,690
Vesting of restricted stock units (in shares)		3,000
Vesting of restricted stock units	0
Vesting of early exercised common stock options	277		277
Stock-based compensation	13,227		13,227
Unrealized net gains on available-for-sale securities	258				258
Net loss	(3,555)					(3,555)
Adjustment to initial public offering costs	300		300
Common stock, ending balance (in shares) at Jan. 31, 2019		123,897,000
Ending balance at Jan. 31, 2019	$ 277,073	$ 124	483,951	0	(59)	(206,943)
Common stock, beginning balance (in shares) at Jul. 31, 2019	127,253	127,253,000
Beginning balance at Jul. 31, 2019	$ 308,558	$ 127	532,618	0	268	(224,455)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	1,220,000	1,220,000
Issuance of common stock upon exercise of stock options	$ 6,758	$ 2	6,756
Issuance of common stock under the employee stock purchase plan (in shares)		284,000
Issuance of common stock in connection with employee stock purchase plan	5,334		5,334
Vesting of restricted stock units (in shares)		509,000
Vesting of restricted stock units	0
Vesting of early exercised common stock options	262		262
Stock-based compensation	44,259		44,259
Unrealized net gains on available-for-sale securities	223				223
Net loss	$ (46,230)					(46,230)
Common stock, ending balance (in shares) at Jan. 31, 2020	129,266	129,266,000
Ending balance at Jan. 31, 2020	$ 319,164	$ 129	589,229	0	491	(270,685)
Common stock, beginning balance (in shares) at Oct. 31, 2019		127,926,000
Beginning balance at Oct. 31, 2019	314,052	$ 128	555,019		436	(241,531)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		675,000
Issuance of common stock upon exercise of stock options	3,699	$ 1	3,698
Issuance of common stock under the employee stock purchase plan (in shares)		284,000
Issuance of common stock in connection with employee stock purchase plan	5,334		5,334
Vesting of restricted stock units (in shares)		381,000
Vesting of restricted stock units	0
Vesting of early exercised common stock options	131		131
Stock-based compensation	25,047		25,047
Unrealized net gains on available-for-sale securities	55				55
Net loss	$ (29,154)					(29,154)
Common stock, ending balance (in shares) at Jan. 31, 2020	129,266	129,266,000
Ending balance at Jan. 31, 2020	$ 319,164	$ 129	$ 589,229	$ 0	$ 491	$ (270,685)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
Cash Flows From Operating Activities
Net loss	$ (46,230)	$ (11,143)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	7,508	4,662
Impairment of assets	316	0
Amortization expense of acquired intangible assets	1,421	239
Amortization of deferred contract acquisition costs	11,425	8,781
Noncash operating lease costs	6,215
Stock-based compensation expense	42,242	20,813
Accretion of purchased discounts, net of amortization of investment premiums	(442)	(1,125)
Other	248	202
Changes in operating assets and liabilities:
Accounts receivable	(1,432)	(13,859)
Deferred contract acquisition costs	(15,690)	(13,472)
Prepaid expenses, other current and noncurrent assets	(3,981)	(2,778)
Accounts payable	(603)	(786)
Accrued expenses, other current and noncurrent liabilities	(1,243)	1,042
Accrued compensation	3,475	(7,852)
Deferred revenue	28,820	41,997
Operating lease liabilities	(5,189)
Net cash provided by operating activities	26,860	26,721
Cash Flows From Investing Activities
Purchases of property, equipment and other assets	(15,099)	(8,607)
Capitalized internal-use software	(4,273)	(903)
Acquired intangible assets	0	(1,480)
Purchases of short-term investments	(147,543)	(179,896)
Proceeds from maturities of short-term investments	126,013	71,603
Net cash used in investing activities	(40,902)	(119,283)
Cash Flows From Financing Activities
Payments of offering costs related to initial public offering	0	(1,797)
Proceeds from issuance of common stock upon exercise of stock options	6,758	15,493
Proceeds from issuance of common stock under the employee stock purchase plan	5,334	8,691
Repurchases of unvested common stock	0	(22)
Repayments of notes receivable from stockholders	0	1,905
Net cash provided by financing activities	12,092	24,270
Net decrease in cash, cash equivalents and restricted cash	(1,950)	(68,292)
Cash, cash equivalents and restricted cash at beginning of period	78,484	136,147
Cash, cash equivalents and restricted cash at end of period	76,534	67,855
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes, net of tax refunds	1,473	1,121
Noncash activities
Net change in purchased equipment included in accounts payable and accrued expenses	(1,785)	1,544
Operating lease right-of-use assets obtained in exchange for operating lease obligations, net of terminations	20,905
Vesting of early exercised common stock options	262	567
Net change in deferred offering costs accrued	0	(2,097)
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets:
Total cash, cash equivalents and restricted cash	$ 76,534	$ 67,855

Business and Summary of Significant Accounting Policies	6 Months Ended
Business and Summary of Significant Accounting Policies	Jan. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Summary of Significant Accounting Policies	Business and Summary of Significant Accounting Policies Description of the Business Zscaler, Inc. ("Zscaler," the "Company," "we," "us," or "our") is a cloud security company that developed a platform incorporating core security functionalities needed to enable users to safely utilize authorized applications and services based on an organization’s policies. Our solution is a purpose-built, multi-tenant, distributed cloud security platform that secures access for users and devices to applications and services, regardless of location. We deliver our solutions using a software-as-a-service ("SaaS") business model and sell subscriptions to customers to access our cloud platform, together with related support services. We were incorporated in Delaware in September 2007 and conduct business worldwide, with presence in North America, Europe and Asia. Our headquarters are in San Jose, California. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and applicable regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting, and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements and accompanying footnotes should be read in conjunction with the Company's audited consolidated financial statements and related notes in its Annual Report on Form 10-K for the fiscal year ended July 31, 2019 (the "Fiscal 2019 Form 10-K"), as filed with the SEC on September 18, 2019. JOBS Act Extended Transition Period As a result of the market value of our common stock held by our non-affiliates as of January 31, 2019, we ceased to be an "emerging growth company" ("EGC"), as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), with our transition to a large accelerated filer status as of July 31, 2019. As an EGC, we elected not to avail ourselves of the extended transition periods available for complying with new or revised accounting pronouncements applicable to public companies that are not emerging growth companies. Accordingly, the transition to a large accelerated filer did not have an impact to our consolidated financial statements. Interim Unaudited Condensed Consolidated Financial Statements The accompanying condensed consolidated balance sheet as of July 31, 2019 was derived from the audited financial statements as of that date. The accompanying interim condensed consolidated financial statements, including the consolidated balance sheets as of January 31, 2020, the consolidated statements of operations for the three and six months ended January 31, 2020 and 2019, the consolidated statements of comprehensive loss for the three and six months ended January 31, 2020 and 2019, the consolidated statements of stockholders’ equity for the three and six months ended January 31, 2020 and 2019 and the consolidated statements of cash flows for the six months ended January 31, 2020 and 2019 are unaudited. The related financial data and the other financial information disclosed in the accompanying notes to these condensed consolidated financial statements are also unaudited. These interim unaudited condensed consolidated financial statements have been prepared on a basis consistent with our annual consolidated financial statements and, in our opinion, include all normal recurring adjustments necessary to state fairly our quarterly results. The results of operations for the three and six months ended January 31, 2020 are not necessarily indicative of the results to be expected for our fiscal year ending July 31, 2020 or for any other future fiscal year or interim period. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of revenue recognition, deferred revenue, deferred contract acquisition costs, valuation of acquired intangible assets, the period of benefit generated from our deferred contract acquisition costs, allowance for doubtful accounts, valuation of common stock options and stock-based awards, useful lives of property and equipment, useful lives of acquired intangible assets, loss contingencies related to litigation, valuation of deferred tax assets and the discount rate used for operating leases. Management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ significantly from these estimates, and such differences may be material to the condensed consolidated financial statements. Fiscal Year Our fiscal year ends on July 31. References to fiscal 2020, for example, refer to our fiscal year ending July 31, 2020. Significant Accounting Policies Our significant accounting policies are described in the Fiscal 2019 Form 10-K. There have been no significant changes to these policies that have had a material impact on our condensed consolidated financial statements and related notes for the three and six months ended January 31, 2020 other than for the adoption of new accounting guidance related to leases effective August 1, 2019 further described below. Operating Leases We enter into operating lease arrangements for real estate assets related to office space and co-location assets related to space and racks at data center facilities. We determine if an arrangement contains a lease at its inception by assessing whether there is an identified asset and whether the arrangement conveys the right to control the use of the identified asset in exchange for consideration. Operating leases related balances are included in "operating lease right-of-use assets," "operating lease liabilities," and "operating lease liabilities, noncurrent" in our condensed consolidated balance sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make payments arising from the lease. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives, such as tenant improvement allowances. Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-to-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. As the implicit rate of our leases is not determinable, we use an incremental borrowing rate ("IBR") based on the information available at the lease commencement date in determining the present value of lease payments. The lease expense is recognized on a straight-line basis over the lease term. We generally use the base, non-cancelable lease term when recognizing the right-of-use assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. We account for lease components and non-lease components as a single lease component. Leases with a term of twelve months or less are not recognized on the consolidated balance sheets. We recognize lease expense for these leases on a straight-line basis over the term of the lease. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), as amended, which requires recognition of lease assets and liabilities for leases with terms of more than 12 months. This standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We adopted this standard effective August 1, 2019 using the transitional provision which allows for the adoption of Topic 842 to be applied prospectively at the beginning of the fiscal year of adoption. As such, the condensed consolidated balance sheets for prior periods are not comparable to our fiscal 2020 periods. The adoption of this new standard resulted in the recognition of operating lease right-of-use assets of $16.9 million and operating lease liabilities of $18.0 million. We have elected the package of practical expedients permitted under the transition guidance, which allows us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our initial direct costs for any leases that existed prior to adoption of the new standard. We have also elected to combine lease and non-lease components for real estate and co-location arrangements. In addition, we elected not to recognize lease liabilities and related right-of-use assets for leases that, at the lease commencement date, have a lease term of 12 months or less. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) ("ASU 2019-12"): Simplifying the Accounting for Income Taxes. The new standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. For public business entities, it is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. We early adopted this standard as of November 1, 2019, and it did not have a material impact to our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. For public business entities, it is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of this standard on our consolidated financial statements.

Revenue Recognition

6 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Disaggregation of Revenue

Subscription and support revenue is recognized over time and accounted for approximately 98% and 97% of our revenue for the three months ended January 31, 2020 and 2019, respectively, and approximately 98% of our revenue for the six months ended January 31, 2020 and 2019.

The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform:


	Three Months Ended January 31,														Six Months Ended January 31,
	2020						2019						2020				2019
	Amount		% Revenue		Amount		% Revenue		Amount		% Revenue		Amount		% Revenue
	(in thousands, except per percentage data)
United States	$	49,629	49	%	$	37,626	51	%	$	95,574	49	%	$	67,433	49	%
Europe, Middle East and Africa ^(*)	41,002		40	%	29,552		40	%	79,291		41	%	56,946		41	%
Asia Pacific	8,828		9	%	5,674		7	%	16,647		8	%	10,463		8	%
Other	1,809		2	%	1,450		2	%	3,346		2	%	2,758		2	%
Total	$	101,268	100	%	$	74,302	100	%	$	194,858	100	%	$	137,600	100	%

^(*)Revenue from the United Kingdom ("U.K.") represented 10% of our revenue for the three months ended January 31, 2020 and 2019, and 11% and 10% of our revenue for the six months ended January 31, 2020 and 2019, respectively.

The following table summarizes the revenue from contracts by type of customer:


	Three Months Ended January 31,														Six Months Ended January 31,
	2020						2019						2020				2019
	Amount		% Revenue		Amount		% Revenue		Amount		% Revenue		Amount		% Revenue
	(in thousands, except per percentage data)
Channel partners	$	98,132	97	%	$	71,074	96	%	$	188,375	97	%	$	131,093	95	%
Direct customers	3,136		3	%	3,228		4	%	6,483		3	%	6,507		5	%
Total	$	101,268	100	%	$	74,302	100	%	$	194,858	100	%	$	137,600	100	%

Significant Customers

No single customer accounted for 10% or more of our revenue for the three and six months ended January 31, 2020 and 2019. The following table summarizes 10% or more of the total balance of accounts receivable, net:


	January 31, 2020	July 31, 2019
Channel partner A	16%	11%
Channel partner B	12%	*
Channel partner C	10%	10%
Channel partner D	*	12%

^(*) Represents less than 10%.

Contract Balances

Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the six months ended January 31, 2020 and 2019, we recognized revenue of $148.4 million and $68.2 million, respectively, that was included in the corresponding contract liability balance at the beginning of these periods.

Remaining Performance Obligations

The typical subscription and support term is one to three years. Most of our subscription and support contracts are non-cancelable over the contractual term. However, customers typically have the right to terminate their contracts for cause, if we

fail to perform. As of January 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $608.5 million. We expect to recognize 56% of the transaction price over the next 12 months and 98% of the transaction price over the next three years, with the remainder recognized thereafter.

Costs to Obtain and Fulfill a Contract

We capitalize sales commission and associated payroll taxes paid to internal sales personnel that are incremental to the acquisition of channel partner and direct customer contracts. These costs are recorded as deferred contract acquisition costs in the condensed consolidated balance sheets.

The following table summarizes the activity of the deferred contract acquisition costs:


	Three Months Ended January 31,						Six Months Ended January 31,
	2020		2019		2020		2019
	(in thousands)
Beginning balance	$	70,426	$	55,978	$	69,785	$	55,910
Capitalization of contract acquisition costs	9,514		9,080		15,690		13,472
Amortization of deferred contract acquisition costs	(5,890)		(4,457)		(11,425)		(8,781)
Ending balance	$	74,050	$	60,601	$	74,050	$	60,601

Deferred contract acquisition costs, current	$	23,527	$	18,058	$	23,527	$	18,058
Deferred contract acquisition costs, noncurrent	50,523		42,543		50,523		42,543
Total deferred contract acquisition costs	$	74,050	$	60,601	$	74,050	$	60,601

Sales commissions accrued but not paid as of January 31, 2020 and July 31, 2019, totaled $5.7 million and $9.0 million, respectively, which are included within accrued compensation in the condensed consolidated balance sheets.

Cash Equivalents and Short-Term Investments

6 Months Ended

Jan. 31, 2020

Cash and Cash Equivalents [Abstract]

Cash Equivalents and Short-Term Investments

Cash equivalents and short-term investments consisted of the following as of January 31, 2020:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Cash equivalents:

Money market funds	$	42,374	$	—	$	—	$	42,374


U.S. government agency securities	1,500		—		—		1,500


Total	$	43,874	$	—	$	—	$	43,874

Short-term investments:
U.S. treasury securities	$	71,914	$	254	$	—	$	72,168
U.S. government agency securities	112,956		47		(23)		112,980
Corporate debt securities	122,903		334		(5)		123,232
Total	$	307,773	$	635	$	(28)	$	308,380

Total cash equivalents and short-term investments	$	351,647	$	635	$	(28)	$	352,254

Cash equivalents and short-term investments consisted of the following as of July 31, 2019:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:	(in thousands)

Money market funds	$	55,036	$	—	$	—	$	55,036





Short-term investments:
U.S. treasury securities	$	125,042	$	248	$	(9)	$	125,281
U.S. government agency securities	64,689		7		(50)		64,646
Corporate debt securities	96,047		207		(19)		96,235
Total	$	285,778	$	462	$	(78)	$	286,162

Total cash equivalents and short-term investments	$	340,814	$	462	$	(78)	$	341,198

The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of January 31, 2020:


	Amortized Cost		Fair Value
	(in thousands)
Due within one year	$	173,815	$	174,232
Due between one and two years	133,958		134,148
Total	$	307,773	$	308,380

Short-term investments that were in an unrealized loss position as of January 31, 2020 consisted of the following:


	Less than 12 Months						Greater than 12 Months						Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)

U.S. government agency securities	$	28,149	$	(17)	$	20,121	$	(6)	$	48,270	$	(23)
Corporate debt securities	6,288		(4)		1,000		(1)		7,288		(5)
Total	$	34,437	$	(21)	$	21,121	$	(7)	$	55,558	$	(28)

Unrealized losses of the above securities were primarily attributable to changes in interest rates.

Short-term investments that were in an unrealized loss position as of July 31, 2019 consisted of the following:


	Less than 12 Months						Greater than 12 Months						Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. treasury securities	$	5,719	$	(9)	$	—	$	—	$	5,719	$	(9)
U.S. government agency securities	36,550		(37)		9,992		(13)		46,542		(50)
Corporate debt securities	14,279		(16)		8,364		(3)		22,643		(19)
Total	$	56,548	$	(62)	$	18,356	$	(16)	$	74,904	$	(78)

We review the individual securities that have unrealized losses in our short-term investment portfolio on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We evaluate, among others, whether we have the intention to sell any of these investments and whether it is not more likely than not that we will be required to sell any of them before recovery of the amortized cost basis. Based on this evaluation, we determined that there were no other-than-temporary impairments associated with our short-term investments as of January 31, 2020 and July 31, 2019.

Fair Value Measurements

6 Months Ended

Jan. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Our money market funds are classified within Level I due to the highly liquid nature of these assets and have quoted prices in active markets. Certain of our investments in available-for-sale securities (i.e., U.S. treasury securities, U.S. government agency securities and corporate debt securities) are classified within Level II. The fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments.

Assets that are measured at fair value on a recurring basis consisted of the following as of January 31, 2020:


			Level I		Level II		Level III
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Cash equivalents:	(in thousands)

Money market funds	$	42,374	$	42,374	$	—	$	—

U.S. government agency securities	1,500		—		1,500		—


Total	$	43,874	$	42,374	$	1,500	$	—

Short-term investments:
U.S. treasury securities	$	72,168	$	—	$	72,168	$	—
U.S. government agency securities	112,980		—		112,980		—
Corporate debt securities	123,232		—		123,232		—
Total	$	308,380	$	—	$	308,380	$	—

Total cash equivalents and short-term investments	$	352,254	$	42,374	$	309,880	$	—

Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2019:


			Level I		Level II		Level III
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Cash equivalents:	(in thousands)

Money market funds	$	55,036	$	55,036	$	—	$	—

Short-term investments:
U.S. treasury securities	$	125,281	$	—	$	125,281	$	—
U.S. government agency securities	64,646		—		64,646		—
Corporate debt securities	96,235		—		96,235		—
Total	$	286,162	$	—	$	286,162	$	—

Total cash equivalents and short-term investments	$	341,198	$	55,036	$	286,162	$	—

We did not have transfers between levels of the fair value hierarchy of assets measured at fair value during the periods presented.

- Definition

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

+ References + Details

Property and Equipment

6 Months Ended

Jan. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consisted of the following:


	January 31, 2020		July 31, 2019
	(in thousands)
Hosting equipment	$	62,136	$	56,910
Computers and equipment	3,459		2,837
Purchased software	1,311		1,311
Capitalized internal-use software	16,221		9,904
Furniture and fixtures	1,868		1,566
Leasehold improvements	8,247		2,255
Property and equipment, gross	93,242		74,783
Less: Accumulated depreciation and amortization	(40,887)		(33,737)
Total property and equipment, net	$	52,355	$	41,046

We recognized depreciation and amortization expense on property and equipment of $3.9 million and $2.5 million for the three months ended January 31, 2020 and 2019, respectively, and $7.5 million and $4.7 million for the six months ended January 31, 2020 and 2019, respectively.

Goodwill and Acquired Intangible Assets

6 Months Ended

Jan. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

The changes in the carrying amount of goodwill consisted of the following:


	Amount
	(in thousands)
Balance as of July 31, 2019	$	7,479
Goodwill activity	—
Balance as of January 31, 2020	$	7,479

Acquired intangible assets consist of developed technology and customer relationships acquired through our asset and business acquisitions. Acquired intangible assets are amortized using the straight-line method over their useful lives.

Acquired intangible assets subject to amortization consisted of the following as of January 31, 2020 and July 31, 2019:


	Gross Carrying Amount										Accumulated Amortization						Net Carrying Amount
	July 31, 2019		Additions		January 31, 2020		July 31, 2019		Amortization Expense		January 31, 2020		January 31, 2020		July 31, 2019
	(in thousands)
Developed technology	$	9,456	$	—	$	9,456	$	(897)	$	(1,405)	$	(2,302)	$	7,154	$	8,559
Customer relationships	160		—		160		(11)		(16)		(27)		133		149
Total	$	9,616	$	—	$	9,616	$	(908)	$	(1,421)	$	(2,329)	$	7,287	$	8,708

Amortization expense of acquired intangible assets for the three and six months ended January 31, 2020 was $0.6 million and $1.4 million, respectively. Amortization expense of acquired intangible assets for the three and six months ended January 31, 2019 was $0.1 million and $0.2 million, respectively. Amortization expense of developed technology and customer relationships is recorded primarily within cost of revenues, sales and marketing expenses and research and development expenses in the condensed consolidated statements of operations.

Future amortization expense of acquired intangible assets consisted of the following as of January 31, 2020:


	Amount
Year ending July 31,	(in thousands)
2020 (remaining six months)	$	1,283
2021	2,567
2022	1,960
2023	1,456
2024	21

Total	$	7,287

Operating Leases

6 Months Ended

Jan. 31, 2020

Leases [Abstract]

Operating Leases

The following is a summary of our operating lease costs for the three and six months ended January 31, 2020:


	Three Months Ended January 31, 2020										Six Months Ended January 31, 2020
	Real Estate Arrangements		Co-Location Arrangements		Total		Real Estate Arrangements		Co-Location Arrangements		Total
	(in thousands)
Operating lease	$	1,165	$	2,098	$	3,263	$	2,333	$	3,882	$	6,215
Short-term lease cost	347		263		610		626		425		1,051
Variable lease cost	401		452		853		613		939		1,552
Total operating lease costs	$	1,913	$	2,813	$	4,726	$	3,572	$	5,246	$	8,818

At January 31, 2020, the real estate arrangements’ weighted-average remaining lease term and weighted-average discount rate for operating leases were 5.5 years and 4.7%, respectively. At January 31, 2020, the co-location arrangements' weighted-average remaining lease term and weighted-average discount rate for operating leases were 2.3 years and 3.3%. respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $2.9 million and $5.2 million for the three and six months ended January 31, 2020.

Rent expense was $0.8 million and $1.4 million for the three and six months ended January 31, 2019, respectively. Bandwidth and co-location expenses were $3.4 million and $6.4 million for the three and six months ended January 31, 2019, respectively. Rent expense prior to fiscal 2020 was recognized in accordance with ASC 840, Leases, using the straight-line method over the term of the lease.

Maturities of operating lease liabilities consisted of the following as of January 31, 2020:



	Real Estate Arrangements		Co-Location Arrangements		Total
Year ending July 31,	(in thousands)
2020 (remaining six months)	$	2,171	$	4,062	$	6,233
2021	3,912		8,087		11,999
2022	2,899		5,826		8,725
2023	2,601		394		2,995
2024	2,666		—		2,666
Thereafter	5,847		—		5,847
Total future minimum lease payments	$	20,096	$	18,369	$	38,465
Less: Imputed interest	3,304		719		4,023
Total	$	16,792	$	17,650	$	34,442

As of January 31, 2020, we have entered into non-cancelable operating leases with a term greater than 12 months that have not yet commenced with undiscounted future minimum payments of $20.5 million, which are excluded from the above table. These operating leases will commence between February 2020 and October 2022 with lease terms ranging from 2.0 years to 6.0 years.

Future minimum payments under non-cancelable operating leases consisted of the following as of July 31, 2019:



	Real Estate Arrangements		Data Center Arrangements		Total
Year ending July 31,	(in thousands)
2020	$	4,624	$	11,766	$	16,390
2021	5,836		9,890		15,726
2022	4,871		5,533		10,404
2023	6,143		106		6,249
2024	6,509		—		6,509
Thereafter	15,977		—		15,977
Total	$	43,960	$	27,295	$	71,255

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jan. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Non-cancelable Purchase Obligations In the normal course of business, we enter into non-cancelable purchase commitments with various parties to purchase products and services such as technology equipment, subscription-based cloud service arrangements, corporate events and consulting services. As of January 31, 2020, and July 31, 2019, we had outstanding non-cancelable purchase obligations with a term of 12 months or longer of $7.0 million and $2.5 million, respectively. Legal Matters Symantec Litigation On December 12, 2016 and April 18, 2017, Symantec Corporation ("Symantec") filed two separate complaints in the U.S. District Court for the District of Delaware, alleging that "Zscaler's cloud security platform" infringed multiple U.S. patents held by Symantec (the "Symantec Cases"). The complaints in the Symantec Cases sought compensatory damages, injunctions, enhanced damages and attorney fees. In July and August 2017, the Symantec Cases were transferred to the U.S. District Court for the Northern District of California. On November 4, 2019, Broadcom, Inc. ("Broadcom") announced the completion of its acquisition of certain assets and assumption of certain liabilities of Symantec's enterprise security business, including all rights, titles, and interests in the patents asserted in the Symantec Cases. On January 12, 2020, we entered into a settlement and patent license agreement with CA, Inc., a Broadcom affiliate, pursuant to which the Symantec Cases were dismissed with prejudice effective as of January 13, 2020. In connection with the settlement, we made a payment of $15.0 million to Broadcom, and Broadcom provided us with patent licenses, a release and a covenant not to sue. We determined that there is no material future economic benefit from the acquired Broadcom license and accordingly, we recorded an expense of $15.0 million within general and administrative expenses in the consolidated statement of operations for the quarter ended January 31, 2020. Finjan Litigation As further disclosed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2019, in April 2019 we entered into a patent license and settlement agreements with Finjan, Inc. and its affiliates (collectively "Finjan"), resolving all claims alleged by Finjan in the complaint filed on December 5, 2017. The settlement agreements required us to make a cash payment to Finjan for $7.3 million, of which $4.1 million was accrued in the three months ended April 30, 2019, $0.7 million in fiscal 2018 and $2.5 million in fiscal 2017. Other Litigation and Claims In addition, from time to time we are a party to various litigation matters and subject to claims that arise in the ordinary course of business, including patent, commercial, product liability, employment, class action, whistleblower and other litigation and claims, as well as governmental and other regulatory investigations and proceedings. In addition, third parties may from time to time assert claims against us in the form of letters and other communications. Except as otherwise described above, there is no pending or threatened legal proceeding to which we are a party that, in our opinion, is likely to have a material adverse effect on our future financial results or operations; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. The expense of litigation and the timing of this expense from period to period are difficult to estimate, subject to change and could adversely affect our results of operations.

Stock-Based Compensation

6 Months Ended

Jan. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Equity Incentive Plans

We adopted the Fiscal Year 2018 Equity Incentive Plan (the "2018 Plan") in fiscal 2018 and the 2007 Stock Plan (the "2007 Plan") in fiscal 2008, collectively referred to as the "Plans." Equity incentive awards which may be granted to eligible participants under the Plans include restricted stock units, restricted stock, stock options, nonstatutory stock options, stock appreciation rights, performance units and performance shares. With the establishment of the 2018 Plan, we no longer grant stock-based awards under the 2007 Plan and any shares underlying stock options that expire or terminate or are forfeited or repurchased by us under the 2007 Plan are automatically transferred to the 2018 Plan.

Stock Options

As of January 31, 2020, a total of 25.1 million shares of common stock have been reserved for the issuance of equity awards under the 2018 Plan, of which 20.6 million shares were available for grant. The number of shares of common stock available for issuance under the 2018 Plan also includes an annual increase on the first day of each fiscal year pursuant to its automatic annual increase provision.

The stock option activity consisted of the following for the six months ended January 31, 2020:


	Outstanding Stock Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
	(in thousands, except per share amounts)
Balance as of July 31, 2019	8,861	$	7.16	4.6	$	683,294
Granted	150	49.59
Exercised	(1,220)	5.54			62,182
Canceled, forfeited or expired	(297)	8.14
Balance as of January 31, 2020	7,494	$	8.24	4.3	$	358,629
Exercisable and expected to vest as of July 31, 2019	3,311	$	5.60	4.0	$	260,479
Exercisable and expected to vest as of January 31, 2020	3,469	$	6.06	3.8	$	173,540

The aggregate intrinsic value of the options exercised represents the difference between the estimated fair value of our common stock on the date of exercise and their exercise price. The total intrinsic value of options exercised for the six months ended January 31, 2020 and 2019 was $62.2 million and $129.6 million, respectively. The weighted-average grant-

date fair value per share of stock options granted for the six months ended January 31, 2020 was $22.76. There were no stock options granted during the six months ended January 31, 2019.

We estimated the fair value of stock options using the Black-Scholes option pricing model with the following assumptions:


			Six Months Ended January 31, 2020
Expected term (in years)			6.1
Expected stock price volatility			46.1%
Risk-free interest rate			1.7%
Dividend yield			0.0%

Restricted Stock Units and Performance Stock Units

The 2018 Plan allows for the grant of restricted stock units ("RSUs"). Generally, RSUs are subject to a four-year vesting period, with 25% of the shares vesting approximately one year from the vesting commencing date and quarterly thereafter over the remaining vesting term.

The 2018 Plan allows for the grant of performance stock units ("PSUs"). The right to earn the PSUs is subject to achievement of the defined performance metrics and continuous employment service. The performance metrics are defined and approved by the compensation committee of our board of directors. Generally, earned PSUs are subject to additional time-based vesting in accordance with the respective award agreement. As of January 31, 2020, there were 0.4 million outstanding PSUs for which the performance metrics have not been defined or approved by the compensation committee. Accordingly, such awards are not considered granted for accounting purposes as of January 31, 2020 and have been excluded from the below table.

The RSU and PSU activity consisted of the following for the six months ended January 31, 2020:


	Underlying Shares	Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value
	(in thousands, except per share data)
Balance as of July 31, 2019	4,152	$	48.51	$	349,872
Granted	2,106	48.63
Vested	(509)	39.20		23,987
Canceled or forfeited	(318)	53.77
Balance as of January 31, 2020	5,431	$	49.12	$	304,659

Employee Stock Purchase Plan

We adopted the Fiscal Year 2018 Employee Stock Purchase Plan (the "ESPP") in the third quarter of fiscal 2018. As of January 31, 2020, a total of 4.7 million shares of common stock have been reserved for issuance under the ESPP, of which 3.3 million shares were available for grant. The number of shares reserved includes an annual increase on the first day of each fiscal year pursuant to its automatic annual increase provision. The ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length and is comprised of four purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 15 and December 15 of each year. During the quarter ended January 31, 2020, employees purchased approximately 0.3 million shares of our common stock under our employee stock purchase plan at an average purchase price of $18.80 per share, resulting in total cash proceeds of $5.3 million.

ESPP employee payroll contributions accrued at January 31, 2020 and July 31, 2019 were $2.6 million and $2.1 million, respectively, and are included within accrued compensation in the condensed consolidated balance sheets. Payroll contributions accrued as of January 31, 2020 will be used to purchase shares at the end of the current ESPP purchase period ending on June 15, 2020. Payroll contributions ultimately used to purchase shares will be reclassified to stockholders' equity on the purchase date.

The fair value of the purchase right for the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:


	Six Months Ended January 31, 2020	Six Months Ended January 31, 2019
Expected Term in Years	0.5 - 2.0	0.5 - 2.0
Expected stock price volatility	53.6% - 57.6%	44.0% - 61.9%
Risk-free interest rate	1.5% - 1.7%	2.5% - 2.7%
Dividend Yield	0.0%	0.0%

Early Exercised Stock Options

During the six months ended January 31, 2020 and 2019, we reclassified to additional paid-in capital $0.3 million and $0.6 million, respectively, related to common stock issued upon early exercise of stock options which vested during these periods. As of January 31, 2020 and July 31, 2019, the number of shares of early exercised common stock subject to repurchase was approximately 63,000 shares and 122,000 shares with an aggregate exercise price of $0.3 million and $0.6 million, respectively. The liability for early exercised stock options is included within accrued expenses and other current liabilities in the condensed consolidated balance sheets.

Notes Receivable from Stockholders

Prior to fiscal 2017, we entered into notes receivable agreements with certain of our current and former executives and employees in connection with the exercise of their stock options. During the six months ended January 31, 2019, the outstanding principal amount of $1.9 million and accrued interest of $0.2 million were fully repaid.

Stock-based Compensation Expense

The components of stock-based compensation expense recognized in the condensed consolidated statements of operations consisted of the following:


	Three Months Ended January 31,						Six Months Ended January 31,
	2020		2019		2020		2019
	(in thousands)
Cost of revenue	$	1,580	$	619	$	2,961	$	1,122
Sales and marketing	11,943		5,517		21,982		8,318
Research and development	6,077		4,398		10,951		7,193
General and administrative	4,266		2,693		6,348		4,180
Total	$	23,866	$	13,227	$	42,242	$	20,813

As of January 31, 2020, the unrecognized stock-based compensation cost related to outstanding equity-based awards was $239.7 million, which we expect to be amortized over a weighted-average period of 2.9 years.

During the three and six months ended January 31, 2020, we capitalized $1.2 million and $2.0 million, respectively of stock-based compensation associated with the development of software for internal-use. Stock-based compensation related to projects capitalized in the prior comparative period was immaterial.

Income Taxes	6 Months Ended
Income Taxes	Jan. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, we update our estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, we make a cumulative adjustment in such period. Our quarterly tax provision, and estimate of our annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how we do business, and tax law developments. Our estimated annual effective tax rate for the year differs from the U.S. statutory rate of 21% as a result of our U.S. losses for which no benefit will be realized, as well as our foreign operations which are subject to tax rates that differ from those in the U.S. We recorded a provision for income taxes of $0.7 million and $0.5 million for the three months ended January 31, 2020 and 2019, respectively, and $1.5 million and $0.9 million for the six months ended January 31, 2020 and 2019, respectively. We are subject to income tax in the U.S. as well as other tax jurisdictions in which we conduct business. Earnings from our non-U.S. operations are subject to income taxes in the countries in which we operate. Our provision for income taxes consists primarily of both income and withholding taxes in the foreign jurisdictions in which we conduct business. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. We assess our ability to realize the deferred tax assets on a quarterly basis and we establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. We weigh all available positive and negative evidence, including our earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. Due to the weight of objectively verifiable negative evidence, including our history of losses in certain jurisdictions, we believe that it is more likely than not that our U.S. federal, state, and U.K. deferred tax assets will not be realized. Accordingly, we have maintained a valuation allowance on our U.S. federal, state, and U.K. deferred tax assets.

Net Loss Per Share Attributable to Common Stockholders

6 Months Ended

Jan. 31, 2020

Earnings Per Share [Abstract]

Net Loss Per Share Attributable to Common Stockholders

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:


	Three Months Ended January 31,						Six Months Ended January 31,
	2020		2019		2020		2019
	(in thousands)
Net loss	$	(29,154)	$	(3,555)	$	(46,230)	$	(11,143)
Weighted-average shares used in computing net loss per share, basic and diluted	128,408		122,741		127,978		121,664
Net loss per share, basic and diluted	$	(0.23)	$	(0.03)	$	(0.36)	$	(0.09)

Since we have reported net losses for all periods presented, we have excluded all potentially dilutive securities from the calculation of the diluted net loss per share as their effect is antidilutive and accordingly, basic and diluted net loss per share is the same for all periods presented.

The following table summarizes the outstanding potentially dilutive securities that were excluded from the computation of diluted net loss per share because the impact of including them would have been antidilutive:


	January 31,
	2020	2019
	(in thousands)

Outstanding stock options	7,494	12,028
Shares subject to repurchase from early exercised stock options	63	239
Share purchase rights under the ESPP	807	1,410
Unvested RSUs	4,944	3,037
Unvested PSUs ^(*)	487	464
Total	13,795	17,178

^(*) The number of unvested PSUs is based on the target number of shares granted and excludes unvested PSUs for which performance conditions have not been established as of January 31, 2020, as they are not considered outstanding for accounting purposes. Refer to Note 9, Stock-Based Compensation for further information.

Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jan. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and applicable regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting, and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements and accompanying footnotes should be read in conjunction with the Company's audited consolidated financial statements and related notes in its Annual Report on Form 10-K for the fiscal year ended July 31, 2019 (the "Fiscal 2019 Form 10-K"), as filed with the SEC on September 18, 2019.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of revenue recognition, deferred revenue, deferred contract acquisition costs, valuation of acquired intangible assets, the period of benefit generated from our deferred contract acquisition costs, allowance for doubtful accounts, valuation of common stock options and stock-based awards, useful lives of property and equipment, useful lives of acquired intangible assets, loss contingencies related to litigation, valuation of deferred tax assets and the discount rate used for operating leases. Management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ significantly from these estimates, and such differences may be material to the condensed consolidated financial statements.
Fiscal Year	Fiscal Year Our fiscal year ends on July 31. References to fiscal 2020, for example, refer to our fiscal year ending July 31, 2020.
Operating Leases	Operating Leases We enter into operating lease arrangements for real estate assets related to office space and co-location assets related to space and racks at data center facilities. We determine if an arrangement contains a lease at its inception by assessing whether there is an identified asset and whether the arrangement conveys the right to control the use of the identified asset in exchange for consideration. Operating leases related balances are included in "operating lease right-of-use assets," "operating lease liabilities," and "operating lease liabilities, noncurrent" in our condensed consolidated balance sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make payments arising from the lease. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives, such as tenant improvement allowances. Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-to-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. As the implicit rate of our leases is not determinable, we use an incremental borrowing rate ("IBR") based on the information available at the lease commencement date in determining the present value of lease payments. The lease expense is recognized on a straight-line basis over the lease term. We generally use the base, non-cancelable lease term when recognizing the right-of-use assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. We account for lease components and non-lease components as a single lease component. Leases with a term of twelve months or less are not recognized on the consolidated balance sheets. We recognize lease expense for these leases on a straight-line basis over the term of the lease.
Recently Adopted Accounting Pronouncements; Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), as amended, which requires recognition of lease assets and liabilities for leases with terms of more than 12 months. This standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We adopted this standard effective August 1, 2019 using the transitional provision which allows for the adoption of Topic 842 to be applied prospectively at the beginning of the fiscal year of adoption. As such, the condensed consolidated balance sheets for prior periods are not comparable to our fiscal 2020 periods. The adoption of this new standard resulted in the recognition of operating lease right-of-use assets of $16.9 million and operating lease liabilities of $18.0 million. We have elected the package of practical expedients permitted under the transition guidance, which allows us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our initial direct costs for any leases that existed prior to adoption of the new standard. We have also elected to combine lease and non-lease components for real estate and co-location arrangements. In addition, we elected not to recognize lease liabilities and related right-of-use assets for leases that, at the lease commencement date, have a lease term of 12 months or less. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) ("ASU 2019-12"): Simplifying the Accounting for Income Taxes. The new standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. For public business entities, it is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. We early adopted this standard as of November 1, 2019, and it did not have a material impact to our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. For public business entities, it is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of this standard on our consolidated financial statements.

Revenue Recognition (Tables)

6 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform:


	Three Months Ended January 31,														Six Months Ended January 31,
	2020						2019						2020				2019
	Amount		% Revenue		Amount		% Revenue		Amount		% Revenue		Amount		% Revenue
	(in thousands, except per percentage data)
United States	$	49,629	49	%	$	37,626	51	%	$	95,574	49	%	$	67,433	49	%
Europe, Middle East and Africa ^(*)	41,002		40	%	29,552		40	%	79,291		41	%	56,946		41	%
Asia Pacific	8,828		9	%	5,674		7	%	16,647		8	%	10,463		8	%
Other	1,809		2	%	1,450		2	%	3,346		2	%	2,758		2	%
Total	$	101,268	100	%	$	74,302	100	%	$	194,858	100	%	$	137,600	100	%

The following table summarizes the revenue from contracts by type of customer:


	Three Months Ended January 31,														Six Months Ended January 31,
	2020						2019						2020				2019
	Amount		% Revenue		Amount		% Revenue		Amount		% Revenue		Amount		% Revenue
	(in thousands, except per percentage data)
Channel partners	$	98,132	97	%	$	71,074	96	%	$	188,375	97	%	$	131,093	95	%
Direct customers	3,136		3	%	3,228		4	%	6,483		3	%	6,507		5	%
Total	$	101,268	100	%	$	74,302	100	%	$	194,858	100	%	$	137,600	100	%

Schedule of Accounts Receivable

The following table summarizes 10% or more of the total balance of accounts receivable, net:


	January 31, 2020	July 31, 2019
Channel partner A	16%	11%
Channel partner B	12%	*
Channel partner C	10%	10%
Channel partner D	*	12%

^(*) Represents less than 10%.

Capitalized Contract Cost

The following table summarizes the activity of the deferred contract acquisition costs:


	Three Months Ended January 31,						Six Months Ended January 31,
	2020		2019		2020		2019
	(in thousands)
Beginning balance	$	70,426	$	55,978	$	69,785	$	55,910
Capitalization of contract acquisition costs	9,514		9,080		15,690		13,472
Amortization of deferred contract acquisition costs	(5,890)		(4,457)		(11,425)		(8,781)
Ending balance	$	74,050	$	60,601	$	74,050	$	60,601

Deferred contract acquisition costs, current	$	23,527	$	18,058	$	23,527	$	18,058
Deferred contract acquisition costs, noncurrent	50,523		42,543		50,523		42,543
Total deferred contract acquisition costs	$	74,050	$	60,601	$	74,050	$	60,601

Cash Equivalents and Short-Term Investments (Tables)

6 Months Ended

Jan. 31, 2020

Cash and Cash Equivalents [Abstract]

Schedule of Cash Equivalents and Short-Term Investments

Cash equivalents and short-term investments consisted of the following as of January 31, 2020:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Cash equivalents:

Money market funds	$	42,374	$	—	$	—	$	42,374


U.S. government agency securities	1,500		—		—		1,500


Total	$	43,874	$	—	$	—	$	43,874

Short-term investments:
U.S. treasury securities	$	71,914	$	254	$	—	$	72,168
U.S. government agency securities	112,956		47		(23)		112,980
Corporate debt securities	122,903		334		(5)		123,232
Total	$	307,773	$	635	$	(28)	$	308,380

Total cash equivalents and short-term investments	$	351,647	$	635	$	(28)	$	352,254

Cash equivalents and short-term investments consisted of the following as of July 31, 2019:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:	(in thousands)

Money market funds	$	55,036	$	—	$	—	$	55,036





Short-term investments:
U.S. treasury securities	$	125,042	$	248	$	(9)	$	125,281
U.S. government agency securities	64,689		7		(50)		64,646
Corporate debt securities	96,047		207		(19)		96,235
Total	$	285,778	$	462	$	(78)	$	286,162

Total cash equivalents and short-term investments	$	340,814	$	462	$	(78)	$	341,198

Schedule of Maturities

The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of January 31, 2020:


	Amortized Cost		Fair Value
	(in thousands)
Due within one year	$	173,815	$	174,232
Due between one and two years	133,958		134,148
Total	$	307,773	$	308,380

Schedule of Unrealized Loss on Investments

Short-term investments that were in an unrealized loss position as of January 31, 2020 consisted of the following:


	Less than 12 Months						Greater than 12 Months						Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)

U.S. government agency securities	$	28,149	$	(17)	$	20,121	$	(6)	$	48,270	$	(23)
Corporate debt securities	6,288		(4)		1,000		(1)		7,288		(5)
Total	$	34,437	$	(21)	$	21,121	$	(7)	$	55,558	$	(28)

Unrealized losses of the above securities were primarily attributable to changes in interest rates.

Short-term investments that were in an unrealized loss position as of July 31, 2019 consisted of the following:


	Less than 12 Months						Greater than 12 Months						Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. treasury securities	$	5,719	$	(9)	$	—	$	—	$	5,719	$	(9)
U.S. government agency securities	36,550		(37)		9,992		(13)		46,542		(50)
Corporate debt securities	14,279		(16)		8,364		(3)		22,643		(19)
Total	$	56,548	$	(62)	$	18,356	$	(16)	$	74,904	$	(78)

Fair Value Measurements (Tables)

6 Months Ended

Jan. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

Assets that are measured at fair value on a recurring basis consisted of the following as of January 31, 2020:


			Level I		Level II		Level III
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Cash equivalents:	(in thousands)

Money market funds	$	42,374	$	42,374	$	—	$	—

U.S. government agency securities	1,500		—		1,500		—


Total	$	43,874	$	42,374	$	1,500	$	—

Short-term investments:
U.S. treasury securities	$	72,168	$	—	$	72,168	$	—
U.S. government agency securities	112,980		—		112,980		—
Corporate debt securities	123,232		—		123,232		—
Total	$	308,380	$	—	$	308,380	$	—

Total cash equivalents and short-term investments	$	352,254	$	42,374	$	309,880	$	—

Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2019:


			Level I		Level II		Level III
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Cash equivalents:	(in thousands)

Money market funds	$	55,036	$	55,036	$	—	$	—

Short-term investments:
U.S. treasury securities	$	125,281	$	—	$	125,281	$	—
U.S. government agency securities	64,646		—		64,646		—
Corporate debt securities	96,235		—		96,235		—
Total	$	286,162	$	—	$	286,162	$	—

Total cash equivalents and short-term investments	$	341,198	$	55,036	$	286,162	$	—

Property and Equipment (Tables)

6 Months Ended

Jan. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consisted of the following:


	January 31, 2020		July 31, 2019
	(in thousands)
Hosting equipment	$	62,136	$	56,910
Computers and equipment	3,459		2,837
Purchased software	1,311		1,311
Capitalized internal-use software	16,221		9,904
Furniture and fixtures	1,868		1,566
Leasehold improvements	8,247		2,255
Property and equipment, gross	93,242		74,783
Less: Accumulated depreciation and amortization	(40,887)		(33,737)
Total property and equipment, net	$	52,355	$	41,046

Goodwill and Acquired Intangible Assets (Tables)

6 Months Ended

Jan. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amount of goodwill consisted of the following:


	Amount
	(in thousands)
Balance as of July 31, 2019	$	7,479
Goodwill activity	—
Balance as of January 31, 2020	$	7,479

Schedule of Acquired Intangible Assets

Acquired intangible assets subject to amortization consisted of the following as of January 31, 2020 and July 31, 2019:


	Gross Carrying Amount										Accumulated Amortization						Net Carrying Amount
	July 31, 2019		Additions		January 31, 2020		July 31, 2019		Amortization Expense		January 31, 2020		January 31, 2020		July 31, 2019
	(in thousands)
Developed technology	$	9,456	$	—	$	9,456	$	(897)	$	(1,405)	$	(2,302)	$	7,154	$	8,559
Customer relationships	160		—		160		(11)		(16)		(27)		133		149
Total	$	9,616	$	—	$	9,616	$	(908)	$	(1,421)	$	(2,329)	$	7,287	$	8,708

Schedule of Future Amortization Expense

Future amortization expense of acquired intangible assets consisted of the following as of January 31, 2020:


	Amount
Year ending July 31,	(in thousands)
2020 (remaining six months)	$	1,283
2021	2,567
2022	1,960
2023	1,456
2024	21

Total	$	7,287

Operating Leases (Tables)

6 Months Ended

Jan. 31, 2020

Leases [Abstract]

Schedule of Lease Expense

The following is a summary of our operating lease costs for the three and six months ended January 31, 2020:


	Three Months Ended January 31, 2020										Six Months Ended January 31, 2020
	Real Estate Arrangements		Co-Location Arrangements		Total		Real Estate Arrangements		Co-Location Arrangements		Total
	(in thousands)
Operating lease	$	1,165	$	2,098	$	3,263	$	2,333	$	3,882	$	6,215
Short-term lease cost	347		263		610		626		425		1,051
Variable lease cost	401		452		853		613		939		1,552
Total operating lease costs	$	1,913	$	2,813	$	4,726	$	3,572	$	5,246	$	8,818

Schedule of Lease Maturities

Maturities of operating lease liabilities consisted of the following as of January 31, 2020:



	Real Estate Arrangements		Co-Location Arrangements		Total
Year ending July 31,	(in thousands)
2020 (remaining six months)	$	2,171	$	4,062	$	6,233
2021	3,912		8,087		11,999
2022	2,899		5,826		8,725
2023	2,601		394		2,995
2024	2,666		—		2,666
Thereafter	5,847		—		5,847
Total future minimum lease payments	$	20,096	$	18,369	$	38,465
Less: Imputed interest	3,304		719		4,023
Total	$	16,792	$	17,650	$	34,442

Future minimum payments under non-cancelable operating leases consisted of the following as of July 31, 2019:



	Real Estate Arrangements		Data Center Arrangements		Total
Year ending July 31,	(in thousands)
2020	$	4,624	$	11,766	$	16,390
2021	5,836		9,890		15,726
2022	4,871		5,533		10,404
2023	6,143		106		6,249
2024	6,509		—		6,509
Thereafter	15,977		—		15,977
Total	$	43,960	$	27,295	$	71,255

Stock-Based Compensation (Tables)

6 Months Ended

Jan. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Stock Options

The stock option activity consisted of the following for the six months ended January 31, 2020:


	Outstanding Stock Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
	(in thousands, except per share amounts)
Balance as of July 31, 2019	8,861	$	7.16	4.6	$	683,294
Granted	150	49.59
Exercised	(1,220)	5.54			62,182
Canceled, forfeited or expired	(297)	8.14
Balance as of January 31, 2020	7,494	$	8.24	4.3	$	358,629
Exercisable and expected to vest as of July 31, 2019	3,311	$	5.60	4.0	$	260,479
Exercisable and expected to vest as of January 31, 2020	3,469	$	6.06	3.8	$	173,540

Schedule of Valuation Assumptions

We estimated the fair value of stock options using the Black-Scholes option pricing model with the following assumptions:


			Six Months Ended January 31, 2020
Expected term (in years)			6.1
Expected stock price volatility			46.1%
Risk-free interest rate			1.7%
Dividend yield			0.0%

The fair value of the purchase right for the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:


	Six Months Ended January 31, 2020	Six Months Ended January 31, 2019
Expected Term in Years	0.5 - 2.0	0.5 - 2.0
Expected stock price volatility	53.6% - 57.6%	44.0% - 61.9%
Risk-free interest rate	1.5% - 1.7%	2.5% - 2.7%
Dividend Yield	0.0%	0.0%

Schedule of Restricted Stock Units Activity

RSU and PSU activity consisted of the following for the six months ended January 31, 2020:


	Underlying Shares	Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value
	(in thousands, except per share data)
Balance as of July 31, 2019	4,152	$	48.51	$	349,872
Granted	2,106	48.63
Vested	(509)	39.20		23,987
Canceled or forfeited	(318)	53.77
Balance as of January 31, 2020	5,431	$	49.12	$	304,659

Schedule of Allocation of Stock-based Compensation Expense

The components of stock-based compensation expense recognized in the condensed consolidated statements of operations consisted of the following:


	Three Months Ended January 31,						Six Months Ended January 31,
	2020		2019		2020		2019
	(in thousands)
Cost of revenue	$	1,580	$	619	$	2,961	$	1,122
Sales and marketing	11,943		5,517		21,982		8,318
Research and development	6,077		4,398		10,951		7,193
General and administrative	4,266		2,693		6,348		4,180
Total	$	23,866	$	13,227	$	42,242	$	20,813

Net Loss Per Share Attributable to Common Stockholders (Tables)

6 Months Ended

Jan. 31, 2020

Earnings Per Share [Abstract]

Schedule of Net Loss Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:


	Three Months Ended January 31,						Six Months Ended January 31,
	2020		2019		2020		2019
	(in thousands)
Net loss	$	(29,154)	$	(3,555)	$	(46,230)	$	(11,143)
Weighted-average shares used in computing net loss per share, basic and diluted	128,408		122,741		127,978		121,664
Net loss per share, basic and diluted	$	(0.23)	$	(0.03)	$	(0.36)	$	(0.09)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	January 31,
	2020	2019
	(in thousands)

Outstanding stock options	7,494	12,028
Shares subject to repurchase from early exercised stock options	63	239
Share purchase rights under the ESPP	807	1,410
Unvested RSUs	4,944	3,037
Unvested PSUs ^(*)	487	464
Total	13,795	17,178

Business and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Aug. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 32,142
Operating lease liabilities	$ 34,442
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 16,900
Operating lease liabilities		$ 18,000

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019	Jul. 31, 2019
Concentration Risk [Line Items]
Contract with customer, liability, revenue recognized			$ 148.4	$ 68.2
Revenue, remaining performance obligation	$ 608.5		608.5
Accrued sales commissions	$ 5.7		$ 5.7		$ 9.0
Minimum
Concentration Risk [Line Items]
Contract with customer, term of contract			1 year
Maximum
Concentration Risk [Line Items]
Contract with customer, term of contract			3 years
Subscription and Support \| Sales Revenue, Net \| Product Concentration Risk \| Transferred over Time
Concentration Risk [Line Items]
Revenue, percentage	98.00%	97.00%	98.00%	98.00%

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 101,268	$ 74,302	$ 194,858	$ 137,600
Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 101,268	$ 74,302	$ 194,858	$ 137,600
Revenue, percentage	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Net \| Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 101,268	$ 74,302	$ 194,858	$ 137,600
Revenue, percentage	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Net \| Customer Concentration Risk \| Channel partners
Disaggregation of Revenue [Line Items]
Revenue	$ 98,132	$ 71,074	$ 188,375	$ 131,093
Revenue, percentage	97.00%	96.00%	97.00%	95.00%
Sales Revenue, Net \| Customer Concentration Risk \| Direct customers
Disaggregation of Revenue [Line Items]
Revenue	$ 3,136	$ 3,228	$ 6,483	$ 6,507
Revenue, percentage	3.00%	4.00%	3.00%	5.00%
United States \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 49,629	$ 37,626	$ 95,574	$ 67,433
Revenue, percentage	49.00%	51.00%	49.00%	49.00%
Europe, Middle East and Africa \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 41,002	$ 29,552	$ 79,291	$ 56,946
Revenue, percentage	40.00%	40.00%	41.00%	41.00%
Asia Pacific \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 8,828	$ 5,674	$ 16,647	$ 10,463
Revenue, percentage	9.00%	7.00%	8.00%	8.00%
Other \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 1,809	$ 1,450	$ 3,346	$ 2,758
Revenue, percentage	2.00%	2.00%	2.00%	2.00%
United Kingdom \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue, percentage	10.00%		11.00%	10.00%

Revenue Recognition - Performance Obligation (Details)	Jan. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	56.00%
Recognized transaction price period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	98.00%
Recognized transaction price period	3 years

Revenue Recognition - Significant Customers (Details) - Accounts Receivable - Customer Concentration Risk	6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
Channel partner A
Concentration Risk [Line Items]
Accounts receivable, net	16.00%	11.00%
Channel partner B
Concentration Risk [Line Items]
Accounts receivable, net	12.00%
Channel partner C
Concentration Risk [Line Items]
Accounts receivable, net	10.00%	10.00%
Channel partner D
Concentration Risk [Line Items]
Accounts receivable, net		12.00%

Revenue Recognition - Capitalized Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jul. 31, 2019	Jan. 31, 2019
Changes in Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 70,426	$ 55,978	$ 69,785	$ 55,910
Capitalization of contract acquisition costs	9,514	9,080	15,690	13,472
Amortization of deferred contract acquisition costs	(5,890)	(4,457)	(11,425)	(8,781)
Ending balance	74,050	60,601	74,050	60,601
Deferred contract acquisition costs, current					$ 23,527	$ 21,219	$ 18,058
Deferred contract acquisition costs, noncurrent					50,523	48,566	42,543
Total deferred contract acquisition costs	$ 74,050	$ 60,601	$ 74,050	$ 60,601	$ 74,050	$ 69,785	$ 60,601

Cash Equivalents and Short-Term Investments - Schedule of Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Cash equivalents, amortized cost	$ 43,874
Cash equivalents, unrealized gains	0
Cash equivalents, unrealized losses	0
Cash equivalents	43,874
Short-term investments, amortized cost basis	307,773	$ 285,778
Short-term investment, unrealized gains	635	462
Short-term investments, unrealized losses	(28)	(78)
Short-term investments	308,380	286,162
Cash equivalents and short-term investments, amortized cost	351,647	340,814
Cash equivalents and short-term investments, unrealized gains	635	462
Cash equivalents and short-term investments, unrealized losses	(28)	(78)
Cash equivalents and short-term investments, estimated fair value	352,254	341,198
Money market funds
Debt Securities, Available-for-sale [Line Items]
Cash equivalents, amortized cost	42,374	55,036
Cash equivalents, unrealized gains	0	0
Cash equivalents, unrealized losses	0	0
Cash equivalents	42,374	55,036
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Cash equivalents, amortized cost	1,500
Cash equivalents, unrealized gains	0
Cash equivalents, unrealized losses	0
Cash equivalents	1,500
Short-term investments, amortized cost basis	112,956	64,689
Short-term investment, unrealized gains	47	7
Short-term investments, unrealized losses	(23)	(50)
Short-term investments	112,980	64,646
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Short-term investments, amortized cost basis	71,914	125,042
Short-term investment, unrealized gains	254	248
Short-term investments, unrealized losses	0	(9)
Short-term investments	72,168	125,281
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Short-term investments, amortized cost basis	122,903	96,047
Short-term investment, unrealized gains	334	207
Short-term investments, unrealized losses	(5)	(19)
Short-term investments	$ 123,232	$ 96,235

Cash Equivalents and Short-Term Investments - Schedule of Maturities (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Amortized Cost
Due within one year, cost basis	$ 173,815
Due between one and two years, cost basis	133,958
Short-term investments, amortized cost basis	307,773	$ 285,778
Fair Value
Due within one year, fair value	174,232
Due between one and two years, fair value	134,148
Total short-term investments, fair value	$ 308,380	$ 286,162

Cash Equivalents and Short-Term Investments - Schedule of Unrealized Position (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	$ 34,437	$ 56,548
Less than 12 months, unrealized losses	(21)	(62)
Greater than 12 months, fair value	21,121	18,356
Greater than 12 months, unrealized losses	(7)	(16)
Total fair value	55,558	74,904
Total unrealized losses	(28)	(78)
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	28,149	36,550
Less than 12 months, unrealized losses	(17)	(37)
Greater than 12 months, fair value	20,121	9,992
Greater than 12 months, unrealized losses	(6)	(13)
Total fair value	48,270	46,542
Total unrealized losses	(23)	(50)
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	6,288	14,279
Less than 12 months, unrealized losses	(4)	(16)
Greater than 12 months, fair value	1,000	8,364
Greater than 12 months, unrealized losses	(1)	(3)
Total fair value	7,288	22,643
Total unrealized losses	$ (5)	(19)
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value		5,719
Less than 12 months, unrealized losses		(9)
Greater than 12 months, fair value		0
Greater than 12 months, unrealized losses		0
Total fair value		5,719
Total unrealized losses		$ (9)

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Cash equivalents:
Cash equivalents	$ 43,874
Short-term investments:
Short-term investments	308,380	$ 286,162
Cash equivalents and short-term investments, estimated fair value	352,254	341,198
Fair Value, Measurements, Recurring
Cash equivalents:
Cash equivalents	43,874
Short-term investments:
Short-term investments	308,380	286,162
Cash equivalents and short-term investments, estimated fair value	352,254	341,198
Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Cash equivalents	42,374
Short-term investments:
Short-term investments	0	0
Cash equivalents and short-term investments, estimated fair value	42,374	55,036
Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Cash equivalents	1,500
Short-term investments:
Short-term investments	308,380	286,162
Cash equivalents and short-term investments, estimated fair value	309,880	286,162
Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Cash equivalents	0
Short-term investments:
Short-term investments	0	0
Cash equivalents and short-term investments, estimated fair value	0	0
Money market funds
Cash equivalents:
Cash equivalents	42,374	55,036
Money market funds \| Fair Value, Measurements, Recurring
Cash equivalents:
Cash equivalents	42,374	55,036
Money market funds \| Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Cash equivalents	42,374	55,036
Money market funds \| Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Cash equivalents	0	0
Money market funds \| Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Cash equivalents	0	0
U.S. government agency securities
Cash equivalents:
Cash equivalents	1,500
Short-term investments:
Short-term investments	112,980	64,646
U.S. government agency securities \| Fair Value, Measurements, Recurring
Cash equivalents:
Cash equivalents	1,500
Short-term investments:
Short-term investments	112,980	64,646
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Cash equivalents	0
Short-term investments:
Short-term investments	0	0
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Cash equivalents	1,500
Short-term investments:
Short-term investments	112,980	64,646
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Cash equivalents	0
Short-term investments:
Short-term investments	0	0
U.S. treasury securities
Short-term investments:
Short-term investments	72,168	125,281
U.S. treasury securities \| Fair Value, Measurements, Recurring
Short-term investments:
Short-term investments	72,168	125,281
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level I
Short-term investments:
Short-term investments	0	0
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level II
Short-term investments:
Short-term investments	72,168	125,281
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level III
Short-term investments:
Short-term investments	0	0
Corporate debt securities
Short-term investments:
Short-term investments	123,232	96,235
Corporate debt securities \| Fair Value, Measurements, Recurring
Short-term investments:
Short-term investments	123,232	96,235
Corporate debt securities \| Fair Value, Measurements, Recurring \| Level I
Short-term investments:
Short-term investments	0	0
Corporate debt securities \| Fair Value, Measurements, Recurring \| Level II
Short-term investments:
Short-term investments	123,232	96,235
Corporate debt securities \| Fair Value, Measurements, Recurring \| Level III
Short-term investments:
Short-term investments	$ 0	$ 0

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 93,242	$ 74,783
Less: Accumulated depreciation and amortization	(40,887)	(33,737)
Total property and equipment, net	52,355	41,046
Hosting equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	62,136	56,910
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,459	2,837
Purchased software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,311	1,311
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	16,221	9,904
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,868	1,566
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8,247	$ 2,255

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 3,900	$ 2,500	$ 7,508	$ 4,662

Goodwill and Acquired Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	6 Months Ended
	Jan. 31, 2020 USD ($)
Goodwill [Roll Forward]
Balance as of July 31, 2019	$ 7,479
Goodwill activity	0
Balance as of January 31, 2020	$ 7,479

Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019	Jul. 31, 2019
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance			$ 9,616
Additions			0
Intangible Assets, Gross, ending balance	$ 9,616		9,616
Accumulated Amortization, beginning balance			(908)
Amortization Expense	(600)	$ (100)	(1,421)	$ (239)
Accumulated Amortization, ending balance	(2,329)		(2,329)
Finite-Lived Intangible Assets, Net, Total	7,287		7,287		$ 8,708
Developed technology
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance			9,456
Additions			0
Intangible Assets, Gross, ending balance	9,456		9,456
Accumulated Amortization, beginning balance			(897)
Amortization Expense			(1,405)
Accumulated Amortization, ending balance	(2,302)		(2,302)
Finite-Lived Intangible Assets, Net, Total	7,154		7,154		8,559
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance			160
Additions			0
Intangible Assets, Gross, ending balance	160		160
Accumulated Amortization, beginning balance			(11)
Amortization Expense			(16)
Accumulated Amortization, ending balance	(27)		(27)
Finite-Lived Intangible Assets, Net, Total	$ 133		$ 133		$ 149

Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of acquired intangible assets	$ 600	$ 100	$ 1,421	$ 239

Goodwill and Acquired Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
2020 (remaining six months)	$ 1,283
2021	2,567
2022	1,960
2023	1,456
2024	21
Finite-Lived Intangible Assets, Net, Total	$ 7,287	$ 8,708

Operating Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jan. 31, 2020	Jan. 31, 2020
Lessee, Lease, Description [Line Items]
Operating lease	$ 3,263	$ 6,215
Short-term lease cost	610	1,051
Variable lease cost	853	1,552
Total operating lease costs	4,726	8,818
Real Estate Arrangements
Lessee, Lease, Description [Line Items]
Operating lease	1,165	2,333
Short-term lease cost	347	626
Variable lease cost	401	613
Total operating lease costs	1,913	3,572
Co-Location Arrangements
Lessee, Lease, Description [Line Items]
Operating lease	2,098	3,882
Short-term lease cost	263	425
Variable lease cost	452	939
Total operating lease costs	$ 2,813	$ 5,246

Operating Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Lessee, Lease, Description [Line Items]
Operating lease payments	$ 2,900		$ 5,189
Rent expense		$ 800		$ 1,400
Bandwidth and colocation costs		$ 3,400		$ 6,400
Operating lease, not yet commenced, amount			$ 20,500
Real Estate Arrangements
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term	5 years 6 months		5 years 6 months
Weighted discount rate	4.70%		4.70%
Co-Location Arrangements
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term	2 years 3 months 18 days		2 years 3 months 18 days
Weighted discount rate	3.30%		3.30%
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, not yet commenced, term	2 years		2 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, not yet commenced, term	6 years		6 years

Operating Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Jan. 31, 2020 USD ($)
Lessee, Lease, Description [Line Items]
2020 (remaining six months)	$ 6,233
2021	11,999
2022	8,725
2023	2,995
2024	2,666
Thereafter	5,847
Total future minimum lease payments	38,465
Less: Imputed interest	4,023
Total	34,442
Real Estate Arrangements
Lessee, Lease, Description [Line Items]
2020 (remaining six months)	2,171
2021	3,912
2022	2,899
2023	2,601
2024	2,666
Thereafter	5,847
Total future minimum lease payments	20,096
Less: Imputed interest	3,304
Total	16,792
Co-Location Arrangements
Lessee, Lease, Description [Line Items]
2020 (remaining six months)	4,062
2021	8,087
2022	5,826
2023	394
2024	0
Thereafter	0
Total future minimum lease payments	18,369
Less: Imputed interest	719
Total	$ 17,650

Operating Leases - Schedule of Future Minimum Payments (Details) $ in Thousands	Jul. 31, 2019 USD ($)
Real Estate Arrangements
2020	$ 4,624
2021	5,836
2022	4,871
2023	6,143
2024	6,509
Thereafter	15,977
Operating leases, total	43,960
Data Center Arrangements
2020	11,766
2021	9,890
2022	5,533
2023	106
2024	0
Thereafter	0
Other commitments, total	27,295
Total
2020	16,390
2021	15,726
2022	10,404
2023	6,249
2024	6,509
Thereafter	15,977
Total	$ 71,255

Commitments and Contingencies - Narrative (Details) $ in Millions		1 Months Ended	3 Months Ended	4 Months Ended
	Jan. 12, 2020 USD ($)	Apr. 30, 2019 USD ($)	Jan. 31, 2020 USD ($)	Apr. 18, 2017 claim	Jul. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)	Jul. 31, 2017 USD ($)
Loss Contingencies [Line Items]
Purchase obligation			$ 7.0		$ 2.5
Symantec Cases
Loss Contingencies [Line Items]
Complaints filed \| claim				2
Broadcom
Loss Contingencies [Line Items]
Payment for settlement	$ 15.0
Litigation expense			$ 15.0
Finjan Litigation
Loss Contingencies [Line Items]
Payment for settlement		$ 7.3
Accrued liability for potential lawsuit loss		$ 4.1				$ 0.7	$ 2.5

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020 USD ($) $ / shares shares	Jan. 31, 2019 USD ($)	Jan. 31, 2020 USD ($) vote $ / shares shares	Jan. 31, 2019 USD ($) shares	Jul. 31, 2019 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) \| shares	25,100,000		25,100,000
Shares available for grant (in shares) \| shares	20,600,000		20,600,000
Exercised, aggregate intrinsic value			$ 62,182
Granted (in shares) \| shares			150,000
Vesting of early exercised common stock options	$ 131	$ 277	$ 262	$ 567
Outstanding notes receivable, carrying amount		1,900		1,900
Interest receivable		200		200
Unrecognized compensation cost	239,700		$ 239,700
Unrecognized compensation cost, weighted-average			2 years 10 months 24 days
Capitalized stock-based compensation	$ 2,000		$ 1,200
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised, aggregate intrinsic value			$ 62,200	$ 129,600
Weighted average grant date fair value (in dollars per share) \| $ / shares			$ 22.76
Granted (in shares) \| shares				0
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance shares outstanding (in shares) \| shares	400,000		400,000
Employee Stock \| 2018 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) \| shares	4,700,000		4,700,000
Shares available for grant (in shares) \| shares	3,300,000		3,300,000
Duration of offering period			24 months
Number of purchases periods \| vote			4
Duration of purchase periods			6 months
Shares issued (in shares) \| shares	300,000
Average purchase price per share (in dollars per share) \| $ / shares	$ 18.80		$ 18.80
Cash proceeds from the issuance of common stock			$ 5,300
Accrued compensation	$ 2,600		$ 2,600		$ 2,100
Vesting one year from vesting commencing date \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage			25.00%
Additional Paid-In Capital
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting of early exercised common stock options	$ 131	$ 277	$ 262	$ 567
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock subject to repurchase (in shares) \| shares	63,000		63,000		122,000
Shares subject to repurchase, value	$ 300		$ 300		$ 600

Stock-Based Compensation - Schedule of Stock Options (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jan. 31, 2020 USD ($) $ / shares shares	Jul. 31, 2019 USD ($) $ / shares shares
Outstanding Stock Options
Beginning balance (in shares) \| shares	8,861
Granted (in shares) \| shares	150
Exercised (in shares) \| shares	(1,220)
Canceled, forfeited, expired (in shares) \| shares	(297)
Ending balance (in shares) \| shares	7,494	8,861
Exercisable and expected to vest (in shares) \| shares	3,469	3,311
Weighted-Average Exercise Price
Beginning balance (in dollars per share) \| $ / shares	$ 7.16
Granted (in dollars per share) \| $ / shares	49.59
Exercised (in dollars per share) \| $ / shares	5.54
Canceled, forfeited, expired (in dollars per share) \| $ / shares	8.14
Ending balance (in dollars per share) \| $ / shares	8.24	$ 7.16
Exercisable and expected to vest (in dollars per share) \| $ / shares	$ 6.06	$ 5.60
Additional Disclosures
Options outstanding, weighted average remaining contractual term	4 years 3 months 18 days	4 years 7 months 6 days
Exercisable and expected to vest, weighted average remaining contractual term	3 years 9 months 18 days	4 years
Options outstanding, aggregate intrinsic value \| $	$ 358,629	$ 683,294
Exercised, aggregate intrinsic value \| $	62,182
Exercisable and expected to vest, aggregate intrinsic value \| $	$ 173,540	$ 260,479

Stock-Based Compensation - Valuation Assumptions (Details)	6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
Outstanding stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 6 days
Expected stock price volatility	46.10%
Risk-free interest rate	1.70%
Dividend yield	0.00%
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected stock price volatility, minimum	53.60%	44.00%
Expected stock price volatility, maximum	57.60%	61.90%
Risk-free interest rate, minimum	1.50%	2.50%
Risk-free interest rate, maximum	1.70%	2.70%
Dividend yield	0.00%	0.00%
Employee Stock \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months	6 months
Employee Stock \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years	2 years

Stock-Based Compensation - Schedule of RSU Activity (Details) - Restricted stock units and performance stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jan. 31, 2020	Jul. 31, 2019
Underlying Shares
Beginning balance (in shares)	4,152
Granted (in shares)	2,106
Vested (in shares)	(509)
Canceled or forfeited (in shares)	(318)
Ending balance (in shares)	5,431
Weighted-Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 48.51
Granted (in dollars per share)	48.63
Vested (in dollars per share)	39.20
Canceled or forfeited (in shares)	53.77
Ending balance (in dollars per share)	$ 49.12
Aggregate Intrinsic Value
Balance	$ 304,659	$ 349,872
Vested	$ 23,987

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 23,866	$ 13,227	$ 42,242	$ 20,813
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,580	619	2,961	1,122
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	11,943	5,517	21,982	8,318
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	6,077	4,398	10,951	7,193
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 4,266	$ 2,693	$ 6,348	$ 4,180

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 716	$ 547	$ 1,510	$ 874

Net Loss Per Share Attributable to Common Stockholders - Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Earnings Per Share [Abstract]
Net loss	$ (29,154)	$ (3,555)	$ (46,230)	$ (11,143)
Weighted-average shares used in computing net loss per share, basic and diluted (in shares)	128,408	122,741	127,978	121,664
Net loss per share, basic and diluted (in dollars per share)	$ (0.23)	$ (0.03)	$ (0.36)	$ (0.09)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities Excluded from Computation (Details) - shares shares in Thousands	6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	13,795	17,178
Outstanding stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	7,494	12,028
Shares subject to repurchase from early exercised stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	63	239
Share purchase rights under the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	807	1,410
Unvested RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	4,944	3,037
Unvested performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	487	464

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 0
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	0
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	96,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	0
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	292,000
Additional Paid-in Capital [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(300,000)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 300,000