0001713683-20-000193 | 10-Q | XBRL Viewer

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Cash Equivalents and Short-Term Investments - Schedule of Maturities (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Amortized Cost
Due within one year, cost basis	$ 740,385
Due between one to three years	573,704
Amortized Cost	1,314,089	$ 1,228,143
Fair Value
Due within one year, fair value	740,633
Due between one and two years, fair value	573,305
Total short-term investments, fair value	$ 1,313,938	$ 1,228,722

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Current assets:
Cash and cash equivalents	$ 102,016	$ 141,851
Short-term investments	1,313,938	1,228,722
Accounts receivable, net	105,942	147,584
Deferred contract acquisition costs	35,589	32,240
Prepaid expenses and other current assets	22,040	31,396
Total current assets	1,579,525	1,581,793
Property and equipment, net	83,976	75,734
Operating lease right-of-use assets	45,586	36,119
Deferred contract acquisition costs, noncurrent	83,690	77,675
Acquired intangible assets, net	22,447	24,024
Goodwill	30,059	30,059
Other noncurrent assets	7,664	8,054
Total assets	1,852,947	1,833,458
Current liabilities:
Accounts payable	7,663	5,233
Accrued expenses and other current liabilities	13,871	16,361
Accrued compensation	37,097	49,444
Deferred revenue	340,035	337,263
Operating lease liabilities	17,796	15,600
Total current liabilities	416,462	423,901
Convertible senior notes, net	874,359	861,615
Deferred revenue, noncurrent	31,865	32,504
Operating lease liabilities, noncurrent	35,266	28,023
Other noncurrent liabilities	2,890	2,586
Total liabilities	1,360,842	1,348,629
Commitments and contingencies (Note 8)
Stockholders’ Equity
Common stock; $0.001 par value; 1,000,000 shares authorized as of October 31, 2020 and July 31, 2020; 134,163 and 132,817 shares issued and outstanding as of October 31, 2020 and July 31, 2020, respectively	134	133
Additional paid-in capital	886,815	823,804
Accumulated other comprehensive income (loss)	(267)	463
Accumulated deficit	(394,577)	(339,571)
Total stockholders’ equity	492,105	484,829
Total liabilities and stockholders’ equity	$ 1,852,947	$ 1,833,458

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (55,006)	$ (17,076)
Other comprehensive income (loss):
Unrealized net gains (losses) on available-for-sale securities	(730)	168
Total	(730)	168
Comprehensive loss	$ (55,736)	$ (16,908)

- Definition

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

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+ Details

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 57,185	$ 18,376
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	3,009	1,381
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	31,316	10,039
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	14,123	4,874
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 8,737	$ 2,082

Business and Summary of Significant Accounting Policies	3 Months Ended
Business and Summary of Significant Accounting Policies	Oct. 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 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 notes 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, 2020 (the "Fiscal 2020 Form 10-K"), as filed with the SEC on September 17, 2020. Interim Unaudited Condensed Consolidated Financial Statements The accompanying condensed consolidated balance sheet as of July 31, 2020 was derived from the audited consolidated financial statements as of that date. The accompanying interim condensed consolidated financial statements, including the condensed consolidated balance sheet as of October 31, 2020, the condensed consolidated statements of operations for the three months ended October 31, 2020 and 2019, the consolidated statements of comprehensive loss for the three months ended October 31, 2020 and 2019, the condensed consolidated statements of stockholders’ equity for the three months ended October 31, 2020 and 2019 and the condensed consolidated statements of cash flows for the three months ended October 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 months ended October 31, 2020 are not necessarily indicative of the results to be expected for our fiscal year ending July 31, 2021 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, valuation of deferred tax assets and liabilities, loss contingencies related to litigation, fair value and effective interest rate of our convertible senior notes, valuation of strategic investments 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. Due to the COVID-19 pandemic, there is ongoing uncertainty and significant disruption in the global economy and financial markets. We are not aware of any specific event or circumstances that would require an update to our estimates, judgments or assumptions or a revision to the carrying value of our assets or liabilities as of the date of issuance of these condensed consolidated financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained. Fiscal Year Our fiscal year ends on July 31. References to fiscal 2021, for example, refer to our fiscal year ending July 31, 2021. Significant Accounting Policies Our significant accounting policies are described in the Fiscal 2020 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 months ended October 31, 2020 other than for the adoption of new accounting guidance related to current expected credit losses effective August 1, 2020 further described below. Accounts Receivable and Allowance Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of an allowance for doubtful accounts. We have a well-established collections history from our customers. Credit is extended to customers based on an evaluation of their financial condition and other factors. In determining the necessary allowance for doubtful accounts, we estimate the lifetime expected credit losses against the existing accounts receivable balance. Our estimate is based on certain factors including historical loss rates, current economic conditions, reasonable and supportable forecasts and customer-specific circumstances. The allowance for doubtful accounts has historically not been material. There were no material write-offs recognized in the periods presented. Accordingly, the movements in the allowance for doubtful accounts were not material for any of the periods presented. We do not have any off-balance-sheet credit exposure related to our customers. Cash Equivalents and Short-Term Investments We classify all highly liquid investments purchased with an original maturity of 90 days or less from the date of purchase as cash equivalents and all highly liquid investments with original maturities beyond 90 days at the time of purchase as short-term investments. Our cash equivalents and short-term investments consist of highly liquid investments in money market funds, U.S. treasury securities, U.S. government agency securities and corporate debt securities. We classify our investments as available-for-sale investments and present them within current assets since these investments represent funds available for current operations and we have the ability and intent, if necessary, to liquidate any of these investments in order to meet our liquidity needs or to grow our business, including for potential business acquisitions or other strategic transactions. Our investments are carried at fair value, with unrealized gains and losses unrelated to credit loss factors reported in accumulated other comprehensive income (loss) within stockholders’ equity. Our investments are reviewed periodically when there is a decline in a security’s fair value below the amortized cost basis. We consider our intent to sell and whether it is more likely than not that the we will be required to sell the securities before the recovery of its cost basis. If either of these criteria are triggered, the amortized cost basis of the debt security is written down to fair value through other income (expense), net. If neither criteria is met, we evaluate whether the decline in fair value below the amortized cost basis is related to credit-related factors or other factors such as interest rate fluctuations. The factors considered in this analysis include the extent the fair value is less than the amortized cost basis, whether there were changes to the rating of the security by a ratings agency, whether the issuer has failed to make scheduled interest payments and other adverse conditions as applicable. Credit-related impairment losses, limited by the amount that the fair value is less than the amortized cost basis, are recorded through an allowance for credit losses in other income (expense), net. For purposes of identifying and measuring credit-related impairments, our policy is to exclude the applicable accrued interest from both the fair value and amortized cost basis of the related debt security. Accrued interest, net of the allowance for credit losses, if any, is recorded to prepaid expenses and other current assets. There were no credit-related impairments recognized on our investments during the periods presented. Interest income, amortization (accretion) of investments purchased at a premium (discount), realized gains and losses and declines in fair value judged to be related to credit loss on our available-for-sale securities are included in interest income in the condensed consolidated statements of operations. We use the specific identification method to determine the cost in calculating realized gains and losses upon the sale of these investments. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("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 adopted this standard as of August 1, 2020, and it did not have a material impact to our condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). This standard eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. For public business entities, it is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years using the fully retrospective or modified retrospective method. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the potential impact of this standard on our condensed consolidated financial statements.

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2020 USD ($) period shares	Oct. 31, 2019 USD ($) $ / shares	Jul. 31, 2020 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)	22,600,000
Exercised, aggregate intrinsic value \| $	$ 91,378	$ 30,800
Weighted average grant date fair value (in dollars per share) \| $ / shares		$ 22.76
Granted (in shares)	0
Unrecognized compensation cost \| $	$ 524,800
Unrecognized compensation cost, weighted-average	2 years 10 months 24 days
Capitalized stock-based compensation \| $	$ 1,500	$ 800
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Performance stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance shares outstanding (in shares)	700,000
Employee Stock \| 2018 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares)	6,000,000.0
Shares available for grant (in shares)	2,700,000
Duration of offering period	24 months
Number of purchases periods \| period	4
Duration of purchase periods	6 months
Accrued compensation \| $	$ 8,900		$ 3,500
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%
Common Stock \| 2018 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares)	31,700,000

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Oct. 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 third parties to purchase products and services such as technology equipment, subscription-based cloud service arrangements, corporate events and consulting services. During the three months ended October 31, 2020, there have been no material changes outside the ordinary course of business to our non-cancelable purchase commitments from those disclosed in our Fiscal 2020 Form 10-K. Legal Matters Litigation and Claims We are a party to various litigation matters from time to time 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. 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.

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Oct. 31, 2019
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 498	$ 794

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Goodwill and Acquired Intangible Assets (Tables)

3 Months Ended

Oct. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets

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


	Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
	July 31, 2020		Additions		October 31, 2020		July 31, 2020		Amortization Expense		October 31, 2020		October 31, 2020		July 31, 2020

	(in thousands)
Developed technology	$	26,856	$	—	$	26,856	$	(4,206)	$	(1,504)	$	(5,710)	$	21,146	$	22,650
Customer relationships	1,460		—		1,460		(86)		(73)		(159)		1,301		1,374
Total	$	28,316	$	—	$	28,316	$	(4,292)	$	(1,577)	$	(5,869)	$	22,447	$	24,024

Schedule of Future Amortization Expense

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


	Amount
Year ending July 31,	(in thousands)
2021 (remaining nine months)	$	4,732
2022	5,700
2023	5,196
2024	3,761
2025	3,058

Total	$	22,447

Convertible Senior Notes - Narrative (Details)		1 Months Ended	22 Months Ended
Convertible Senior Notes - Narrative (Details)	Jun. 25, 2020 USD ($) trading_day $ / shares	Jun. 30, 2020 USD ($)	Jun. 02, 2025 trading_day	Jul. 25, 2023 USD ($)	Oct. 31, 2020 USD ($)	Jul. 31, 2020 USD ($)
Debt Instrument [Line Items]
Proceeds from debt issuance	$ 1,130,500,000
Threshold trading days \| trading_day	20
Threshold consecutive trading days \| trading_day	30
Threshold percentage of share price that triggers conversion	130.00%
Number of trading days	5 days
Number of consecutive trading days	5 days
Percentage of closing price (less than)	98.00%
Redemption price, percentage of principal	100.00%
Effective interest rate	5.75%
Carrying amount of equity component	$ 278,500,000
Unamortized debt issuance costs	19,500,000				$ 13,861,000	$ 14,556,000
Equity issuance costs	4,700,000
Net carrying amount of equity component	273,400,000
Deferred tax impact	$ 400,000
Fair value of notes					$ 1,338,500,000
Initial strike price (in dollars per share) \| $ / shares	$ 150.80
Initial cap price (in shares) \| $ / shares	$ 246.76
Net cost of capped call		$ 145,200,000
Long-term Debt
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ 14,800,000
Forecast
Debt Instrument [Line Items]
Threshold trading days \| trading_day			20
Threshold consecutive trading days \| trading_day			30
Threshold percentage of share price that triggers conversion			130.00%
Redemption price, percentage of principal			100.00%
Minimum principal amount outstanding not subject to partial redemption				$ 100,000,000.0
Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Principal amount	$ 1,150,000,000.0
Interest rate	0.125%
Effective interest rate	6.03%
Convertible Senior Notes, $150 million
Debt Instrument [Line Items]
Principal amount	$ 150,000,000.0

Property and Equipment (Tables)

3 Months Ended

Oct. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consisted of the following:


	October 31, 2020		July 31, 2020

	(in thousands)
Hosting equipment	$	97,511	$	87,418
Computers and equipment	4,221		3,875
Purchased software	1,311		1,311
Capitalized internal-use software	26,931		23,081
Furniture and fixtures	1,017		1,965
Leasehold improvements	7,211		8,712
Property and equipment, gross	138,202		126,362
Less: Accumulated depreciation and amortization	(54,226)		(50,628)
Total property and equipment, net	$	83,976	$	75,734

Stock-Based Compensation - Schedule of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Jul. 31, 2020
Outstanding Stock Options
Beginning balance (in shares)	5,175,000
Granted (in shares)	0
Exercised (in shares)	(690,000)
Canceled, forfeited, or expired (in shares)	(10,000)
Ending balance (in shares)	4,475,000		5,175,000
Exercisable and expected to vest (in shares)	2,415,000		2,546,000
Weighted-Average Exercise Price
Beginning balance (in dollars per share)	$ 8.90
Granted (in dollars per share)	0
Exercised (in dollars per share)	6.55
Canceled, forfeited, or expired (in dollars per share)	8.64
Ending balance (in dollars per share)	9.27		$ 8.90
Exercisable and expected to vest (in dollars per share)	$ 7.44		$ 6.46
Additional Disclosures
Options outstanding, weighted average remaining contractual term	3 years 9 months 18 days		4 years
Exercisable and expected to vest, weighted average remaining contractual term	3 years 4 months 24 days		3 years 6 months
Options outstanding, aggregate intrinsic value	$ 566,049		$ 625,904
Exercised, aggregate intrinsic value	91,378	$ 30,800
Exercisable and expected to vest, aggregate intrinsic value	$ 309,854		$ 314,111

Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities Excluded from Computation (Details) - shares shares in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	13,760	14,489
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	4,475	8,296
Unvested RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	8,156	4,671
Unvested PSAs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	577	557
Number of unvested PSAs as a percentage of target	100.00%
Shares subject to repurchase from early exercised stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	5	92
Share purchase rights under the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	547	873

Net Loss Per Share Attributable to Common Stockholders - Narrative (Details) shares in Thousands, segment in Millions		3 Months Ended
	Jun. 25, 2020 shares $ / shares	Oct. 31, 2020 segment $ / shares
Earnings Per Share [Abstract]
Number of shares if notes converted (in shares)	7,626	7.6
Conversion price (in dollars per share)	$ 150.80	$ 150.80

Convertible Senior Notes - Carrying Amounts (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020	Jun. 25, 2020
Convertible Debt [Abstract]
Principal amount	$ 1,150,000	$ 1,150,000
Unamortized debt discount	261,780	273,829
Unamortized debt issuance costs	13,861	14,556	$ 19,500
Net carrying amount	$ 874,359	$ 861,615

Net Loss Per Share Attributable to Common Stockholders

3 Months Ended

Oct. 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 October 31,
	2020		2019
	(in thousands)
Net loss	$	(55,006)	$	(17,076)
Weighted-average shares used in computing net loss per share, basic and diluted	133,452		127,548
Net loss per share, basic and diluted	$	(0.41)	$	(0.13)

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:


	October 31,
	2020	2019
	(in thousands)

Stock options	4,475	8,296
Unvested RSUs	8,156	4,671
Unvested PSAs (1)	577	557
Shares subject to repurchase from early exercised stock options	5	92
Share purchase rights under the ESPP	547	873
Total	13,760	14,489

(1) The number of unvested PSAs is estimated at 100% of the target number of shares granted and excludes unvested PSAs for which performance conditions have not been established as of October 31, 2020, as they are not considered outstanding for accounting purposes. Refer to Note 9, Stock-Based Compensation, for further information.

The shares underlying the conversion option in the Notes were not considered in the calculation of diluted net loss per share as the effect would have been anti-dilutive. Based on the initial conversion price, the entire outstanding principal amount of the Notes as of October 31, 2020 would have been convertible into approximately 7.6 million shares of our common stock. Since we expect to settle the principle amount of the Notes in cash, we use the treasury stock method for calculating any potential dilutive effect on diluted net income per share, if applicable. As a result, only the amount by which the conversion value exceeds the aggregate principal amount of the Notes (the “conversion spread”) is considered in the diluted earnings per share computation. The conversion spread has a dilutive impact on diluted net income per share when the average market price of our common stock for a given period exceeds the initial conversion price of $150.80 per share for the Notes. We excluded the potentially dilutive effect of the conversion spread of the Notes as the average market price of our common stock during the three months ended October 31, 2020 was less than the initial conversion price of the Notes. In connection with the issuance of the Notes, we entered into Capped Calls, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive.

Label	Element	Value
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 0
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 0

Convertible Senior Notes - Interest Expense (Details) $ in Thousands	3 Months Ended
	Oct. 31, 2020 USD ($)
Debt Disclosure [Abstract]
Contractual interest expense	$ 359
Amortization of debt discount	12,049
Amortization of issuance costs	641
Total	$ 13,049

Goodwill and Acquired Intangible Assets

3 Months Ended

Oct. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

Goodwill

The carrying amount of goodwill was $30.1 million as of October 31, 2020 and July 31, 2020.

Acquired Intangible Assets

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 October 31, 2020 and July 31, 2020:


	Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
	July 31, 2020		Additions		October 31, 2020		July 31, 2020		Amortization Expense		October 31, 2020		October 31, 2020		July 31, 2020

	(in thousands)
Developed technology	$	26,856	$	—	$	26,856	$	(4,206)	$	(1,504)	$	(5,710)	$	21,146	$	22,650
Customer relationships	1,460		—		1,460		(86)		(73)		(159)		1,301		1,374
Total	$	28,316	$	—	$	28,316	$	(4,292)	$	(1,577)	$	(5,869)	$	22,447	$	24,024

Amortization expense of acquired intangible assets was $1.6 million and $0.8 million for the three months ended October 31, 2020 and 2019, respectively. Amortization expense of developed technology is recorded primarily within cost of revenue and research and development in the condensed consolidated statements of operations. Amortization expense of customer relationships is recorded within sales and marketing expenses in the condensed consolidated statements of operations.

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


	Amount
Year ending July 31,	(in thousands)
2021 (remaining nine months)	$	4,732
2022	5,700
2023	5,196
2024	3,761
2025	3,058

Total	$	22,447

Cash Equivalents and Short-Term Investments (Tables)

3 Months Ended

Oct. 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 October 31, 2020:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

	(in thousands)
Cash equivalents:

Money market funds	$	52,638	$	—	$	—	$	52,638







Short-term investments:
U.S. treasury securities	$	383,016	$	24	$	(111)	$	382,929
U.S. government agency securities	718,740		94		(466)		718,368
Corporate debt securities	212,333		381		(73)		212,641
Total short-term investments	$	1,314,089	$	499	$	(650)	$	1,313,938

Total cash equivalents and short-term investments	$	1,366,727	$	499	$	(650)	$	1,366,576

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


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

Cash equivalents:	(in thousands)

Money market funds	$	51,690	$	—	$	—	$	51,690
U.S. treasury securities	39,997		—		(1)		39,996
U.S. government agency securities	14,997		—		—		14,997

Total cash equivalents	$	106,684	$	—	$	(1)	$	106,683

Short-term investments:
U.S. treasury securities	$	415,539	$	152	$	(127)	$	415,564
U.S. government agency securities	595,725		186		(114)		595,797
Corporate debt securities	216,879		569		(87)		217,361
Total short-term investments	$	1,228,143	$	907	$	(328)	$	1,228,722

Total cash equivalents and short-term investments	$	1,334,827	$	907	$	(329)	$	1,335,405

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 October 31, 2020:


	Amortized Cost		Fair Value
	(in thousands)
Due within one year	$	740,385	$	740,633
Due between one to three years	573,704		573,305
Total	$	1,314,089	$	1,313,938

Schedule of Unrealized Loss on Investments

Short-term investments that were in an unrealized loss position as of October 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. treasury securities	$	296,929	$	(111)	$	—	$	—	$	296,929	$	(111)
U.S. government agency securities	436,495		(465)		3,001		(1)		439,496		(466)
Corporate debt securities	106,226		(73)		1,002		—		107,228		(73)
Total	$	839,650	$	(649)	$	4,003	$	(1)	$	843,653	$	(650)

Short-term investments that were in an unrealized loss position as of July 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. treasury securities	$	347,959	$	(127)	$	—	$	—	$	347,959	$	(127)
U.S. government agency securities	340,503		(113)		5,502		(1)		346,005		(114)
Corporate debt securities	105,953		(87)		—		—		105,953		(87)
Total	$	794,415	$	(327)	$	5,502	$	(1)	$	799,917	$	(328)

Convertible Senior Notes

3 Months Ended

Oct. 31, 2020

Debt Disclosure [Abstract]

Convertible Senior Notes

On June 25, 2020, we issued $1,150.0 million in aggregate principal amount of 0.125% Convertible Senior Notes due 2025 (the “Notes”), including the exercise in full by the initial purchasers of the Notes of their option to purchase an additional $150.0 million principal amount of the Notes. The Notes bear interest at a rate of 0.125% per year and interest is payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2021. The Notes mature on July 1, 2025, unless earlier converted, redeemed or repurchased. The total net proceeds from the offering, after deducting initial purchase discounts and other debt issuance costs, was $1,130.5 million.

The Notes are unsecured obligations and do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by us or any of our subsidiaries.

The following table presents details of the Notes:


	Initial Conversion Rate per $1,000 Principal	Initial Conversion Price		Initial Number of Shares
				(in thousands)
Notes	6.6315 shares	$	150.80	$	7,626

The Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding April 1, 2025, only under the following circumstances:

•During any fiscal quarter commencing after the fiscal quarter ending on October 31, 2020 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the Notes on each applicable trading day;

•During the five-business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate of the Notes on each such trading day;

•If we call any or all of the Notes for redemption, the Notes called for redemption (or, at our election, all Notes) may be submitted for conversion at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or

•Upon the occurrence of specified corporate events as set forth within the indenture governing the Notes.

On or after April 1, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert, all or any portion of their Notes at any time, in multiples of $1,000 principal amount, at their option regardless of the foregoing circumstances. Upon conversion, we will satisfy the conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent to settle the principal amount of the Notes in cash. During the three months ended October 31, 2020, the conditions allowing holders of the Notes to convert have not been met. The Notes were therefore not convertible during the three months ended October 31, 2020 and are classified as a noncurrent liability in our condensed consolidated balance sheet as of October 31, 2020.

We may not redeem the Notes prior to July 5, 2023. On or after July 5, 2023, and prior to the 21st scheduled trading day immediately preceding the maturity date, we may redeem for cash all or any portion of the Notes, at our option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. If we redeem less than all the outstanding Notes, and only Notes called for redemption may be converted in connection with such partial redemption, at least $100.0 million aggregate principal amount of Notes must be outstanding and not subject to such partial redemption as of the relevant redemption notice date.

In the event of a corporate event that constitutes a “fundamental change (as defined in the indenture),” holders of the Notes may require us to purchase with cash all or any portion of the Notes upon the occurrence of a fundamental change, at a purchase price equal to 100% of the principal amount of the Notes plus any accrued and unpaid interest, if any. In addition, following certain corporate events that occur prior to the maturity date or if we issue a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or notice of redemption, as the case may be.

In accounting for the issuance of the Notes and the related transaction costs, we separated the Notes into liability and equity components. The carrying amount of the liability component was initially calculated by measuring the fair value of similar liabilities that do not have associated convertible features utilizing the interest rate of 5.75%. The carrying amount of the equity component representing the conversion option was $278.5 million and was determined by deducting the fair value of the liability component from the par value of the Notes. This difference represents the debt discount that is amortized to interest expense over the term of the Notes using the effective interest rate method. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification.

Total issuance costs of $19.5 million related to the Notes were allocated between liability, totaling $14.8 million, and equity, totaling $4.7 million, in the same proportion as the allocation of the total proceeds to the liability and equity components. Issuance costs attributable to the liability component are being amortized to interest expense over the term of the Notes. The excess of the principal amount of the liability component over its carrying amount is amortized to interest expense over the contractual term of the Notes at an effective interest rate of 6.03%. The issuance costs attributable to the equity component were netted against additional paid-in capital. The amount recorded for the equity component of the Notes was $273.4 million, net of allocated issuance costs of $4.7 million and deferred tax impact of $0.4 million.

The net carrying amount of the liability component of the Notes is as follows :


	October 31, 2020		July 31, 2020

	(in thousands)
Principal amount	$	1,150,000	$	1,150,000
Less:
Unamortized debt discount	261,780		273,829
Unamortized debt issuance costs	13,861		14,556
Net carrying amount	$	874,359	$	861,615

The following table sets forth total interest expense recognized related to the Notes for the three months ended October 31, 2020:


	Amount
	(in thousands)
Contractual interest expense	$	359
Amortization of debt discount	12,049
Amortization of issuance costs	641
Total	$	13,049

The total fair value of the Notes was $1,338.5 million as of October 31, 2020. The fair value was determined based on the closing trading price per $1,000 of the Notes as of the last day of trading for the period. We consider the fair value of the Notes at October 31, 2020 to be a Level II measurement as they are not actively traded. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates.

Capped Calls

In connection with the pricing of the Notes, we entered into capped call transactions with the option counterparties (the "Capped Calls"). The Capped Calls each have an initial strike price of $150.80 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have an initial cap price of $246.76 per share, subject to certain adjustments. The capped call transactions are generally expected to reduce potential dilution to our common stock upon any conversion of the Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap. The Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting us, including merger events, tender offers and the announcement of such events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. As the Capped Calls qualify for a scope exception from derivative accounting for instruments that are both indexed to the issuer's own stock and classified in stockholder's equity in its statement of financial position, the premium of $145.2 million paid for the purchase of the Capped Calls in June 2020 was recorded as a reduction to additional paid-in capital and will not be remeasured.

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
	Oct. 31, 2020	Oct. 31, 2019
Earnings Per Share [Abstract]
Net loss	$ (55,006)	$ (17,076)
Weighted-average shares used in computing net loss per share, basic and diluted (in shares)	133,452	127,548
Net loss per share, basic and diluted (in dollars per share)	$ (0.41)	$ (0.13)

- Definition

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

+ References

+ Details

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 138,202	$ 126,362
Less: Accumulated depreciation and amortization	(54,226)	(50,628)
Total property and equipment, net	83,976	75,734
Hosting equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	97,511	87,418
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,221	3,875
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	26,931	23,081
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,017	1,965
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,211	$ 8,712

Cash Equivalents and Short-Term Investments - Schedule of Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Cash and cash equivalents
Amortized Cost		$ 106,684
Unrealized Gains		0
Unrealized Losses		(1)
Fair Value		106,683
Short-term investments:
Amortized Cost	$ 1,314,089	1,228,143
Unrealized Gains	499	907
Unrealized Losses	(650)	(328)
Fair Value	1,313,938	1,228,722
Total cash equivalents and short-term investments, amortized cost	1,366,727	1,334,827
Total cash equivalents and short-term investments, unrealized gains	499	907
Total cash equivalents and short-term investments, unrealized losses	(650)	(329)
Total cash equivalents and short-term investments	1,366,576	1,335,405
Money market funds
Cash and cash equivalents
Amortized Cost	52,638	51,690
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	52,638	51,690
U.S. treasury securities
Cash and cash equivalents
Amortized Cost		39,997
Unrealized Gains		0
Unrealized Losses		(1)
Fair Value		39,996
Short-term investments:
Amortized Cost	383,016	415,539
Unrealized Gains	24	152
Unrealized Losses	(111)	(127)
Fair Value	382,929	415,564
U.S. government agency securities
Cash and cash equivalents
Amortized Cost		14,997
Unrealized Gains		0
Unrealized Losses		0
Fair Value		14,997
Short-term investments:
Amortized Cost	718,740	595,725
Unrealized Gains	94	186
Unrealized Losses	(466)	(114)
Fair Value	718,368	595,797
Corporate debt securities
Short-term investments:
Amortized Cost	212,333	216,879
Unrealized Gains	381	569
Unrealized Losses	(73)	(87)
Fair Value	$ 212,641	$ 217,361

Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Jul. 31, 2020
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance	$ 28,316
Additions	0
Intangible Assets, Gross, ending balance	28,316
Accumulated Amortization, beginning balance	(4,292)
Amortization Expense	(1,577)	$ (779)
Accumulated Amortization, ending balance	(5,869)
Total	22,447		$ 24,024
Developed technology
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance	26,856
Additions	0
Intangible Assets, Gross, ending balance	26,856
Accumulated Amortization, beginning balance	(4,206)
Amortization Expense	(1,504)
Accumulated Amortization, ending balance	(5,710)
Total	21,146		22,650
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance	1,460
Additions	0
Intangible Assets, Gross, ending balance	1,460
Accumulated Amortization, beginning balance	(86)
Amortization Expense	(73)
Accumulated Amortization, ending balance	(159)
Total	$ 1,301		$ 1,374

Cover Page - shares	3 Months Ended
Cover Page - shares	Oct. 31, 2020	Nov. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 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		134,191,860
Entity Central Index Key	0001713683
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Revenue Recognition - Performance Obligation (Details)	Oct. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	54.00%
Recognized transaction price period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	97.00%
Recognized transaction price period	3 years

Revenue Recognition (Tables)

3 Months Ended

Oct. 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 October 31,
	2020				2019
	Amount		% Revenue		Amount		% Revenue

	(in thousands, except per percentage data)
United States	$	70,159	49	%	$	45,944	49	%
Europe, Middle East and Africa (*)	55,205		39	%	38,288		41	%
Asia Pacific	14,280		10	%	7,821		8	%
Other	2,934		2	%	1,537		2	%
Total	$	142,578	100	%	$	93,590	100	%

(*) Revenue from the United Kingdom ("U.K.") represented 10% of our revenue for each of the three months ended October 31, 2020 and 2019.

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


	Three Months Ended October 31,
	2020				2019
	Amount		% Revenue		Amount		% Revenue

	(in thousands, except per percentage data)
Channel partners	$	133,440	94	%	$	90,243	96	%
Direct customers	9,138		6	%	3,347		4	%
Total	$	142,578	100	%	$	93,590	100	%

Schedule of Accounts Receivable

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


	October 31, 2020	July 31, 2020
Channel partner A	*	11%

(*) Represents less than 10%.

Capitalized Contract Cost

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


	Three Months Ended October 31,
	2020		2019

	(in thousands)
Beginning balance	$	109,915	$	69,785
Capitalization of contract acquisition costs	18,042		6,176
Amortization of deferred contract acquisition costs	(8,678)		(5,535)
Ending balance	$	119,279	$	70,426


Deferred contract acquisition costs, current	$	35,589	$	22,060
Deferred contract acquisition costs, noncurrent	83,690		48,366
Total deferred contract acquisition costs	$	119,279	$	70,426

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 31, 2020	Jul. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	134,163,000	132,817,000
Common stock, shares outstanding (in shares)	134,163,000	132,817,000

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Cash Flows From Operating Activities
Net loss	$ (55,006)	$ (17,076)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	6,092	3,582
Amortization expense of acquired intangible assets	1,577	779
Amortization of deferred contract acquisition costs	8,678	5,535
Amortization of debt discount and issuance costs	12,690	0
Noncash operating lease costs	4,513	2,596
Stock-based compensation expense	57,185	18,376
Amortization (accretion) of investments purchased at a premium (discount)	2,605	(300)
Deferred income taxes	(520)	(49)
Impairment of assets	416	0
Other	29	223
Changes in operating assets and liabilities:
Accounts receivable	41,634	22,859
Deferred contract acquisition costs	(18,042)	(6,176)
Prepaid expenses, other current and noncurrent assets	7,883	(2,471)
Accounts payable	76	(38)
Accrued expenses, other current and noncurrent liabilities	(1,243)	(466)
Accrued compensation	(12,347)	1,382
Deferred revenue	2,133	(5,333)
Operating lease liabilities	(4,821)	(1,994)
Net cash provided by operating activities	53,532	21,429
Cash Flows From Investing Activities
Purchases of property, equipment and other assets	(8,904)	(10,210)
Capitalized internal-use software	(2,401)	(1,802)
Purchases of short-term investments	(174,663)	(88,410)
Proceeds from maturities of short-term investments	76,582	66,796
Proceeds from sale of short-term investments	11,500	0
Net cash used in investing activities	(97,886)	(33,626)
Cash Flows From Financing Activities
Proceeds from issuance of common stock upon exercise of stock options	4,519	3,059
Net cash provided by financing activities	4,519	3,059
Net decrease in cash, cash equivalents and restricted cash	(39,835)	(9,138)
Cash, cash equivalents and restricted cash at beginning of period	141,851	78,484
Cash, cash equivalents and restricted cash at end of period	102,016	69,346
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes, net of tax refunds	1,496	810
Noncash activities
Net change in purchased equipment included in accounts payable and accrued expenses	1,884	(1,893)
Operating lease right-of-use assets obtained in exchange for operating lease obligations, net of terminations	13,787	18,237
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets:
Total cash, cash equivalents and restricted cash	$ 102,016	$ 69,346

Fair Value Measurements (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Cash equivalents:
Fair Value		$ 106,683
Short-term investments:
Short-term investments	$ 1,313,938	1,228,722
Total cash equivalents and short-term investments	1,366,576	1,335,405
Fair Value, Measurements, Recurring
Cash equivalents:
Fair Value		106,683
Short-term investments:
Short-term investments	1,313,938	1,228,722
Total cash equivalents and short-term investments	1,366,576	1,335,405
Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Fair Value		51,690
Short-term investments:
Short-term investments	0	0
Total cash equivalents and short-term investments	52,638	51,690
Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Fair Value		54,993
Short-term investments:
Short-term investments	1,313,938	1,228,722
Total cash equivalents and short-term investments	1,313,938	1,283,715
Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Fair Value		0
Short-term investments:
Short-term investments	0	0
Total cash equivalents and short-term investments	0	0
Money market funds
Cash equivalents:
Fair Value	52,638	51,690
Money market funds \| Fair Value, Measurements, Recurring
Cash equivalents:
Fair Value	52,638	51,690
Money market funds \| Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Fair Value	52,638	51,690
Money market funds \| Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Fair Value	0	0
Money market funds \| Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Fair Value	0	0
U.S. treasury securities
Cash equivalents:
Fair Value		39,996
Short-term investments:
Short-term investments	382,929	415,564
U.S. treasury securities \| Fair Value, Measurements, Recurring
Cash equivalents:
Fair Value		39,996
Short-term investments:
Short-term investments	382,929	415,564
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Fair Value		0
Short-term investments:
Short-term investments	0	0
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Fair Value		39,996
Short-term investments:
Short-term investments	382,929	415,564
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Fair Value		0
Short-term investments:
Short-term investments	0	0
U.S. government agency securities
Cash equivalents:
Fair Value		14,997
Short-term investments:
Short-term investments	718,368	595,797
U.S. government agency securities \| Fair Value, Measurements, Recurring
Cash equivalents:
Fair Value		14,997
Short-term investments:
Short-term investments	718,368	595,797
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Fair Value		0
Short-term investments:
Short-term investments	0	0
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Fair Value		14,997
Short-term investments:
Short-term investments	718,368	595,797
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Fair Value		0
Short-term investments:
Short-term investments	0	0
Corporate debt securities
Short-term investments:
Short-term investments	212,641	217,361
Corporate debt securities \| Fair Value, Measurements, Recurring
Short-term investments:
Short-term investments	212,641	217,361
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	212,641	217,361
Corporate debt securities \| Fair Value, Measurements, Recurring \| Level III
Short-term investments:
Short-term investments	$ 0	$ 0

Convertible Senior Notes (Tables)

3 Months Ended

Oct. 31, 2020

Debt Disclosure [Abstract]

Schedule of Convertible Senior Notes

The following table presents details of the Notes:


	Initial Conversion Rate per $1,000 Principal	Initial Conversion Price		Initial Number of Shares
				(in thousands)
Notes	6.6315 shares	$	150.80	$	7,626

The net carrying amount of the liability component of the Notes is as follows :


	October 31, 2020		July 31, 2020

	(in thousands)
Principal amount	$	1,150,000	$	1,150,000
Less:
Unamortized debt discount	261,780		273,829
Unamortized debt issuance costs	13,861		14,556
Net carrying amount	$	874,359	$	861,615

The following table sets forth total interest expense recognized related to the Notes for the three months ended October 31, 2020:


	Amount
	(in thousands)
Contractual interest expense	$	359
Amortization of debt discount	12,049
Amortization of issuance costs	641
Total	$	13,049

Revenue Recognition - Capitalized Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2020	Jul. 31, 2020	Oct. 31, 2019
Changes in Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 109,915	$ 69,785
Capitalization of contract acquisition costs	18,042	6,176
Amortization of deferred contract acquisition costs	(8,678)	(5,535)
Ending balance	119,279	70,426
Deferred contract acquisition costs, current			$ 35,589	$ 32,240	$ 22,060
Deferred contract acquisition costs, noncurrent			83,690	77,675	48,366
Total deferred contract acquisition costs	$ 119,279	$ 70,426	$ 119,279	$ 109,915	$ 70,426

Income Taxes	3 Months Ended
Income Taxes	Oct. 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 United States. We recorded a provision for income taxes of $0.5 million and $0.8 million for the three months ended October 31, 2020 and 2019, respectively. We are subject to income tax in the United States 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.

- Definition

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

+ References + Details

Stock-Based Compensation (Tables)

3 Months Ended

Oct. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Stock Options

The stock option activity consisted of the following for the three months ended October 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, 2020	5,175	$	8.90	4.0	$	625,904
Granted	—	—
Exercised	(690)	6.55			91,378
Canceled, forfeited or expired	(10)	8.64
Balance as of October 31, 2020	4,475	$	9.27	3.8	$	566,049
Exercisable and expected to vest as of July 31, 2020	2,546	$	6.46	3.5	$	314,111
Exercisable and expected to vest as of October 31, 2020	2,415	$	7.44	3.4	$	309,854

Schedule of Restricted Stock Units and Performance Stock Awards Activity

The activity of RSUs and PSAs consisted of the following for the three months ended October 31, 2020:


	Underlying Shares	Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value
	(in thousands, except per share data)
Balance as of July 31, 2020	8,553	$	60.72	$	1,110,694
Granted	737	131.94
Vested	(646)	64.11		85,671
Canceled or forfeited	(122)	68.97
Balance as of October 31, 2020	8,522	$	66.50	$	1,156,879

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 October 31,
	2020		2019

	(in thousands)
Cost of revenue	$	3,009	$	1,381
Sales and marketing	31,316		10,039
Research and development	14,123		4,874
General and administrative	8,737		2,082
Total	$	57,185	$	18,376

Stock-Based Compensation

3 Months Ended

Oct. 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.

As of October 31, 2020, a total of 31.7 million shares of common stock have been reserved for the issuance of equity awards under the 2018 Plan, of which 22.6 million shares were available for grant.

Stock Options

The stock option activity consisted of the following for the three months ended October 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, 2020	5,175	$	8.90	4.0	$	625,904
Granted	—	—
Exercised	(690)	6.55			91,378
Canceled, forfeited or expired	(10)	8.64
Balance as of October 31, 2020	4,475	$	9.27	3.8	$	566,049
Exercisable and expected to vest as of July 31, 2020	2,546	$	6.46	3.5	$	314,111
Exercisable and expected to vest as of October 31, 2020	2,415	$	7.44	3.4	$	309,854

The aggregate intrinsic value of the options exercised represents the difference between the fair value of our common stock on the date of exercise and their exercise price. The total intrinsic value of options exercised for the three months ended October 31, 2020 and 2019 was $91.4 million and $30.8 million, respectively. The weighted-average grant date fair value per share of stock options granted for the three months ended October 31, 2019 was $22.76. There were no stock options granted during the three months ended October 31, 2020.

Restricted Stock Units and Performance Stock Awards

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 awards ("PSAs"). The right to earn the PSAs 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 or by our senior management for certain types of awards. Generally, earned PSAs are subject to additional time-based vesting.

As of October 31, 2020, there were 0.7 million outstanding PSAs for which the performance metrics have not been defined as of such date. Accordingly, such awards are not considered granted for accounting purposes as of October 31, 2020 and have been excluded from the table below.

The activity of RSUs and PSAs consisted of the following for the three months ended October 31, 2020:


	Underlying Shares	Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value
	(in thousands, except per share data)
Balance as of July 31, 2020	8,553	$	60.72	$	1,110,694
Granted	737	131.94
Vested	(646)	64.11		85,671
Canceled or forfeited	(122)	68.97
Balance as of October 31, 2020	8,522	$	66.50	$	1,156,879

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 October 31, 2020, a total of 6.0 million shares of common stock have been reserved for issuance under the ESPP, of which 2.7 million shares were available for grant. 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. ESPP employee payroll contributions accrued at October 31, 2020 and July 31, 2020 were $8.9 million and $3.5 million, respectively, and are included within accrued compensation in the condensed consolidated balance sheets. Payroll contributions accrued as of October 31, 2020 will be used to purchase shares at the end of the current ESPP purchase period ending on December 15, 2020. Payroll contributions ultimately used to purchase shares will be reclassified to stockholders' equity on the purchase date.

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 October 31,
	2020		2019

	(in thousands)
Cost of revenue	$	3,009	$	1,381
Sales and marketing	31,316		10,039
Research and development	14,123		4,874
General and administrative	8,737		2,082
Total	$	57,185	$	18,376

As of October 31, 2020, the unrecognized stock-based compensation cost related to outstanding equity-based awards, including awards for which the service inception date has been met but the grant date has not been met, was $524.8 million, which we expect to be amortized over a weighted-average period of 2.9 years.

During the three months ended October 31, 2020 and 2019 we capitalized $1.5 million and $0.8 million, respectively of stock-based compensation associated with the development of software for internal-use.

Fair Value Measurements (Tables)

3 Months Ended

Oct. 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 October 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	$	52,638	$	52,638	$	—	$	—






Short-term investments:
U.S. treasury securities	$	382,929	$	—	$	382,929	$	—
U.S. government agency securities	718,368		—		718,368		—
Corporate debt securities	212,641		—		212,641		—
Total short-term investments	$	1,313,938	$	—	$	1,313,938	$	—

Total cash equivalents and short-term investments	$	1,366,576	$	52,638	$	1,313,938	$	—

Assets that are measured at fair value on a recurring basis consisted of the following as of July 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	$	51,690	$	51,690	$	—	$	—
U.S. treasury securities	39,996		—		39,996		—
U.S. government agency securities	14,997		—		14,997		—
Total cash equivalents	$	106,683	$	51,690	$	54,993	$	—
Short-term investments:
U.S. treasury securities	$	415,564	$	—	$	415,564	$	—
U.S. government agency securities	595,797		—		595,797		—
Corporate debt securities	217,361		—		217,361		—
Total short-term investments	$	1,228,722	$	—	$	1,228,722	$	—

Total cash equivalents and short-term investments	$	1,335,405	$	51,690	$	1,283,715	$	—

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Income Statement [Abstract]
Revenue	$ 142,578	$ 93,590
Cost of revenue	31,727	19,558
Gross profit	110,851	74,032
Operating expenses:
Sales and marketing	96,889	59,411
Research and development	35,770	20,271
General and administrative	20,859	12,625
Total operating expenses	153,518	92,307
Loss from operations	(42,667)	(18,275)
Interest income	940	2,022
Interest expense	(13,049)	0
Other income (expense), net	268	(29)
Loss before income taxes	(54,508)	(16,282)
Provision for income taxes	498	794
Net loss	$ (55,006)	$ (17,076)
Net loss per share, basic and diluted (in dollars per share)	$ (0.41)	$ (0.13)
Weighted-average shares used in computing net loss per share, basic and diluted (in shares)	133,452	127,548

Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Oct. 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 notes 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, 2020 (the "Fiscal 2020 Form 10-K"), as filed with the SEC on September 17, 2020.
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, valuation of deferred tax assets and liabilities, loss contingencies related to litigation, fair value and effective interest rate of our convertible senior notes, valuation of strategic investments 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. Due to the COVID-19 pandemic, there is ongoing uncertainty and significant disruption in the global economy and financial markets. We are not aware of any specific event or circumstances that would require an update to our estimates, judgments or assumptions or a revision to the carrying value of our assets or liabilities as of the date of issuance of these condensed consolidated financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained.
Fiscal Year	Fiscal Year Our fiscal year ends on July 31. References to fiscal 2021, for example, refer to our fiscal year ending July 31, 2021.
Accounts Receivable and Allowance	Accounts Receivable and Allowance Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of an allowance for doubtful accounts. We have a well-established collections history from our customers. Credit is extended to customers based on an evaluation of their financial condition and other factors. In determining the necessary allowance for doubtful accounts, we estimate the lifetime expected credit losses against the existing accounts receivable balance. Our estimate is based on certain factors including historical loss rates, current economic conditions, reasonable and supportable forecasts and customer-specific circumstances. The allowance for doubtful accounts has historically not been material. There were no material write-offs recognized in the periods presented. Accordingly, the movements in the allowance for doubtful accounts were not material for any of the periods presented. We do not have any off-balance-sheet credit exposure related to our customers.
Cash Equivalents	We classify all highly liquid investments purchased with an original maturity of 90 days or less from the date of purchase as cash equivalents and all highly liquid investments with original maturities beyond 90 days at the time of purchase as short-term investments. Our cash equivalents and short-term investments consist of highly liquid investments in money market funds, U.S. treasury securities, U.S. government agency securities and corporate debt securities.
Short-Term Investments	We classify our investments as available-for-sale investments and present them within current assets since these investments represent funds available for current operations and we have the ability and intent, if necessary, to liquidate any of these investments in order to meet our liquidity needs or to grow our business, including for potential business acquisitions or other strategic transactions. Our investments are carried at fair value, with unrealized gains and losses unrelated to credit loss factors reported in accumulated other comprehensive income (loss) within stockholders’ equity. Our investments are reviewed periodically when there is a decline in a security’s fair value below the amortized cost basis. We consider our intent to sell and whether it is more likely than not that the we will be required to sell the securities before the recovery of its cost basis. If either of these criteria are triggered, the amortized cost basis of the debt security is written down to fair value through other income (expense), net. If neither criteria is met, we evaluate whether the decline in fair value below the amortized cost basis is related to credit-related factors or other factors such as interest rate fluctuations. The factors considered in this analysis include the extent the fair value is less than the amortized cost basis, whether there were changes to the rating of the security by a ratings agency, whether the issuer has failed to make scheduled interest payments and other adverse conditions as applicable. Credit-related impairment losses, limited by the amount that the fair value is less than the amortized cost basis, are recorded through an allowance for credit losses in other income (expense), net. For purposes of identifying and measuring credit-related impairments, our policy is to exclude the applicable accrued interest from both the fair value and amortized cost basis of the related debt security. Accrued interest, net of the allowance for credit losses, if any, is recorded to prepaid expenses and other current assets. There were no credit-related impairments recognized on our investments during the periods presented. Interest income, amortization (accretion) of investments purchased at a premium (discount), realized gains and losses and declines in fair value judged to be related to credit loss on our available-for-sale securities are included in interest income in the condensed consolidated statements of operations. We use the specific identification method to determine the cost in calculating realized gains and losses upon the sale of these investments.
Recently Adopted Accounting Pronouncements; Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("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 adopted this standard as of August 1, 2020, and it did not have a material impact to our condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). This standard eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. For public business entities, it is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years using the fully retrospective or modified retrospective method. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the potential impact of this standard on our condensed consolidated financial statements.

Business and Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Credit-related impairments	$ 0	$ 0

Revenue Recognition

3 Months Ended

Oct. 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 97% and 99% of our revenue for the three months ended October 31, 2020 and 2019, respectively.

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 October 31,
	2020				2019
	Amount		% Revenue		Amount		% Revenue

	(in thousands, except per percentage data)
United States	$	70,159	49	%	$	45,944	49	%
Europe, Middle East and Africa (*)	55,205		39	%	38,288		41	%
Asia Pacific	14,280		10	%	7,821		8	%
Other	2,934		2	%	1,537		2	%
Total	$	142,578	100	%	$	93,590	100	%

(*) Revenue from the United Kingdom ("U.K.") represented 10% of our revenue for each of the three months ended October 31, 2020 and 2019.

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


	Three Months Ended October 31,
	2020				2019
	Amount		% Revenue		Amount		% Revenue

	(in thousands, except per percentage data)
Channel partners	$	133,440	94	%	$	90,243	96	%
Direct customers	9,138		6	%	3,347		4	%
Total	$	142,578	100	%	$	93,590	100	%

Significant Customers

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


	October 31, 2020	July 31, 2020
Channel partner A	*	11%

(*) 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 three months ended October 31, 2020 and 2019, we recognized revenue of $127.6 million and $84.1 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 October 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $864.0 million. We expect to recognize 54% of the transaction price over the next 12 months and 97% 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 October 31,
	2020		2019

	(in thousands)
Beginning balance	$	109,915	$	69,785
Capitalization of contract acquisition costs	18,042		6,176
Amortization of deferred contract acquisition costs	(8,678)		(5,535)
Ending balance	$	119,279	$	70,426


Deferred contract acquisition costs, current	$	35,589	$	22,060
Deferred contract acquisition costs, noncurrent	83,690		48,366
Total deferred contract acquisition costs	$	119,279	$	70,426

Sales commissions accrued but not paid as of October 31, 2020 and July 31, 2020, totaled $9.0 million and $21.0 million, respectively, which are included within accrued compensation in the condensed consolidated balance sheets.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Fair Value Measurements

3 Months Ended

Oct. 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 October 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	$	52,638	$	52,638	$	—	$	—






Short-term investments:
U.S. treasury securities	$	382,929	$	—	$	382,929	$	—
U.S. government agency securities	718,368		—		718,368		—
Corporate debt securities	212,641		—		212,641		—
Total short-term investments	$	1,313,938	$	—	$	1,313,938	$	—

Total cash equivalents and short-term investments	$	1,366,576	$	52,638	$	1,313,938	$	—

Assets that are measured at fair value on a recurring basis consisted of the following as of July 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	$	51,690	$	51,690	$	—	$	—
U.S. treasury securities	39,996		—		39,996		—
U.S. government agency securities	14,997		—		14,997		—
Total cash equivalents	$	106,683	$	51,690	$	54,993	$	—
Short-term investments:
U.S. treasury securities	$	415,564	$	—	$	415,564	$	—
U.S. government agency securities	595,797		—		595,797		—
Corporate debt securities	217,361		—		217,361		—
Total short-term investments	$	1,228,722	$	—	$	1,228,722	$	—

Total cash equivalents and short-term investments	$	1,335,405	$	51,690	$	1,283,715	$	—

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

Refer to Note 7, Convertible Senior Notes, for the carrying amount and estimated fair value of our convertible senior notes as of October 31, 2020.

- 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

Convertible Senior Notes - Summary of Notes (Details) shares in Thousands, segment in Millions		3 Months Ended
	Jun. 25, 2020 shares $ / shares	Oct. 31, 2020 segment $ / shares
Debt Disclosure [Abstract]
Initial Conversion Rate per $1,000 Principal	0.0066
Initial conversion price (in dollars per share)	$ 150.80	$ 150.80
Initial Number of Shares (in shares)	7,626	7.6

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Jul. 31, 2020
Concentration Risk [Line Items]
Contract with customer, liability, revenue recognized	$ 127.6	$ 84.1
Revenue, remaining performance obligation	864.0
Accrued sales commissions	$ 9.0		$ 21.0
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	97.00%	99.00%

Net Loss Per Share Attributable to Common Stockholders (Tables)

3 Months Ended

Oct. 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 October 31,
	2020		2019
	(in thousands)
Net loss	$	(55,006)	$	(17,076)
Weighted-average shares used in computing net loss per share, basic and diluted	133,452		127,548
Net loss per share, basic and diluted	$	(0.41)	$	(0.13)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	October 31,
	2020	2019
	(in thousands)

Stock options	4,475	8,296
Unvested RSUs	8,156	4,671
Unvested PSAs (1)	577	557
Shares subject to repurchase from early exercised stock options	5	92
Share purchase rights under the ESPP	547	873
Total	13,760	14,489

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Common stock, beginning balance (in shares) at Jul. 31, 2019		127,253
Beginning balance at Jul. 31, 2019	$ 308,558	$ 127	$ 532,618	$ 268	$ (224,455)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		545
Issuance of common stock upon exercise of stock options	3,059	$ 1	3,058
Vesting of restricted stock units and other stock issuances (in shares)		128
Vesting of restricted stock units and other stock issuances	0
Vesting of early exercised common stock options	131		131
Stock-based compensation	19,212		19,212
Unrealized net gains (losses) on available-for-sale securities	168			168
Net loss	(17,076)				(17,076)
Common stock, ending balance (in shares) at Oct. 31, 2019		127,926
Ending balance at Oct. 31, 2019	$ 314,052	$ 128	555,019	436	(241,531)
Common stock, beginning balance (in shares) at Jul. 31, 2020	132,817	132,817
Beginning balance at Jul. 31, 2020	$ 484,829	$ 133	823,804	463	(339,571)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	690	690
Issuance of common stock upon exercise of stock options	$ 4,519	$ 1	4,518
Vesting of restricted stock units and other stock issuances (in shares)		656
Vesting of restricted stock units and other stock issuances	0
Vesting of early exercised common stock options	70		70
Stock-based compensation	58,423		58,423
Unrealized net gains (losses) on available-for-sale securities	(730)			(730)
Net loss	$ (55,006)				(55,006)
Common stock, ending balance (in shares) at Oct. 31, 2020	134,163	134,163
Ending balance at Oct. 31, 2020	$ 492,105	$ 134	$ 886,815	$ (267)	$ (394,577)

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 6,092	$ 3,582

Revenue Recognition - Significant Customers (Details)	12 Months Ended
Revenue Recognition - Significant Customers (Details)	Jul. 31, 2020
Channel partner A \| Accounts Receivable \| Customer Concentration Risk
Concentration Risk [Line Items]
Accounts receivable, net	11.00%

Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Jul. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 30,059		$ 30,059
Amortization expense of acquired intangible assets	$ 1,577	$ 779

Cash Equivalents and Short-Term Investments - Schedule of Unrealized Position (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	$ 839,650	$ 794,415
Less than 12 months, unrealized losses	(649)	(327)
Greater than 12 months, fair value	4,003	5,502
Greater than 12 months, unrealized losses	(1)	(1)
Total fair value	843,653	799,917
Total unrealized losses	(650)	(328)
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	296,929	347,959
Less than 12 months, unrealized losses	(111)	(127)
Greater than 12 months, fair value	0	0
Greater than 12 months, unrealized losses	0	0
Total fair value	296,929	347,959
Total unrealized losses	(111)	(127)
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	436,495	340,503
Less than 12 months, unrealized losses	(465)	(113)
Greater than 12 months, fair value	3,001	5,502
Greater than 12 months, unrealized losses	(1)	(1)
Total fair value	439,496	346,005
Total unrealized losses	(466)	(114)
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	106,226	105,953
Less than 12 months, unrealized losses	(73)	(87)
Greater than 12 months, fair value	1,002	0
Greater than 12 months, unrealized losses	0	0
Total fair value	107,228	105,953
Total unrealized losses	$ (73)	$ (87)

Stock-Based Compensation - Schedule of RSU and PSA Activity (Details) - Restricted Stock Units and Performance Stock Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2020	Jul. 31, 2020
Underlying Shares
Beginning balance (in shares)	8,553
Granted (in shares)	737
Vested (in shares)	(646)
Canceled or forfeited (in shares)	(122)
Ending balance (in shares)	8,522
Weighted-Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 60.72
Granted (in dollars per share)	131.94
Vested (in dollars per share)	64.11
Canceled or forfeited (in shares)	68.97
Ending balance (in dollars per share)	$ 66.50
Aggregate Intrinsic Value
Balance	$ 1,156,879	$ 1,110,694
Vested	$ 85,671

Cash Equivalents and Short-Term Investments

3 Months Ended

Oct. 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 October 31, 2020:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

	(in thousands)
Cash equivalents:

Money market funds	$	52,638	$	—	$	—	$	52,638







Short-term investments:
U.S. treasury securities	$	383,016	$	24	$	(111)	$	382,929
U.S. government agency securities	718,740		94		(466)		718,368
Corporate debt securities	212,333		381		(73)		212,641
Total short-term investments	$	1,314,089	$	499	$	(650)	$	1,313,938

Total cash equivalents and short-term investments	$	1,366,727	$	499	$	(650)	$	1,366,576

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


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

Cash equivalents:	(in thousands)

Money market funds	$	51,690	$	—	$	—	$	51,690
U.S. treasury securities	39,997		—		(1)		39,996
U.S. government agency securities	14,997		—		—		14,997

Total cash equivalents	$	106,684	$	—	$	(1)	$	106,683

Short-term investments:
U.S. treasury securities	$	415,539	$	152	$	(127)	$	415,564
U.S. government agency securities	595,725		186		(114)		595,797
Corporate debt securities	216,879		569		(87)		217,361
Total short-term investments	$	1,228,143	$	907	$	(328)	$	1,228,722

Total cash equivalents and short-term investments	$	1,334,827	$	907	$	(329)	$	1,335,405

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


	Amortized Cost		Fair Value
	(in thousands)
Due within one year	$	740,385	$	740,633
Due between one to three years	573,704		573,305
Total	$	1,314,089	$	1,313,938

Short-term investments that were in an unrealized loss position as of October 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. treasury securities	$	296,929	$	(111)	$	—	$	—	$	296,929	$	(111)
U.S. government agency securities	436,495		(465)		3,001		(1)		439,496		(466)
Corporate debt securities	106,226		(73)		1,002		—		107,228		(73)
Total	$	839,650	$	(649)	$	4,003	$	(1)	$	843,653	$	(650)

Short-term investments that were in an unrealized loss position as of July 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. treasury securities	$	347,959	$	(127)	$	—	$	—	$	347,959	$	(127)
U.S. government agency securities	340,503		(113)		5,502		(1)		346,005		(114)
Corporate debt securities	105,953		(87)		—		—		105,953		(87)
Total	$	794,415	$	(327)	$	5,502	$	(1)	$	799,917	$	(328)

We review the individual securities that have unrealized losses in our short-term investment portfolio on a regular basis. 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. Neither of these criteria were met in any period presented. We additionally evaluate whether the decline in fair value of the security below its amortized cost basis is related to credit losses or other factors. Based on this evaluation, we determined that unrealized losses of the above securities were primarily attributable to changes in interest rates and not credit-related factors. Accordingly, we determined that an allowance for credit losses was unnecessary for our short-term investments as of October 31, 2020 and July 31, 2020.

We recorded $3.5 million and $3.8 million of accrued interest receivable within prepaid expenses and other current assets in our condensed consolidated balance sheet as of October 31, 2020 and July 31, 2020, respectively

Cash Equivalents and Short-Term Investments - Narrative (Details) - USD ($) $ in Millions	Oct. 31, 2020	Jul. 31, 2020
Cash and Cash Equivalents [Abstract]
Accrued interest receivable	$ 3.5	$ 3.8

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 142,578	$ 93,590
Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 142,578	$ 93,590
Revenue, percentage	100.00%	100.00%
Sales Revenue, Net \| Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 142,578	$ 93,590
Revenue, percentage	100.00%	100.00%
Sales Revenue, Net \| Customer Concentration Risk \| Channel partners
Disaggregation of Revenue [Line Items]
Revenue	$ 133,440	$ 90,243
Revenue, percentage	94.00%	96.00%
Sales Revenue, Net \| Customer Concentration Risk \| Direct customers
Disaggregation of Revenue [Line Items]
Revenue	$ 9,138	$ 3,347
Revenue, percentage	6.00%	4.00%
United States \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 70,159	$ 45,944
Revenue, percentage	49.00%	49.00%
Europe, Middle East and Africa \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 55,205	$ 38,288
Revenue, percentage	39.00%	41.00%
Asia Pacific \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 14,280	$ 7,821
Revenue, percentage	10.00%	8.00%
Other \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 2,934	$ 1,537
Revenue, percentage	2.00%	2.00%
United Kingdom \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue, percentage	10.00%	10.00%

Property and Equipment

3 Months Ended

Oct. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consisted of the following:


	October 31, 2020		July 31, 2020

	(in thousands)
Hosting equipment	$	97,511	$	87,418
Computers and equipment	4,221		3,875
Purchased software	1,311		1,311
Capitalized internal-use software	26,931		23,081
Furniture and fixtures	1,017		1,965
Leasehold improvements	7,211		8,712
Property and equipment, gross	138,202		126,362
Less: Accumulated depreciation and amortization	(54,226)		(50,628)
Total property and equipment, net	$	83,976	$	75,734

We recognized depreciation and amortization expense on property and equipment of $6.1 million and $3.6 million for the three months ended October 31, 2020 and 2019, respectively.

Goodwill and Acquired Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2021 (remaining nine months)	$ 4,732
2022	5,700
2023	5,196
2024	3,761
2025	3,058
Total	$ 22,447	$ 24,024