Number of shares | ||
Balance—July 31, 2015 | 8.1 | |
Authorized | 3.8 | |
RSUs and RSAs granted | (4.3 | ) |
RSUs forfeited | 0.6 | |
Balance—July 31, 2016 | 8.2 |
July 31, 2016 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
Certificates of deposit | $ | 5.4 | $ | — | $ | — | $ | 5.4 | |||||||
Commercial paper | 3.0 | — | — | 3.0 | |||||||||||
Corporate debt securities | 286.7 | 0.8 | — | 287.5 | |||||||||||
U.S. government and agency securities | 907.3 | 0.9 | (0.1 | ) | 908.1 | ||||||||||
Total | $ | 1,202.4 | $ | 1.7 | $ | (0.1 | ) | $ | 1,204.0 |
July 31, 2015 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
Certificates of deposit | $ | 1.0 | $ | — | $ | — | $ | 1.0 | |||||||
Corporate debt securities | 190.9 | — | (0.2 | ) | 190.7 | ||||||||||
U.S. government and agency securities | 760.2 | 0.3 | (0.2 | ) | 760.3 | ||||||||||
Total | $ | 952.1 | $ | 0.3 | $ | (0.4 | ) | $ | 952.0 |
Amount | |||
Cash | $ | 90.1 | |
Common stock (1.3 million shares) | 87.5 | ||
Total | $ | 177.6 |
Amount | |||
Cash | $ | 6.9 | |
Goodwill | 145.3 | ||
Identified intangible assets | 42.3 | ||
Accrued and other liabilities, net | (7.0 | ) | |
Long-term deferred tax liability, net | (9.9 | ) | |
Total | $ | 177.6 |
Fair Value | Estimated Useful Life | ||||
Developed technology | $ | 34.5 | 7 years | ||
In-process research and development | 7.6 | N/A | |||
Other | 0.2 | 2 years | |||
Total | $ | 42.3 |
Amount | |||
Goodwill | $ | 10.1 | |
Identified intangible assets | 2.2 | ||
Net liabilities assumed | (2.0 | ) | |
Total | $ | 10.3 |
Fair Value | Estimated Useful Life | ||||
In-process research and development held for defensive purposes | $ | 1.9 | 3 years | ||
Other | 0.3 | 2 years | |||
Total | $ | 2.2 |
• | Persuasive Evidence of an Arrangement Exists. We rely upon non-cancelable sales agreements and purchase orders to determine the existence of an arrangement. |
• | Delivery has Occurred. We use shipping documents or transmissions of product or service contract registration codes to determine delivery. |
• | The Fee is Fixed or Determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction. |
• | Collectability is Reasonably Assured. We assess collectability based on credit analysis and payment history. |
Amount | |||
Years ending July 31: | |||
2017 | $ | 27.3 | |
2018 | 33.3 | ||
2019 | 46.2 | ||
2020 | 49.8 | ||
2021 | 54.1 | ||
2022 and thereafter | 298.6 | ||
Committed gross lease payments | 509.3 | ||
Less: proceeds from sublease rental | 5.1 | ||
Net operating lease obligation | $ | 504.2 |
July 31, | |||||||
2016 | 2015 | ||||||
Liability: | |||||||
Principal | $ | 575.0 | $ | 575.0 | |||
Less: debt discount, net of amortization | 66.8 | 87.9 | |||||
Net carrying amount | $ | 508.2 | $ | 487.1 | |||
Equity (including temporary equity) | $ | 109.8 | $ | 109.8 |
• | during any fiscal quarter commencing after the fiscal quarter ending on October 31, 2014 (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 the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the Notes on each applicable trading day (the “sale price condition”); |
• | during the five business day period after any five consecutive trading day period, in which the trading price per $1,000 principal amount of 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 for the Notes on each such trading day; or |
• | upon the occurrence of specified corporate events. |
July 31, | |||||||
2016 | 2015 | ||||||
Liability: | |||||||
Principal | $ | 575.0 | $ | 575.0 | |||
Less: debt discount, net of amortization | 66.8 | 87.9 | |||||
Net carrying amount | $ | 508.2 | $ | 487.1 | |||
Equity (including temporary equity) | $ | 109.8 | $ | 109.8 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Amortization of debt discount | $ | 21.1 | $ | 20.2 | $ | 1.6 | |||||
Amortization of debt issuance costs | 2.3 | 2.1 | 0.2 | ||||||||
Total interest expense recognized | $ | 23.4 | $ | 22.3 | $ | 1.8 | |||||
Effective interest rate of the liability component | 4.8 | % | 4.8 | % | 4.8 | % |
Options Outstanding | ||||||||||||
Number of Shares | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||
Balance—July 31, 2015 | 3.3 | $ | 13.74 | 6.2 | $ | 562.9 | ||||||
Options granted | — | — | ||||||||||
Options forfeited | — | — | ||||||||||
Options exercised | (1.2 | ) | 14.21 | |||||||||
Balance—July 31, 2016 | 2.1 | $ | 13.42 | 5.2 | $ | 244.9 | ||||||
Options vested and expected to vest—July 31, 2016 | 2.1 | $ | 13.42 | 5.2 | $ | 244.9 | ||||||
Options exercisable—July 31, 2016 | 2.1 | $ | 13.42 | 5.2 | $ | 244.9 |
RSAs Outstanding | RSUs Outstanding | ||||||||||||||||||
Number of Shares | Weighted- Average Grant-Date Fair Value Per Share | Number of Shares | Weighted- Average Grant-Date Fair Value Per Share | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Balance—July 31, 2015 | — | $ | — | 7.2 | $ | 95.66 | 1.2 | $ | 1,334.8 | ||||||||||
Granted | 1.1 | 170.97 | 3.2 | 160.60 | |||||||||||||||
Vested | — | — | (3.3 | ) | 89.76 | ||||||||||||||
Forfeited | — | — | (0.6 | ) | 104.08 | ||||||||||||||
Balance—July 31, 2016 | 1.1 | $ | 170.97 | 6.5 | $ | 130.14 | 1.1 | $ | 852.7 | ||||||||||
Expected to vest—July 31, 2016 | 1.0 | $ | 170.97 | 6.2 | $ | 129.64 | 1.1 | $ | 810.0 |
Number of shares | ||
Balance—July 31, 2015 | 8.1 | |
Authorized | 3.8 | |
RSUs and RSAs granted | (4.3 | ) |
RSUs forfeited | 0.6 | |
Balance—July 31, 2016 | 8.2 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cost of product revenue | $ | 6.2 | $ | 3.9 | $ | 1.6 | |||||
Cost of services revenue | 40.9 | 20.4 | 9.4 | ||||||||
Research and development | 132.9 | 74.8 | 29.5 | ||||||||
Sales and marketing | 152.4 | 84.1 | 42.6 | ||||||||
General and administrative | 60.5 | 38.2 | 16.8 | ||||||||
Total share-based compensation | $ | 392.9 | $ | 221.4 | $ | 99.9 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net loss | $ | (225.9 | ) | $ | (165.0 | ) | $ | (226.5 | ) | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 87.1 | 81.6 | 74.3 | ||||||||
Net loss per share, basic and diluted | $ | (2.59 | ) | $ | (2.02 | ) | $ | (3.05 | ) |
Year Ended July 31, | ||||||||
2016 | 2015 | 2014 | ||||||
RSUs | 6.5 | 7.2 | 6.0 | |||||
Convertible senior notes | 5.2 | 5.2 | 5.2 | |||||
Warrants related to the issuance of convertible senior notes | 5.2 | 5.2 | 5.2 | |||||
Options to purchase common stock | 2.1 | 3.3 | 5.8 | |||||
RSAs | 1.1 | — | — | |||||
ESPP shares | 0.1 | 0.1 | 0.1 | |||||
Total | 20.2 | 21.0 | 22.3 |
July 31, 2016 | July 31, 2015 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||||||||||||
Commercial paper | — | 3.0 | — | 3.0 | — | — | — | — | ||||||||||||||||||||||||
Corporate debt securities | — | 121.4 | — | 121.4 | — | 97.8 | — | 97.8 | ||||||||||||||||||||||||
U.S. government and agency securities | — | 426.8 | — | 426.8 | — | 314.4 | — | 314.4 | ||||||||||||||||||||||||
Total short-term investments | — | 551.2 | — | 551.2 | — | 413.2 | — | 413.2 | ||||||||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | — | 5.4 | — | 5.4 | — | — | — | — | ||||||||||||||||||||||||
Corporate debt securities | — | 166.1 | — | 166.1 | — | 92.9 | — | 92.9 | ||||||||||||||||||||||||
U.S. government and agency securities | — | 481.3 | — | 481.3 | — | 445.9 | — | 445.9 | ||||||||||||||||||||||||
Total long-term investments | — | 652.8 | — | 652.8 | — | 538.8 | — | 538.8 | ||||||||||||||||||||||||
Total assets measured at fair value | $ | — | $ | 1,204.0 | $ | — | $ | 1,204.0 | $ | — | $ | 952.0 | $ | — | $ | 952.0 |
• | Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. |
• | Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. |
July 31, 2016 | July 31, 2015 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||||||||||||
Commercial paper | — | 3.0 | — | 3.0 | — | — | — | — | ||||||||||||||||||||||||
Corporate debt securities | — | 121.4 | — | 121.4 | — | 97.8 | — | 97.8 | ||||||||||||||||||||||||
U.S. government and agency securities | — | 426.8 | — | 426.8 | — | 314.4 | — | 314.4 | ||||||||||||||||||||||||
Total short-term investments | — | 551.2 | — | 551.2 | — | 413.2 | — | 413.2 | ||||||||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | — | 5.4 | — | 5.4 | — | — | — | — | ||||||||||||||||||||||||
Corporate debt securities | — | 166.1 | — | 166.1 | — | 92.9 | — | 92.9 | ||||||||||||||||||||||||
U.S. government and agency securities | — | 481.3 | — | 481.3 | — | 445.9 | — | 445.9 | ||||||||||||||||||||||||
Total long-term investments | — | 652.8 | — | 652.8 | — | 538.8 | — | 538.8 | ||||||||||||||||||||||||
Total assets measured at fair value | $ | — | $ | 1,204.0 | $ | — | $ | 1,204.0 | $ | — | $ | 952.0 | $ | — | $ | 952.0 |
• | Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. |
• | Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. |
Fair Value | Estimated Useful Life | ||||
Developed technology | $ | 34.5 | 7 years | ||
In-process research and development | 7.6 | N/A | |||
Other | 0.2 | 2 years | |||
Total | $ | 42.3 |
July 31, | |||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Developed technology | $ | 53.1 | $ | (15.4 | ) | $ | 37.7 | $ | 53.1 | $ | (7.7 | ) | $ | 45.4 | |||||||||
Acquired intellectual property | 8.9 | (2.9 | ) | 6.0 | 8.2 | (1.9 | ) | 6.3 | |||||||||||||||
In-process research and development held for defensive purposes | 1.9 | (1.6 | ) | 0.3 | 1.9 | (1.0 | ) | 0.9 | |||||||||||||||
Other | 0.5 | (0.5 | ) | — | 0.5 | (0.4 | ) | 0.1 | |||||||||||||||
Total purchased intangible assets | $ | 64.4 | $ | (20.4 | ) | $ | 44.0 | $ | 63.7 | $ | (11.0 | ) | $ | 52.7 |
Amount | |||
Years ending July 31: | |||
2017 | $ | 8.7 | |
2018 | 8.3 | ||
2019 | 8.2 | ||
2020 | 8.1 | ||
2021 | 6.5 | ||
2022 and thereafter | 4.2 | ||
Total future amortization expense | $ | 44.0 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
United States | $ | (216.2 | ) | $ | (47.5 | ) | $ | (149.3 | ) | ||
Foreign | 11.1 | (108.1 | ) | (72.9 | ) | ||||||
Total | $ | (205.1 | ) | $ | (155.6 | ) | $ | (222.2 | ) |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Federal: | |||||||||||
Current | $ | 1.9 | $ | 1.8 | $ | 0.8 | |||||
Deferred | (0.6 | ) | (3.0 | ) | — | ||||||
State: | |||||||||||
Current | 1.1 | 0.7 | 0.2 | ||||||||
Deferred | (0.1 | ) | (0.4 | ) | (0.3 | ) | |||||
Foreign: | |||||||||||
Current | 19.1 | 10.7 | 4.7 | ||||||||
Deferred | (0.6 | ) | (0.4 | ) | (1.1 | ) | |||||
Total | $ | 20.8 | $ | 9.4 | $ | 4.3 |
Year Ended July 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Effect of: | ||||||||
State taxes, net of federal tax benefit | (1.5 | ) | 3.6 | 1.3 | ||||
Foreign income at other than U.S. rates | (8.8 | ) | (6.5 | ) | (12.1 | ) | ||
Change in valuation allowance | (24.9 | ) | (28.5 | ) | (21.3 | ) | ||
Share-based compensation | (13.3 | ) | (10.2 | ) | (3.2 | ) | ||
Amortization of deferred tax charges | (2.8 | ) | (2.2 | ) | — | |||
Research credits | 9.5 | 6.7 | 1.3 | |||||
Other, net | (3.4 | ) | (3.9 | ) | (2.9 | ) | ||
Total | (10.2 | )% | (6.0 | )% | (1.9 | )% |
July 31, | |||||||
2016 | 2015 | ||||||
Deferred tax assets: | |||||||
Accruals and reserves | $ | 43.5 | $ | 38.9 | |||
Deferred revenue | 62.0 | 35.3 | |||||
Research and development and foreign tax credits | 41.4 | 20.1 | |||||
Net operating loss carryforwards | 5.4 | 18.4 | |||||
Share-based compensation | 55.2 | 35.9 | |||||
Gross deferred tax assets | 207.5 | 148.6 | |||||
Valuation allowance | (189.4 | ) | (138.4 | ) | |||
Total deferred tax assets | 18.1 | 10.2 | |||||
Deferred tax liabilities: | |||||||
Fixed assets and intangible assets | (14.2 | ) | (7.9 | ) | |||
Other deferred tax liabilities | (2.5 | ) | (1.6 | ) | |||
Total deferred tax liabilities | (16.7 | ) | (9.5 | ) | |||
Total | $ | 1.4 | $ | 0.7 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Unrecognized tax benefits at the beginning of the period | $ | 67.2 | $ | 10.4 | $ | 6.6 | |||||
Additions for tax positions taken in prior years | 25.2 | 6.1 | 0.4 | ||||||||
Reductions for tax positions taken in prior years | — | (0.6 | ) | — | |||||||
Additions for tax positions taken in the current year | 35.3 | 51.3 | 3.4 | ||||||||
Unrecognized tax benefits at the end of the period | $ | 127.7 | $ | 67.2 | $ | 10.4 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Amortization of debt discount | $ | 21.1 | $ | 20.2 | $ | 1.6 | |||||
Amortization of debt issuance costs | 2.3 | 2.1 | 0.2 | ||||||||
Total interest expense recognized | $ | 23.4 | $ | 22.3 | $ | 1.8 | |||||
Effective interest rate of the liability component | 4.8 | % | 4.8 | % | 4.8 | % |
Amortized Cost | Fair Value | ||||||
Due within one year | $ | 551.0 | $ | 551.2 | |||
Due between one and three years | 651.4 | 652.8 | |||||
Total | $ | 1,202.4 | $ | 1,204.0 |
July 31, 2016 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
Certificates of deposit | $ | 5.4 | $ | — | $ | — | $ | 5.4 | |||||||
Commercial paper | 3.0 | — | — | 3.0 | |||||||||||
Corporate debt securities | 286.7 | 0.8 | — | 287.5 | |||||||||||
U.S. government and agency securities | 907.3 | 0.9 | (0.1 | ) | 908.1 | ||||||||||
Total | $ | 1,202.4 | $ | 1.7 | $ | (0.1 | ) | $ | 1,204.0 |
July 31, 2015 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
Certificates of deposit | $ | 1.0 | $ | — | $ | — | $ | 1.0 | |||||||
Corporate debt securities | 190.9 | — | (0.2 | ) | 190.7 | ||||||||||
U.S. government and agency securities | 760.2 | 0.3 | (0.2 | ) | 760.3 | ||||||||||
Total | $ | 952.1 | $ | 0.3 | $ | (0.4 | ) | $ | 952.0 |
Amortized Cost | Fair Value | ||||||
Due within one year | $ | 551.0 | $ | 551.2 | |||
Due between one and three years | 651.4 | 652.8 | |||||
Total | $ | 1,202.4 | $ | 1,204.0 |
• | Mutual dismissal with prejudice of all pending litigation between the parties and general release of all liability for Palo Alto Networks and Juniper, |
• | Cross-license between both parties for the patents-in-suit and associated family members and counterparts worldwide for the life of the patents, and |
• | Mutual covenant not to sue for infringement of any other patents for a period of eight years. |
July 31, | |||||||
2016 | 2015 | ||||||
Computers, equipment, and software | $ | 102.7 | $ | 62.6 | |||
Leasehold improvements | 58.0 | 25.5 | |||||
Demonstration units | 20.1 | 16.0 | |||||
Furniture and fixtures | 14.6 | 6.6 | |||||
Total property and equipment | 195.4 | 110.7 | |||||
Less: accumulated depreciation | (78.2 | ) | (47.8 | ) | |||
Total property and equipment, net | $ | 117.2 | $ | 62.9 |
July 31, | |||||||
2016 | 2015 | ||||||
Computers, equipment, and software | $ | 102.7 | $ | 62.6 | |||
Leasehold improvements | 58.0 | 25.5 | |||||
Demonstration units | 20.1 | 16.0 | |||||
Furniture and fixtures | 14.6 | 6.6 | |||||
Total property and equipment | 195.4 | 110.7 | |||||
Less: accumulated depreciation | (78.2 | ) | (47.8 | ) | |||
Total property and equipment, net | $ | 117.2 | $ | 62.9 |
Three Months Ended | |||||||||||||||
Oct. 31, 2015 | Jan. 31, 2016 | Apr. 30, 2016 | Jul. 31, 2016 | ||||||||||||
Revenue: | |||||||||||||||
Product | $ | 147.7 | $ | 169.9 | $ | 162.1 | $ | 191.1 | |||||||
Services | 149.5 | 164.8 | 183.7 | 209.7 | |||||||||||
Total revenue | 297.2 | 334.7 | 345.8 | 400.8 | |||||||||||
Cost of revenue: | |||||||||||||||
Product | 38.8 | 44.9 | 43.2 | 48.5 | |||||||||||
Services | 40.4 | 49.3 | 51.7 | 53.2 | |||||||||||
Total cost of revenue | 79.2 | 94.2 | 94.9 | 101.7 | |||||||||||
Total gross profit | 218.0 | 240.5 | 250.9 | 299.1 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 59.7 | 74.0 | 74.0 | 76.5 | |||||||||||
Sales and marketing | 158.3 | 187.6 | 202.0 | 228.1 | |||||||||||
General and administrative | 30.8 | 34.2 | 33.5 | 39.9 | |||||||||||
Total operating expenses | 248.8 | 295.8 | 309.5 | 344.5 | |||||||||||
Operating loss | (30.8 | ) | (55.3 | ) | (58.6 | ) | (45.4 | ) | |||||||
Interest expense | (5.8 | ) | (5.8 | ) | (5.8 | ) | (6.0 | ) | |||||||
Other income, net | 2.2 | 2.5 | 1.0 | 2.7 | |||||||||||
Loss before income taxes | (34.4 | ) | (58.6 | ) | (63.4 | ) | (48.7 | ) | |||||||
Provision for income taxes | 4.3 | 3.9 | 6.8 | 5.8 | |||||||||||
Net loss | $ | (38.7 | ) | $ | (62.5 | ) | $ | (70.2 | ) | $ | (54.5 | ) | |||
Net loss per share, basic and diluted | $ | (0.45 | ) | $ | (0.72 | ) | $ | (0.80 | ) | $ | (0.61 | ) |
Three Months Ended | |||||||||||||||
Oct. 31, 2014 | Jan. 31, 2015 | Apr. 30, 2015 | Jul. 31, 2015 | ||||||||||||
Revenue: | |||||||||||||||
Product | $ | 101.5 | $ | 115.6 | $ | 121.5 | $ | 154.1 | |||||||
Services | 90.8 | 102.1 | 112.7 | 129.8 | |||||||||||
Total revenue | 192.3 | 217.7 | 234.2 | 283.9 | |||||||||||
Cost of revenue: | |||||||||||||||
Product | 29.1 | 30.7 | 32.8 | 38.5 | |||||||||||
Services | 24.3 | 28.7 | 31.6 | 35.8 | |||||||||||
Total cost of revenue | 53.4 | 59.4 | 64.4 | 74.3 | |||||||||||
Total gross profit | 138.9 | 158.3 | 169.8 | 209.6 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 37.3 | 47.0 | 48.4 | 53.1 | |||||||||||
Sales and marketing | 106.4 | 122.8 | 131.1 | 162.4 | |||||||||||
General and administrative | 19.0 | 27.0 | 27.0 | 28.6 | |||||||||||
Total operating expenses | 162.7 | 196.8 | 206.5 | 244.1 | |||||||||||
Operating loss | (23.8 | ) | (38.5 | ) | (36.7 | ) | (34.5 | ) | |||||||
Interest expense | (5.5 | ) | (5.5 | ) | (5.7 | ) | (5.6 | ) | |||||||
Other income (expense), net | 0.4 | 0.3 | — | (0.5 | ) | ||||||||||
Loss before income taxes | (28.9 | ) | (43.7 | ) | (42.4 | ) | (40.6 | ) | |||||||
Provision for (benefit from) income taxes | 1.2 | (0.7 | ) | 3.5 | 5.4 | ||||||||||
Net loss | $ | (30.1 | ) | $ | (43.0 | ) | $ | (45.9 | ) | $ | (46.0 | ) | |||
Net loss per share, basic and diluted | $ | (0.38 | ) | $ | (0.53 | ) | $ | (0.56 | ) | $ | (0.55 | ) |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenue: | |||||||||||
Americas | |||||||||||
United States | $ | 901.8 | $ | 593.8 | $ | 363.2 | |||||
Other Americas | 71.4 | 45.6 | 33.5 | ||||||||
Total Americas | 973.2 | 639.4 | 396.7 | ||||||||
Europe, the Middle East, and Africa (“EMEA”) | 247.1 | 178.7 | 126.9 | ||||||||
Asia Pacific and Japan (“APAC”) | 158.2 | 110.0 | 74.6 | ||||||||
Total revenue | $ | 1,378.5 | $ | 928.1 | $ | 598.2 |
• | Persuasive Evidence of an Arrangement Exists. We rely upon non-cancelable sales agreements and purchase orders to determine the existence of an arrangement. |
• | Delivery has Occurred. We use shipping documents or transmissions of product or service contract registration codes to determine delivery. |
• | The Fee is Fixed or Determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction. |
• | Collectability is Reasonably Assured. We assess collectability based on credit analysis and payment history. |
Year Ended July 31, | ||||||||
2016 | 2015 | 2014 | ||||||
RSUs | 6.5 | 7.2 | 6.0 | |||||
Convertible senior notes | 5.2 | 5.2 | 5.2 | |||||
Warrants related to the issuance of convertible senior notes | 5.2 | 5.2 | 5.2 | |||||
Options to purchase common stock | 2.1 | 3.3 | 5.8 | |||||
RSAs | 1.1 | — | — | |||||
ESPP shares | 0.1 | 0.1 | 0.1 | |||||
Total | 20.2 | 21.0 | 22.3 |
Amount | |||
Cash | $ | 90.1 | |
Common stock (1.3 million shares) | 87.5 | ||
Total | $ | 177.6 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Federal: | |||||||||||
Current | $ | 1.9 | $ | 1.8 | $ | 0.8 | |||||
Deferred | (0.6 | ) | (3.0 | ) | — | ||||||
State: | |||||||||||
Current | 1.1 | 0.7 | 0.2 | ||||||||
Deferred | (0.1 | ) | (0.4 | ) | (0.3 | ) | |||||
Foreign: | |||||||||||
Current | 19.1 | 10.7 | 4.7 | ||||||||
Deferred | (0.6 | ) | (0.4 | ) | (1.1 | ) | |||||
Total | $ | 20.8 | $ | 9.4 | $ | 4.3 |
July 31, | |||||||
2016 | 2015 | ||||||
Deferred tax assets: | |||||||
Accruals and reserves | $ | 43.5 | $ | 38.9 | |||
Deferred revenue | 62.0 | 35.3 | |||||
Research and development and foreign tax credits | 41.4 | 20.1 | |||||
Net operating loss carryforwards | 5.4 | 18.4 | |||||
Share-based compensation | 55.2 | 35.9 | |||||
Gross deferred tax assets | 207.5 | 148.6 | |||||
Valuation allowance | (189.4 | ) | (138.4 | ) | |||
Total deferred tax assets | 18.1 | 10.2 | |||||
Deferred tax liabilities: | |||||||
Fixed assets and intangible assets | (14.2 | ) | (7.9 | ) | |||
Other deferred tax liabilities | (2.5 | ) | (1.6 | ) | |||
Total deferred tax liabilities | (16.7 | ) | (9.5 | ) | |||
Total | $ | 1.4 | $ | 0.7 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net loss | $ | (225.9 | ) | $ | (165.0 | ) | $ | (226.5 | ) | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 87.1 | 81.6 | 74.3 | ||||||||
Net loss per share, basic and diluted | $ | (2.59 | ) | $ | (2.02 | ) | $ | (3.05 | ) |
Year Ended July 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Effect of: | ||||||||
State taxes, net of federal tax benefit | (1.5 | ) | 3.6 | 1.3 | ||||
Foreign income at other than U.S. rates | (8.8 | ) | (6.5 | ) | (12.1 | ) | ||
Change in valuation allowance | (24.9 | ) | (28.5 | ) | (21.3 | ) | ||
Share-based compensation | (13.3 | ) | (10.2 | ) | (3.2 | ) | ||
Amortization of deferred tax charges | (2.8 | ) | (2.2 | ) | — | |||
Research credits | 9.5 | 6.7 | 1.3 | |||||
Other, net | (3.4 | ) | (3.9 | ) | (2.9 | ) | ||
Total | (10.2 | )% | (6.0 | )% | (1.9 | )% |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cost of product revenue | $ | 6.2 | $ | 3.9 | $ | 1.6 | |||||
Cost of services revenue | 40.9 | 20.4 | 9.4 | ||||||||
Research and development | 132.9 | 74.8 | 29.5 | ||||||||
Sales and marketing | 152.4 | 84.1 | 42.6 | ||||||||
General and administrative | 60.5 | 38.2 | 16.8 | ||||||||
Total share-based compensation | $ | 392.9 | $ | 221.4 | $ | 99.9 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenue: | |||||||||||
Product | $ | 670.8 | $ | 492.7 | $ | 340.1 | |||||
Services | |||||||||||
Subscription | 357.0 | 212.7 | 123.2 | ||||||||
Support and maintenance | 350.7 | 222.7 | 134.9 | ||||||||
Total services | 707.7 | 435.4 | 258.1 | ||||||||
Total revenue | $ | 1,378.5 | $ | 928.1 | $ | 598.2 |
Fair Value | Estimated Useful Life | ||||
In-process research and development held for defensive purposes | $ | 1.9 | 3 years | ||
Other | 0.3 | 2 years | |||
Total | $ | 2.2 |
Amount | |||
Years ending July 31: | |||
2017 | $ | 27.3 | |
2018 | 33.3 | ||
2019 | 46.2 | ||
2020 | 49.8 | ||
2021 | 54.1 | ||
2022 and thereafter | 298.6 | ||
Committed gross lease payments | 509.3 | ||
Less: proceeds from sublease rental | 5.1 | ||
Net operating lease obligation | $ | 504.2 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
United States | $ | (216.2 | ) | $ | (47.5 | ) | $ | (149.3 | ) | ||
Foreign | 11.1 | (108.1 | ) | (72.9 | ) | ||||||
Total | $ | (205.1 | ) | $ | (155.6 | ) | $ | (222.2 | ) |
July 31, | |||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Developed technology | $ | 53.1 | $ | (15.4 | ) | $ | 37.7 | $ | 53.1 | $ | (7.7 | ) | $ | 45.4 | |||||||||
Acquired intellectual property | 8.9 | (2.9 | ) | 6.0 | 8.2 | (1.9 | ) | 6.3 | |||||||||||||||
In-process research and development held for defensive purposes | 1.9 | (1.6 | ) | 0.3 | 1.9 | (1.0 | ) | 0.9 | |||||||||||||||
Other | 0.5 | (0.5 | ) | — | 0.5 | (0.4 | ) | 0.1 | |||||||||||||||
Total purchased intangible assets | $ | 64.4 | $ | (20.4 | ) | $ | 44.0 | $ | 63.7 | $ | (11.0 | ) | $ | 52.7 |
Three Months Ended | |||||||||||||||
Oct. 31, 2015 | Jan. 31, 2016 | Apr. 30, 2016 | Jul. 31, 2016 | ||||||||||||
Revenue: | |||||||||||||||
Product | $ | 147.7 | $ | 169.9 | $ | 162.1 | $ | 191.1 | |||||||
Services | 149.5 | 164.8 | 183.7 | 209.7 | |||||||||||
Total revenue | 297.2 | 334.7 | 345.8 | 400.8 | |||||||||||
Cost of revenue: | |||||||||||||||
Product | 38.8 | 44.9 | 43.2 | 48.5 | |||||||||||
Services | 40.4 | 49.3 | 51.7 | 53.2 | |||||||||||
Total cost of revenue | 79.2 | 94.2 | 94.9 | 101.7 | |||||||||||
Total gross profit | 218.0 | 240.5 | 250.9 | 299.1 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 59.7 | 74.0 | 74.0 | 76.5 | |||||||||||
Sales and marketing | 158.3 | 187.6 | 202.0 | 228.1 | |||||||||||
General and administrative | 30.8 | 34.2 | 33.5 | 39.9 | |||||||||||
Total operating expenses | 248.8 | 295.8 | 309.5 | 344.5 | |||||||||||
Operating loss | (30.8 | ) | (55.3 | ) | (58.6 | ) | (45.4 | ) | |||||||
Interest expense | (5.8 | ) | (5.8 | ) | (5.8 | ) | (6.0 | ) | |||||||
Other income, net | 2.2 | 2.5 | 1.0 | 2.7 | |||||||||||
Loss before income taxes | (34.4 | ) | (58.6 | ) | (63.4 | ) | (48.7 | ) | |||||||
Provision for income taxes | 4.3 | 3.9 | 6.8 | 5.8 | |||||||||||
Net loss | $ | (38.7 | ) | $ | (62.5 | ) | $ | (70.2 | ) | $ | (54.5 | ) | |||
Net loss per share, basic and diluted | $ | (0.45 | ) | $ | (0.72 | ) | $ | (0.80 | ) | $ | (0.61 | ) |
Three Months Ended | |||||||||||||||
Oct. 31, 2014 | Jan. 31, 2015 | Apr. 30, 2015 | Jul. 31, 2015 | ||||||||||||
Revenue: | |||||||||||||||
Product | $ | 101.5 | $ | 115.6 | $ | 121.5 | $ | 154.1 | |||||||
Services | 90.8 | 102.1 | 112.7 | 129.8 | |||||||||||
Total revenue | 192.3 | 217.7 | 234.2 | 283.9 | |||||||||||
Cost of revenue: | |||||||||||||||
Product | 29.1 | 30.7 | 32.8 | 38.5 | |||||||||||
Services | 24.3 | 28.7 | 31.6 | 35.8 | |||||||||||
Total cost of revenue | 53.4 | 59.4 | 64.4 | 74.3 | |||||||||||
Total gross profit | 138.9 | 158.3 | 169.8 | 209.6 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 37.3 | 47.0 | 48.4 | 53.1 | |||||||||||
Sales and marketing | 106.4 | 122.8 | 131.1 | 162.4 | |||||||||||
General and administrative | 19.0 | 27.0 | 27.0 | 28.6 | |||||||||||
Total operating expenses | 162.7 | 196.8 | 206.5 | 244.1 | |||||||||||
Operating loss | (23.8 | ) | (38.5 | ) | (36.7 | ) | (34.5 | ) | |||||||
Interest expense | (5.5 | ) | (5.5 | ) | (5.7 | ) | (5.6 | ) | |||||||
Other income (expense), net | 0.4 | 0.3 | — | (0.5 | ) | ||||||||||
Loss before income taxes | (28.9 | ) | (43.7 | ) | (42.4 | ) | (40.6 | ) | |||||||
Provision for (benefit from) income taxes | 1.2 | (0.7 | ) | 3.5 | 5.4 | ||||||||||
Net loss | $ | (30.1 | ) | $ | (43.0 | ) | $ | (45.9 | ) | $ | (46.0 | ) | |||
Net loss per share, basic and diluted | $ | (0.38 | ) | $ | (0.53 | ) | $ | (0.56 | ) | $ | (0.55 | ) |
Amount | |||
Cash | $ | 6.9 | |
Goodwill | 145.3 | ||
Identified intangible assets | 42.3 | ||
Accrued and other liabilities, net | (7.0 | ) | |
Long-term deferred tax liability, net | (9.9 | ) | |
Total | $ | 177.6 |
Amount | |||
Goodwill | $ | 10.1 | |
Identified intangible assets | 2.2 | ||
Net liabilities assumed | (2.0 | ) | |
Total | $ | 10.3 |
RSAs Outstanding | RSUs Outstanding | ||||||||||||||||||
Number of Shares | Weighted- Average Grant-Date Fair Value Per Share | Number of Shares | Weighted- Average Grant-Date Fair Value Per Share | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Balance—July 31, 2015 | — | $ | — | 7.2 | $ | 95.66 | 1.2 | $ | 1,334.8 | ||||||||||
Granted | 1.1 | 170.97 | 3.2 | 160.60 | |||||||||||||||
Vested | — | — | (3.3 | ) | 89.76 | ||||||||||||||
Forfeited | — | — | (0.6 | ) | 104.08 | ||||||||||||||
Balance—July 31, 2016 | 1.1 | $ | 170.97 | 6.5 | $ | 130.14 | 1.1 | $ | 852.7 | ||||||||||
Expected to vest—July 31, 2016 | 1.0 | $ | 170.97 | 6.2 | $ | 129.64 | 1.1 | $ | 810.0 |
Options Outstanding | ||||||||||||
Number of Shares | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||
Balance—July 31, 2015 | 3.3 | $ | 13.74 | 6.2 | $ | 562.9 | ||||||
Options granted | — | — | ||||||||||
Options forfeited | — | — | ||||||||||
Options exercised | (1.2 | ) | 14.21 | |||||||||
Balance—July 31, 2016 | 2.1 | $ | 13.42 | 5.2 | $ | 244.9 | ||||||
Options vested and expected to vest—July 31, 2016 | 2.1 | $ | 13.42 | 5.2 | $ | 244.9 | ||||||
Options exercisable—July 31, 2016 | 2.1 | $ | 13.42 | 5.2 | $ | 244.9 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Unrecognized tax benefits at the beginning of the period | $ | 67.2 | $ | 10.4 | $ | 6.6 | |||||
Additions for tax positions taken in prior years | 25.2 | 6.1 | 0.4 | ||||||||
Reductions for tax positions taken in prior years | — | (0.6 | ) | — | |||||||
Additions for tax positions taken in the current year | 35.3 | 51.3 | 3.4 | ||||||||
Unrecognized tax benefits at the end of the period | $ | 127.7 | $ | 67.2 | $ | 10.4 |
Amount | |||
Years ending July 31: | |||
2017 | $ | 8.7 | |
2018 | 8.3 | ||
2019 | 8.2 | ||
2020 | 8.1 | ||
2021 | 6.5 | ||
2022 and thereafter | 4.2 | ||
Total future amortization expense | $ | 44.0 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenue: | |||||||||||
Americas | |||||||||||
United States | $ | 901.8 | $ | 593.8 | $ | 363.2 | |||||
Other Americas | 71.4 | 45.6 | 33.5 | ||||||||
Total Americas | 973.2 | 639.4 | 396.7 | ||||||||
Europe, the Middle East, and Africa (“EMEA”) | 247.1 | 178.7 | 126.9 | ||||||||
Asia Pacific and Japan (“APAC”) | 158.2 | 110.0 | 74.6 | ||||||||
Total revenue | $ | 1,378.5 | $ | 928.1 | $ | 598.2 |
Year Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenue: | |||||||||||
Product | $ | 670.8 | $ | 492.7 | $ | 340.1 | |||||
Services | |||||||||||
Subscription | 357.0 | 212.7 | 123.2 | ||||||||
Support and maintenance | 350.7 | 222.7 | 134.9 | ||||||||
Total services | 707.7 | 435.4 | 258.1 | ||||||||
Total revenue | $ | 1,378.5 | $ | 928.1 | $ | 598.2 |