Number of shares | ||
Balance—July 31, 2016 | 8.2 | |
Authorized | 4.1 | |
RSUs, RSAs, and PSAs granted | (4.2 | ) |
RSUs and RSAs forfeited | 0.6 | |
Shares withheld for taxes | 0.1 | |
Balance—July 31, 2017 | 8.8 |
July 31, 2017 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
Certificates of deposit | $ | 5.4 | $ | — | $ | — | $ | 5.4 | |||||||
Corporate debt securities | 346.1 | 0.3 | (0.5 | ) | 345.9 | ||||||||||
U.S. government and agency securities | 1,071.2 | 0.1 | (2.6 | ) | 1,068.7 | ||||||||||
Total | $ | 1,422.7 | $ | 0.4 | $ | (3.1 | ) | $ | 1,420.0 |
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 |
Amount | |||
Cash | $ | 12.4 | |
Goodwill | 75.3 | ||
Identified intangible assets | 19.5 | ||
Net liabilities assumed | (4.1 | ) | |
Total | $ | 103.1 |
Fair Value | Estimated Useful Life | ||||
Developed technology | $ | 16.6 | 8 years | ||
Customer relationships | 2.9 | 8 years | |||
Total | $ | 19.5 |
• | 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 subscription and support 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. |
July 31, 2017 | July 31, 2016 | ||||||||||||||||||||||
Computed under Prior Method | Impact of Commission Adjustment | As Reported | As Previously Reported | Impact of Commission Adjustment | As Adjusted | ||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||||||
Prepaid expenses and other current assets | $ | 95.8 | $ | 73.4 | $ | 169.2 | $ | 84.8 | $ | 54.9 | $ | 139.7 | |||||||||||
Other assets | 97.8 | 71.3 | 169.1 | 64.6 | 50.1 | 114.7 | |||||||||||||||||
Accumulated deficit | $ | (981.4 | ) | $ | 144.7 | $ | (836.7 | ) | $ | (726.6 | ) | $ | 105.0 | $ | (621.6 | ) |
Year Ended July 31, 2017 | |||||||||||
Computed under Prior Method | Impact of Commission Adjustment | As Reported | |||||||||
Consolidated Statements of Operations | |||||||||||
Sales and marketing | $ | 958.4 | $ | (39.3 | ) | $ | 919.1 | ||||
Operating loss | (219.1 | ) | 39.3 | (179.8 | ) | ||||||
Provision for income taxes | 22.9 | (0.4 | ) | 22.5 | |||||||
Net loss | $ | (256.3 | ) | $ | 39.7 | $ | (216.6 | ) | |||
Net loss per share, basic and diluted | $ | (2.83 | ) | $ | 0.44 | $ | (2.39 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 90.6 | — | 90.6 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (256.3 | ) | $ | 39.7 | $ | (216.6 | ) | |||
Comprehensive loss | $ | (260.7 | ) | $ | 39.7 | $ | (221.0 | ) |
Year Ended July 31, 2016 | |||||||||||
As Previously Reported | Impact of Commission Adjustment | As Adjusted | |||||||||
Consolidated Statements of Operations | |||||||||||
Sales and marketing | $ | 776.0 | $ | (32.8 | ) | $ | 743.2 | ||||
Operating loss | (190.1 | ) | 32.8 | (157.3 | ) | ||||||
Provision for income taxes | 20.8 | (0.4 | ) | 20.4 | |||||||
Net loss | $ | (225.9 | ) | $ | 33.2 | $ | (192.7 | ) | |||
Net loss per share, basic and diluted | $ | (2.59 | ) | $ | 0.38 | $ | (2.21 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 87.1 | — | 87.1 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (225.9 | ) | $ | 33.2 | $ | (192.7 | ) | |||
Comprehensive loss | $ | (224.8 | ) | $ | 33.2 | $ | (191.6 | ) |
Year Ended July 31, 2015 | |||||||||||
As Previously Reported | Impact of Commission Adjustment | As Adjusted | |||||||||
Consolidated Statements of Operations | |||||||||||
Sales and marketing | $ | 522.7 | $ | (33.7 | ) | $ | 489.0 | ||||
Operating loss | (133.5 | ) | 33.7 | (99.8 | ) | ||||||
Provision for income taxes | 9.4 | — | 9.4 | ||||||||
Net loss | $ | (165.0 | ) | $ | 33.7 | $ | (131.3 | ) | |||
Net loss per share, basic and diluted | $ | (2.02 | ) | $ | 0.41 | $ | (1.61 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 81.6 | — | 81.6 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (165.0 | ) | $ | 33.7 | $ | (131.3 | ) | |||
Comprehensive loss | $ | (165.0 | ) | $ | 33.7 | $ | (131.3 | ) |
• | Income tax accounting - We adopted the guidance related to the timing of when excess tax benefits are recognized on a modified retrospective basis. As a result, we recorded the cumulative effect of the change as a $3.5 million reduction to accumulated deficit as of August 1, 2016, to reflect the recognition of excess tax benefits in prior years, with a corresponding adjustment to deferred tax assets and long-term tax liabilities. We adopted the guidance related to the recognition of excess tax benefits and deficiencies as income tax expense or benefit on a prospective basis. |
• | Cash flow presentation of excess tax benefits - We elected to adopt the guidance related to the presentation of excess tax benefits in our consolidated statements of cash flows on a retrospective basis, which increased net cash provided by operating activities by $0.5 million and $2.5 million for the years ended July 31, 2016 and 2015, respectively, with corresponding decreases to net cash provided by financing activities. |
• | Forfeitures - We elected to account for forfeitures when they occur and adopted this change on a modified retrospective basis. As a result, we recorded the cumulative effect of the change as a $2.0 million increase to accumulated deficit as of August 1, 2016. |
October 31, 2016 | |||||||||||
As Previously Reported | Impact of Adoption | As Adjusted | |||||||||
Consolidated Balance Sheets | |||||||||||
Other assets | $ | 102.0 | $ | 1.7 | $ | 103.7 | |||||
Other long-term liabilities | 85.8 | (5.6 | ) | 80.2 | |||||||
Common stock and additional paid-in capital | 1,542.2 | 0.9 | 1,543.1 | ||||||||
Accumulated deficit | $ | (683.4 | ) | $ | 6.4 | $ | (677.0 | ) |
Three Months Ended October 31, 2016 | |||||||||||
As Previously Reported | Impact of Adoption | As Adjusted | |||||||||
Consolidated Statements of Operations | |||||||||||
Total cost of revenue(1) | $ | 101.3 | $ | (0.1 | ) | $ | 101.2 | ||||
Total operating expenses(1) | 346.7 | (0.8 | ) | 345.9 | |||||||
Provision for income taxes | 8.4 | (4.0 | ) | 4.4 | |||||||
Net loss | $ | (61.8 | ) | $ | 4.9 | $ | (56.9 | ) | |||
Net loss per share, basic and diluted | $ | (0.69 | ) | $ | 0.06 | $ | (0.63 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 89.8 | — | 89.8 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (61.8 | ) | $ | 4.9 | $ | (56.9 | ) | |||
Comprehensive loss | $ | (64.7 | ) | $ | 4.9 | $ | (59.8 | ) | |||
Consolidated Statements of Cash Flows | |||||||||||
Net cash provided by operating activities | $ | 203.3 | $ | 0.2 | $ | 203.5 | |||||
Net cash used in financing activities | $ | (27.1 | ) | $ | (0.2 | ) | $ | (27.3 | ) |
(1) | Adjustments consist of share-based compensation, which was impacted by our policy election to account for forfeitures when they occur. The impact of adoption on each cost and expense line item within these subtotals was not significant. |
• | removal of the current limitation on contingent revenue may result in revenue being recognized earlier for certain contracts; |
• | term license revenue associated with our virtual firewalls will be recognized upfront; |
• | allocation of revenue related to software due to the removal of the residual method of revenue recognition; and |
• | amortization period for deferred commissions. |
July 31, 2017 | July 31, 2016 | ||||||||||||||||||||||
Computed under Prior Method | Impact of Commission Adjustment | As Reported | As Previously Reported | Impact of Commission Adjustment | As Adjusted | ||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||||||
Prepaid expenses and other current assets | $ | 95.8 | $ | 73.4 | $ | 169.2 | $ | 84.8 | $ | 54.9 | $ | 139.7 | |||||||||||
Other assets | 97.8 | 71.3 | 169.1 | 64.6 | 50.1 | 114.7 | |||||||||||||||||
Accumulated deficit | $ | (981.4 | ) | $ | 144.7 | $ | (836.7 | ) | $ | (726.6 | ) | $ | 105.0 | $ | (621.6 | ) |
Year Ended July 31, 2017 | |||||||||||
Computed under Prior Method | Impact of Commission Adjustment | As Reported | |||||||||
Consolidated Statements of Operations | |||||||||||
Sales and marketing | $ | 958.4 | $ | (39.3 | ) | $ | 919.1 | ||||
Operating loss | (219.1 | ) | 39.3 | (179.8 | ) | ||||||
Provision for income taxes | 22.9 | (0.4 | ) | 22.5 | |||||||
Net loss | $ | (256.3 | ) | $ | 39.7 | $ | (216.6 | ) | |||
Net loss per share, basic and diluted | $ | (2.83 | ) | $ | 0.44 | $ | (2.39 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 90.6 | — | 90.6 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (256.3 | ) | $ | 39.7 | $ | (216.6 | ) | |||
Comprehensive loss | $ | (260.7 | ) | $ | 39.7 | $ | (221.0 | ) |
Year Ended July 31, 2016 | |||||||||||
As Previously Reported | Impact of Commission Adjustment | As Adjusted | |||||||||
Consolidated Statements of Operations | |||||||||||
Sales and marketing | $ | 776.0 | $ | (32.8 | ) | $ | 743.2 | ||||
Operating loss | (190.1 | ) | 32.8 | (157.3 | ) | ||||||
Provision for income taxes | 20.8 | (0.4 | ) | 20.4 | |||||||
Net loss | $ | (225.9 | ) | $ | 33.2 | $ | (192.7 | ) | |||
Net loss per share, basic and diluted | $ | (2.59 | ) | $ | 0.38 | $ | (2.21 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 87.1 | — | 87.1 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (225.9 | ) | $ | 33.2 | $ | (192.7 | ) | |||
Comprehensive loss | $ | (224.8 | ) | $ | 33.2 | $ | (191.6 | ) |
Year Ended July 31, 2015 | |||||||||||
As Previously Reported | Impact of Commission Adjustment | As Adjusted | |||||||||
Consolidated Statements of Operations | |||||||||||
Sales and marketing | $ | 522.7 | $ | (33.7 | ) | $ | 489.0 | ||||
Operating loss | (133.5 | ) | 33.7 | (99.8 | ) | ||||||
Provision for income taxes | 9.4 | — | 9.4 | ||||||||
Net loss | $ | (165.0 | ) | $ | 33.7 | $ | (131.3 | ) | |||
Net loss per share, basic and diluted | $ | (2.02 | ) | $ | 0.41 | $ | (1.61 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 81.6 | — | 81.6 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (165.0 | ) | $ | 33.7 | $ | (131.3 | ) | |||
Comprehensive loss | $ | (165.0 | ) | $ | 33.7 | $ | (131.3 | ) |
Amount | |||
Years ending July 31: | |||
2018 | $ | 31.0 | |
2019 | 50.7 | ||
2020 | 60.1 | ||
2021 | 57.3 | ||
2022 | 53.9 | ||
2023 and thereafter | 264.5 | ||
Committed gross lease payments | 517.5 | ||
Less: proceeds from sublease rental | 2.1 | ||
Net operating lease obligation | $ | 515.4 |
July 31, | |||||||
2017 | 2016 | ||||||
Liability: | |||||||
Principal | $ | 575.0 | $ | 575.0 | |||
Less: debt discount and debt issuance costs, net of amortization | 50.3 | 74.8 | |||||
Net carrying amount | $ | 524.7 | $ | 500.2 | |||
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, | |||||||
2017 | 2016 | ||||||
Liability: | |||||||
Principal | $ | 575.0 | $ | 575.0 | |||
Less: debt discount and debt issuance costs, net of amortization | 50.3 | 74.8 | |||||
Net carrying amount | $ | 524.7 | $ | 500.2 | |||
Equity | $ | 109.8 | $ | 109.8 |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Amortization of debt discount | $ | 22.0 | $ | 21.1 | $ | 20.2 | |||||
Amortization of debt issuance costs | 2.5 | 2.3 | 2.1 | ||||||||
Total interest expense recognized | $ | 24.5 | $ | 23.4 | $ | 22.3 | |||||
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, 2016 | 2.1 | $ | 13.42 | 5.2 | $ | 244.9 | ||||||
Options granted | — | — | ||||||||||
Options forfeited | — | — | ||||||||||
Options exercised | (0.5 | ) | 14.44 | |||||||||
Balance—July 31, 2017 | 1.6 | $ | 13.11 | 4.2 | $ | 190.6 | ||||||
Options exercisable—July 31, 2017 | 1.6 | $ | 13.11 | 4.2 | $ | 190.6 |
RSAs and PSAs 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, 2016 | 1.1 | $ | 170.97 | 6.5 | $ | 130.14 | 1.1 | $ | 852.7 | ||||||||||
Granted(1) | 0.3 | 148.54 | 3.9 | 141.35 | |||||||||||||||
Vested | (0.4 | ) | 170.97 | (3.3 | ) | 119.88 | |||||||||||||
Forfeited | — | — | (0.6 | ) | 139.56 | ||||||||||||||
Balance—July 31, 2017 | 1.0 | $ | 163.55 | 6.5 | $ | 141.16 | 1.3 | $ | 854.1 |
Number of shares | ||
Balance—July 31, 2016 | 8.2 | |
Authorized | 4.1 | |
RSUs, RSAs, and PSAs granted | (4.2 | ) |
RSUs and RSAs forfeited | 0.6 | |
Shares withheld for taxes | 0.1 | |
Balance—July 31, 2017 | 8.8 |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cost of product revenue | $ | 7.3 | $ | 6.2 | $ | 3.9 | |||||
Cost of subscription and support revenue | 56.2 | 40.9 | 20.4 | ||||||||
Research and development | 152.6 | 132.9 | 74.8 | ||||||||
Sales and marketing | 186.5 | 152.4 | 84.1 | ||||||||
General and administrative | 73.1 | 60.5 | 38.2 | ||||||||
Total share-based compensation | $ | 475.7 | $ | 392.9 | $ | 221.4 |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net loss | $ | (216.6 | ) | $ | (192.7 | ) | $ | (131.3 | ) | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 90.6 | 87.1 | 81.6 | ||||||||
Net loss per share, basic and diluted | $ | (2.39 | ) | $ | (2.21 | ) | $ | (1.61 | ) |
Year Ended July 31, | ||||||||
2017 | 2016 | 2015 | ||||||
RSUs | 6.5 | 6.5 | 7.2 | |||||
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 | 1.6 | 2.1 | 3.3 | |||||
RSAs and PSAs | 1.0 | 1.1 | — | |||||
ESPP shares | 0.2 | 0.1 | 0.1 | |||||
Total | 19.7 | 20.2 | 21.0 |
• | 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, 2017 | July 31, 2016 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Commercial paper | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3.0 | $ | — | $ | 3.0 | ||||||||||||||||
Corporate debt securities | — | 159.4 | — | 159.4 | — | 121.4 | — | 121.4 | ||||||||||||||||||||||||
U.S. government and agency securities | — | 471.3 | — | 471.3 | — | 426.8 | — | 426.8 | ||||||||||||||||||||||||
Total short-term investments | — | 630.7 | — | 630.7 | — | 551.2 | — | 551.2 | ||||||||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | — | 5.4 | — | 5.4 | — | 5.4 | — | 5.4 | ||||||||||||||||||||||||
Corporate debt securities | — | 186.5 | — | 186.5 | — | 166.1 | — | 166.1 | ||||||||||||||||||||||||
U.S. government and agency securities | — | 597.4 | — | 597.4 | — | 481.3 | — | 481.3 | ||||||||||||||||||||||||
Total long-term investments | — | 789.3 | — | 789.3 | — | 652.8 | — | 652.8 | ||||||||||||||||||||||||
Total assets measured at fair value | $ | — | $ | 1,420.0 | $ | — | $ | 1,420.0 | $ | — | $ | 1,204.0 | $ | — | $ | 1,204.0 |
• | 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. |
Amount | |||
Balance as of July 31, 2016 | $ | 163.5 | |
Goodwill acquired | 75.3 | ||
Balance as of July 31, 2017 | $ | 238.8 |
July 31, | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Developed technology | $ | 69.7 | $ | (23.8 | ) | $ | 45.9 | $ | 53.1 | $ | (15.4 | ) | $ | 37.7 | |||||||||
Acquired intellectual property | 8.9 | (3.8 | ) | 5.1 | 8.9 | (2.9 | ) | 6.0 | |||||||||||||||
Customer relationships | 2.9 | (0.2 | ) | 2.7 | — | — | — | ||||||||||||||||
Other | 2.4 | (2.4 | ) | — | 2.4 | (2.1 | ) | 0.3 | |||||||||||||||
Total purchased intangible assets | $ | 83.9 | $ | (30.2 | ) | $ | 53.7 | $ | 64.4 | $ | (20.4 | ) | $ | 44.0 |
Amount | |||
Years ending July 31: | |||
2018 | $ | 10.7 | |
2019 | 10.6 | ||
2020 | 10.6 | ||
2021 | 8.9 | ||
2022 | 4.4 | ||
2023 and thereafter | 8.5 | ||
Total future amortization expense | $ | 53.7 |
Year Ended July 31, | |||||||||||
2017 | 2016(1) | 2015(1) | |||||||||
United States | $ | (210.0 | ) | $ | (195.3 | ) | $ | (21.3 | ) | ||
Foreign | 15.9 | 23.0 | (100.6 | ) | |||||||
Total | $ | (194.1 | ) | $ | (172.3 | ) | $ | (121.9 | ) |
(1) | Certain amounts have been adjusted due to our voluntary change in accounting policy for sales commissions. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
Year Ended July 31, | |||||||||||
2017 | 2016(1) | 2015 | |||||||||
Federal: | |||||||||||
Current | $ | 3.4 | $ | 1.9 | $ | 1.8 | |||||
Deferred | — | (0.6 | ) | (3.0 | ) | ||||||
State: | |||||||||||
Current | 0.9 | 1.1 | 0.7 | ||||||||
Deferred | — | (0.1 | ) | (0.4 | ) | ||||||
Foreign: | |||||||||||
Current | 19.7 | 19.1 | 10.7 | ||||||||
Deferred | (1.5 | ) | (1.0 | ) | (0.4 | ) | |||||
Total | $ | 22.5 | $ | 20.4 | $ | 9.4 |
(1) | Certain amounts have been adjusted due to our voluntary change in accounting policy for sales commissions. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
Year Ended July 31, | ||||||||
2017 | 2016(1) | 2015(1) | ||||||
Federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Effect of: | ||||||||
State taxes, net of federal tax benefit | 2.8 | (1.7 | ) | 4.6 | ||||
Foreign income at other than U.S. rates | (14.4 | ) | (7.8 | ) | (6.1 | ) | ||
Change in valuation allowance | (39.4 | ) | (25.4 | ) | (28.8 | ) | ||
Share-based compensation | 1.6 | (15.9 | ) | (13.0 | ) | |||
Amortization of deferred tax charges | (3.6 | ) | (3.4 | ) | (2.8 | ) | ||
Research credits | 10.1 | 11.3 | 8.6 | |||||
Other, net | (3.7 | ) | (3.9 | ) | (5.2 | ) | ||
Total | (11.6 | )% | (11.8 | )% | (7.7 | )% |
(1) | Certain amounts have been adjusted due to our voluntary change in accounting policy for sales commissions. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
July 31, | |||||||
2017 | 2016(1) | ||||||
Deferred tax assets: | |||||||
Accruals and reserves | $ | 35.9 | $ | 43.5 | |||
Deferred revenue | 123.2 | 62.0 | |||||
Net operating loss carryforwards | 245.3 | 5.4 | |||||
Research and development and foreign tax credits | 69.3 | 41.4 | |||||
Share-based compensation | 45.4 | 55.2 | |||||
Gross deferred tax assets | 519.1 | 207.5 | |||||
Valuation allowance | (464.1 | ) | (161.3 | ) | |||
Total deferred tax assets | 55.0 | 46.2 | |||||
Deferred tax liabilities: | |||||||
Fixed assets and intangible assets | (9.1 | ) | (14.2 | ) | |||
Deferred commissions | (36.8 | ) | (27.7 | ) | |||
Other deferred tax liabilities | (4.0 | ) | (2.5 | ) | |||
Total deferred tax liabilities | (49.9 | ) | (44.4 | ) | |||
Total | $ | 5.1 | $ | 1.8 |
(1) | Certain amounts have been adjusted due to our voluntary change in accounting policy for sales commissions. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Unrecognized tax benefits at the beginning of the period | $ | 127.7 | $ | 67.2 | $ | 10.4 | |||||
Additions for tax positions taken in prior years | 3.1 | 25.2 | 6.1 | ||||||||
Reductions for tax positions taken in prior years | — | — | (0.6 | ) | |||||||
Additions for tax positions taken in the current year | 170.5 | 35.3 | 51.3 | ||||||||
Unrecognized tax benefits at the end of the period | $ | 301.3 | $ | 127.7 | $ | 67.2 |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Amortization of debt discount | $ | 22.0 | $ | 21.1 | $ | 20.2 | |||||
Amortization of debt issuance costs | 2.5 | 2.3 | 2.1 | ||||||||
Total interest expense recognized | $ | 24.5 | $ | 23.4 | $ | 22.3 | |||||
Effective interest rate of the liability component | 4.8 | % | 4.8 | % | 4.8 | % |
Amortized Cost | Fair Value | ||||||
Due within one year | $ | 631.6 | $ | 630.7 | |||
Due between one and three years | 791.1 | 789.3 | |||||
Total | $ | 1,422.7 | $ | 1,420.0 |
July 31, 2017 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
Certificates of deposit | $ | 5.4 | $ | — | $ | — | $ | 5.4 | |||||||
Corporate debt securities | 346.1 | 0.3 | (0.5 | ) | 345.9 | ||||||||||
U.S. government and agency securities | 1,071.2 | 0.1 | (2.6 | ) | 1,068.7 | ||||||||||
Total | $ | 1,422.7 | $ | 0.4 | $ | (3.1 | ) | $ | 1,420.0 |
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 |
Amortized Cost | Fair Value | ||||||
Due within one year | $ | 631.6 | $ | 630.7 | |||
Due between one and three years | 791.1 | 789.3 | |||||
Total | $ | 1,422.7 | $ | 1,420.0 |
Year Ended July 31, | |||||||
2017 | 2016 | ||||||
Property and equipment, net: | |||||||
United States | $ | 178.4 | $ | 102.3 | |||
International | 32.7 | 14.9 | |||||
Total property and equipment, net | $ | 211.1 | $ | 117.2 |
October 31, 2016 | |||||||||||
As Previously Reported | Impact of Adoption | As Adjusted | |||||||||
Consolidated Balance Sheets | |||||||||||
Other assets | $ | 102.0 | $ | 1.7 | $ | 103.7 | |||||
Other long-term liabilities | 85.8 | (5.6 | ) | 80.2 | |||||||
Common stock and additional paid-in capital | 1,542.2 | 0.9 | 1,543.1 | ||||||||
Accumulated deficit | $ | (683.4 | ) | $ | 6.4 | $ | (677.0 | ) |
Three Months Ended October 31, 2016 | |||||||||||
As Previously Reported | Impact of Adoption | As Adjusted | |||||||||
Consolidated Statements of Operations | |||||||||||
Total cost of revenue(1) | $ | 101.3 | $ | (0.1 | ) | $ | 101.2 | ||||
Total operating expenses(1) | 346.7 | (0.8 | ) | 345.9 | |||||||
Provision for income taxes | 8.4 | (4.0 | ) | 4.4 | |||||||
Net loss | $ | (61.8 | ) | $ | 4.9 | $ | (56.9 | ) | |||
Net loss per share, basic and diluted | $ | (0.69 | ) | $ | 0.06 | $ | (0.63 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 89.8 | — | 89.8 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (61.8 | ) | $ | 4.9 | $ | (56.9 | ) | |||
Comprehensive loss | $ | (64.7 | ) | $ | 4.9 | $ | (59.8 | ) | |||
Consolidated Statements of Cash Flows | |||||||||||
Net cash provided by operating activities | $ | 203.3 | $ | 0.2 | $ | 203.5 | |||||
Net cash used in financing activities | $ | (27.1 | ) | $ | (0.2 | ) | $ | (27.3 | ) |
(1) | Adjustments consist of share-based compensation, which was impacted by our policy election to account for forfeitures when they occur. The impact of adoption on each cost and expense line item within these subtotals was not significant. |
• | Income tax accounting - We adopted the guidance related to the timing of when excess tax benefits are recognized on a modified retrospective basis. As a result, we recorded the cumulative effect of the change as a $3.5 million reduction to accumulated deficit as of August 1, 2016, to reflect the recognition of excess tax benefits in prior years, with a corresponding adjustment to deferred tax assets and long-term tax liabilities. We adopted the guidance related to the recognition of excess tax benefits and deficiencies as income tax expense or benefit on a prospective basis. |
• | Cash flow presentation of excess tax benefits - We elected to adopt the guidance related to the presentation of excess tax benefits in our consolidated statements of cash flows on a retrospective basis, which increased net cash provided by operating activities by $0.5 million and $2.5 million for the years ended July 31, 2016 and 2015, respectively, with corresponding decreases to net cash provided by financing activities. |
• | Forfeitures - We elected to account for forfeitures when they occur and adopted this change on a modified retrospective basis. As a result, we recorded the cumulative effect of the change as a $2.0 million increase to accumulated deficit as of August 1, 2016. |
October 31, 2016 | |||||||||||
As Previously Reported | Impact of Adoption | As Adjusted | |||||||||
Consolidated Balance Sheets | |||||||||||
Other assets | $ | 102.0 | $ | 1.7 | $ | 103.7 | |||||
Other long-term liabilities | 85.8 | (5.6 | ) | 80.2 | |||||||
Common stock and additional paid-in capital | 1,542.2 | 0.9 | 1,543.1 | ||||||||
Accumulated deficit | $ | (683.4 | ) | $ | 6.4 | $ | (677.0 | ) |
Three Months Ended October 31, 2016 | |||||||||||
As Previously Reported | Impact of Adoption | As Adjusted | |||||||||
Consolidated Statements of Operations | |||||||||||
Total cost of revenue(1) | $ | 101.3 | $ | (0.1 | ) | $ | 101.2 | ||||
Total operating expenses(1) | 346.7 | (0.8 | ) | 345.9 | |||||||
Provision for income taxes | 8.4 | (4.0 | ) | 4.4 | |||||||
Net loss | $ | (61.8 | ) | $ | 4.9 | $ | (56.9 | ) | |||
Net loss per share, basic and diluted | $ | (0.69 | ) | $ | 0.06 | $ | (0.63 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 89.8 | — | 89.8 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (61.8 | ) | $ | 4.9 | $ | (56.9 | ) | |||
Comprehensive loss | $ | (64.7 | ) | $ | 4.9 | $ | (59.8 | ) | |||
Consolidated Statements of Cash Flows | |||||||||||
Net cash provided by operating activities | $ | 203.3 | $ | 0.2 | $ | 203.5 | |||||
Net cash used in financing activities | $ | (27.1 | ) | $ | (0.2 | ) | $ | (27.3 | ) |
(1) | Adjustments consist of share-based compensation, which was impacted by our policy election to account for forfeitures when they occur. The impact of adoption on each cost and expense line item within these subtotals was not significant. |
• | removal of the current limitation on contingent revenue may result in revenue being recognized earlier for certain contracts; |
• | term license revenue associated with our virtual firewalls will be recognized upfront; |
• | allocation of revenue related to software due to the removal of the residual method of revenue recognition; and |
• | amortization period for deferred commissions. |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Interest income | $ | 14.7 | $ | 8.8 | $ | 3.9 | |||||
Foreign currency exchange losses, net | (3.4 | ) | — | (3.0 | ) | ||||||
Other | (1.1 | ) | (0.4 | ) | (0.7 | ) | |||||
Total other income, net | $ | 10.2 | $ | 8.4 | $ | 0.2 |
July 31, | |||||||
2017 | 2016 | ||||||
Computers, equipment, and software | $ | 156.6 | $ | 102.7 | |||
Leasehold improvements | 110.1 | 58.0 | |||||
Demonstration units | 26.3 | 20.1 | |||||
Furniture and fixtures | 20.4 | 14.6 | |||||
Total property and equipment | 313.4 | 195.4 | |||||
Less: accumulated depreciation | (102.3 | ) | (78.2 | ) | |||
Total property and equipment, net | $ | 211.1 | $ | 117.2 |
July 31, | |||||||
2017 | 2016 | ||||||
Computers, equipment, and software | $ | 156.6 | $ | 102.7 | |||
Leasehold improvements | 110.1 | 58.0 | |||||
Demonstration units | 26.3 | 20.1 | |||||
Furniture and fixtures | 20.4 | 14.6 | |||||
Total property and equipment | 313.4 | 195.4 | |||||
Less: accumulated depreciation | (102.3 | ) | (78.2 | ) | |||
Total property and equipment, net | $ | 211.1 | $ | 117.2 |
Three Months Ended | |||||||||||||||
Oct. 31, 2016(1) | Jan. 31, 2017 | Apr. 30, 2017 | Jul. 31, 2017 | ||||||||||||
Revenue: | |||||||||||||||
Product | $ | 163.8 | $ | 168.8 | $ | 164.2 | $ | 212.3 | |||||||
Subscription and support | 234.3 | 253.8 | 267.6 | 296.8 | |||||||||||
Total revenue | 398.1 | 422.6 | 431.8 | 509.1 | |||||||||||
Cost of revenue: | |||||||||||||||
Product | 42.2 | 45.8 | 49.7 | 63.7 | |||||||||||
Subscription and support | 59.0 | 67.4 | 74.0 | 74.8 | |||||||||||
Total cost of revenue | 101.2 | 113.2 | 123.7 | 138.5 | |||||||||||
Total gross profit | 296.9 | 309.4 | 308.1 | 370.6 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 84.2 | 89.9 | 86.0 | 87.3 | |||||||||||
Sales and marketing | 220.1 | 226.7 | 226.9 | 245.4 | |||||||||||
General and administrative | 41.6 | 47.2 | 44.3 | 65.2 | |||||||||||
Total operating expenses | 345.9 | 363.8 | 357.2 | 397.9 | |||||||||||
Operating loss | (49.0 | ) | (54.4 | ) | (49.1 | ) | (27.3 | ) | |||||||
Interest expense | (6.0 | ) | (6.1 | ) | (6.2 | ) | (6.2 | ) | |||||||
Other income, net | 2.5 | 2.7 | 2.1 | 2.9 | |||||||||||
Loss before income taxes | (52.5 | ) | (57.8 | ) | (53.2 | ) | (30.6 | ) | |||||||
Provision for income taxes | 4.4 | 2.8 | 7.7 | 7.6 | |||||||||||
Net loss | $ | (56.9 | ) | $ | (60.6 | ) | $ | (60.9 | ) | $ | (38.2 | ) | |||
Net loss per share, basic and diluted | $ | (0.63 | ) | $ | (0.67 | ) | $ | (0.67 | ) | $ | (0.42 | ) |
(1) | Certain amounts have been adjusted due to our early adoption of new share-based payment accounting guidance. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
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 | |||||||
Subscription and support | 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 | |||||||||||
Subscription and support | 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(1) | 159.5 | 182.4 | 195.9 | 205.4 | |||||||||||
General and administrative | 30.8 | 34.2 | 33.5 | 39.9 | |||||||||||
Total operating expenses(1) | 250.0 | 290.6 | 303.4 | 321.8 | |||||||||||
Operating loss(1) | (32.0 | ) | (50.1 | ) | (52.5 | ) | (22.7 | ) | |||||||
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(1) | (35.6 | ) | (53.4 | ) | (57.3 | ) | (26.0 | ) | |||||||
Provision for income taxes(1) | 4.3 | 3.9 | 6.8 | 5.4 | |||||||||||
Net loss(1) | $ | (39.9 | ) | $ | (57.3 | ) | $ | (64.1 | ) | $ | (31.4 | ) | |||
Net loss per share, basic and diluted(1) | $ | (0.47 | ) | $ | (0.66 | ) | $ | (0.73 | ) | $ | (0.35 | ) |
(1) | Amounts have been adjusted due to our voluntary change in accounting policy for sales commissions. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenue: | |||||||||||
Americas | |||||||||||
United States | $ | 1,155.3 | $ | 901.8 | $ | 593.8 | |||||
Other Americas | 82.1 | 71.4 | 45.6 | ||||||||
Total Americas | 1,237.4 | 973.2 | 639.4 | ||||||||
Europe, the Middle East, and Africa (“EMEA”) | 320.1 | 247.1 | 178.7 | ||||||||
Asia Pacific and Japan (“APAC”) | 204.1 | 158.2 | 110.0 | ||||||||
Total revenue | $ | 1,761.6 | $ | 1,378.5 | $ | 928.1 |
• | 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 subscription and support 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. |
July 31, | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Developed technology | $ | 69.7 | $ | (23.8 | ) | $ | 45.9 | $ | 53.1 | $ | (15.4 | ) | $ | 37.7 | |||||||||
Acquired intellectual property | 8.9 | (3.8 | ) | 5.1 | 8.9 | (2.9 | ) | 6.0 | |||||||||||||||
Customer relationships | 2.9 | (0.2 | ) | 2.7 | — | — | — | ||||||||||||||||
Other | 2.4 | (2.4 | ) | — | 2.4 | (2.1 | ) | 0.3 | |||||||||||||||
Total purchased intangible assets | $ | 83.9 | $ | (30.2 | ) | $ | 53.7 | $ | 64.4 | $ | (20.4 | ) | $ | 44.0 |
Year Ended July 31, | ||||||||
2017 | 2016 | 2015 | ||||||
RSUs | 6.5 | 6.5 | 7.2 | |||||
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 | 1.6 | 2.1 | 3.3 | |||||
RSAs and PSAs | 1.0 | 1.1 | — | |||||
ESPP shares | 0.2 | 0.1 | 0.1 | |||||
Total | 19.7 | 20.2 | 21.0 |
Year Ended July 31, | |||||||||||
2017 | 2016(1) | 2015 | |||||||||
Federal: | |||||||||||
Current | $ | 3.4 | $ | 1.9 | $ | 1.8 | |||||
Deferred | — | (0.6 | ) | (3.0 | ) | ||||||
State: | |||||||||||
Current | 0.9 | 1.1 | 0.7 | ||||||||
Deferred | — | (0.1 | ) | (0.4 | ) | ||||||
Foreign: | |||||||||||
Current | 19.7 | 19.1 | 10.7 | ||||||||
Deferred | (1.5 | ) | (1.0 | ) | (0.4 | ) | |||||
Total | $ | 22.5 | $ | 20.4 | $ | 9.4 |
(1) | Certain amounts have been adjusted due to our voluntary change in accounting policy for sales commissions. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
July 31, | |||||||
2017 | 2016(1) | ||||||
Deferred tax assets: | |||||||
Accruals and reserves | $ | 35.9 | $ | 43.5 | |||
Deferred revenue | 123.2 | 62.0 | |||||
Net operating loss carryforwards | 245.3 | 5.4 | |||||
Research and development and foreign tax credits | 69.3 | 41.4 | |||||
Share-based compensation | 45.4 | 55.2 | |||||
Gross deferred tax assets | 519.1 | 207.5 | |||||
Valuation allowance | (464.1 | ) | (161.3 | ) | |||
Total deferred tax assets | 55.0 | 46.2 | |||||
Deferred tax liabilities: | |||||||
Fixed assets and intangible assets | (9.1 | ) | (14.2 | ) | |||
Deferred commissions | (36.8 | ) | (27.7 | ) | |||
Other deferred tax liabilities | (4.0 | ) | (2.5 | ) | |||
Total deferred tax liabilities | (49.9 | ) | (44.4 | ) | |||
Total | $ | 5.1 | $ | 1.8 |
(1) | Certain amounts have been adjusted due to our voluntary change in accounting policy for sales commissions. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net loss | $ | (216.6 | ) | $ | (192.7 | ) | $ | (131.3 | ) | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 90.6 | 87.1 | 81.6 | ||||||||
Net loss per share, basic and diluted | $ | (2.39 | ) | $ | (2.21 | ) | $ | (1.61 | ) |
Year Ended July 31, | ||||||||
2017 | 2016(1) | 2015(1) | ||||||
Federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Effect of: | ||||||||
State taxes, net of federal tax benefit | 2.8 | (1.7 | ) | 4.6 | ||||
Foreign income at other than U.S. rates | (14.4 | ) | (7.8 | ) | (6.1 | ) | ||
Change in valuation allowance | (39.4 | ) | (25.4 | ) | (28.8 | ) | ||
Share-based compensation | 1.6 | (15.9 | ) | (13.0 | ) | |||
Amortization of deferred tax charges | (3.6 | ) | (3.4 | ) | (2.8 | ) | ||
Research credits | 10.1 | 11.3 | 8.6 | |||||
Other, net | (3.7 | ) | (3.9 | ) | (5.2 | ) | ||
Total | (11.6 | )% | (11.8 | )% | (7.7 | )% |
(1) | Certain amounts have been adjusted due to our voluntary change in accounting policy for sales commissions. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cost of product revenue | $ | 7.3 | $ | 6.2 | $ | 3.9 | |||||
Cost of subscription and support revenue | 56.2 | 40.9 | 20.4 | ||||||||
Research and development | 152.6 | 132.9 | 74.8 | ||||||||
Sales and marketing | 186.5 | 152.4 | 84.1 | ||||||||
General and administrative | 73.1 | 60.5 | 38.2 | ||||||||
Total share-based compensation | $ | 475.7 | $ | 392.9 | $ | 221.4 |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenue: | |||||||||||
Product | $ | 709.1 | $ | 670.8 | $ | 492.7 | |||||
Subscription and support | |||||||||||
Subscription | 550.8 | 357.0 | 212.7 | ||||||||
Support | 501.7 | 350.7 | 222.7 | ||||||||
Total subscription and support | 1,052.5 | 707.7 | 435.4 | ||||||||
Total revenue | $ | 1,761.6 | $ | 1,378.5 | $ | 928.1 |
July 31, 2017 | July 31, 2016 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Commercial paper | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3.0 | $ | — | $ | 3.0 | ||||||||||||||||
Corporate debt securities | — | 159.4 | — | 159.4 | — | 121.4 | — | 121.4 | ||||||||||||||||||||||||
U.S. government and agency securities | — | 471.3 | — | 471.3 | — | 426.8 | — | 426.8 | ||||||||||||||||||||||||
Total short-term investments | — | 630.7 | — | 630.7 | — | 551.2 | — | 551.2 | ||||||||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | — | 5.4 | — | 5.4 | — | 5.4 | — | 5.4 | ||||||||||||||||||||||||
Corporate debt securities | — | 186.5 | — | 186.5 | — | 166.1 | — | 166.1 | ||||||||||||||||||||||||
U.S. government and agency securities | — | 597.4 | — | 597.4 | — | 481.3 | — | 481.3 | ||||||||||||||||||||||||
Total long-term investments | — | 789.3 | — | 789.3 | — | 652.8 | — | 652.8 | ||||||||||||||||||||||||
Total assets measured at fair value | $ | — | $ | 1,420.0 | $ | — | $ | 1,420.0 | $ | — | $ | 1,204.0 | $ | — | $ | 1,204.0 |
Fair Value | Estimated Useful Life | ||||
Developed technology | $ | 16.6 | 8 years | ||
Customer relationships | 2.9 | 8 years | |||
Total | $ | 19.5 |
Amount | |||
Years ending July 31: | |||
2018 | $ | 31.0 | |
2019 | 50.7 | ||
2020 | 60.1 | ||
2021 | 57.3 | ||
2022 | 53.9 | ||
2023 and thereafter | 264.5 | ||
Committed gross lease payments | 517.5 | ||
Less: proceeds from sublease rental | 2.1 | ||
Net operating lease obligation | $ | 515.4 |
Amount | |||
Balance as of July 31, 2016 | $ | 163.5 | |
Goodwill acquired | 75.3 | ||
Balance as of July 31, 2017 | $ | 238.8 |
Year Ended July 31, | |||||||||||
2017 | 2016(1) | 2015(1) | |||||||||
United States | $ | (210.0 | ) | $ | (195.3 | ) | $ | (21.3 | ) | ||
Foreign | 15.9 | 23.0 | (100.6 | ) | |||||||
Total | $ | (194.1 | ) | $ | (172.3 | ) | $ | (121.9 | ) |
(1) | Certain amounts have been adjusted due to our voluntary change in accounting policy for sales commissions. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
July 31, 2017 | July 31, 2016 | ||||||||||||||||||||||
Computed under Prior Method | Impact of Commission Adjustment | As Reported | As Previously Reported | Impact of Commission Adjustment | As Adjusted | ||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||||||
Prepaid expenses and other current assets | $ | 95.8 | $ | 73.4 | $ | 169.2 | $ | 84.8 | $ | 54.9 | $ | 139.7 | |||||||||||
Other assets | 97.8 | 71.3 | 169.1 | 64.6 | 50.1 | 114.7 | |||||||||||||||||
Accumulated deficit | $ | (981.4 | ) | $ | 144.7 | $ | (836.7 | ) | $ | (726.6 | ) | $ | 105.0 | $ | (621.6 | ) |
Year Ended July 31, 2017 | |||||||||||
Computed under Prior Method | Impact of Commission Adjustment | As Reported | |||||||||
Consolidated Statements of Operations | |||||||||||
Sales and marketing | $ | 958.4 | $ | (39.3 | ) | $ | 919.1 | ||||
Operating loss | (219.1 | ) | 39.3 | (179.8 | ) | ||||||
Provision for income taxes | 22.9 | (0.4 | ) | 22.5 | |||||||
Net loss | $ | (256.3 | ) | $ | 39.7 | $ | (216.6 | ) | |||
Net loss per share, basic and diluted | $ | (2.83 | ) | $ | 0.44 | $ | (2.39 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 90.6 | — | 90.6 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (256.3 | ) | $ | 39.7 | $ | (216.6 | ) | |||
Comprehensive loss | $ | (260.7 | ) | $ | 39.7 | $ | (221.0 | ) |
Year Ended July 31, 2016 | |||||||||||
As Previously Reported | Impact of Commission Adjustment | As Adjusted | |||||||||
Consolidated Statements of Operations | |||||||||||
Sales and marketing | $ | 776.0 | $ | (32.8 | ) | $ | 743.2 | ||||
Operating loss | (190.1 | ) | 32.8 | (157.3 | ) | ||||||
Provision for income taxes | 20.8 | (0.4 | ) | 20.4 | |||||||
Net loss | $ | (225.9 | ) | $ | 33.2 | $ | (192.7 | ) | |||
Net loss per share, basic and diluted | $ | (2.59 | ) | $ | 0.38 | $ | (2.21 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 87.1 | — | 87.1 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (225.9 | ) | $ | 33.2 | $ | (192.7 | ) | |||
Comprehensive loss | $ | (224.8 | ) | $ | 33.2 | $ | (191.6 | ) |
Year Ended July 31, 2015 | |||||||||||
As Previously Reported | Impact of Commission Adjustment | As Adjusted | |||||||||
Consolidated Statements of Operations | |||||||||||
Sales and marketing | $ | 522.7 | $ | (33.7 | ) | $ | 489.0 | ||||
Operating loss | (133.5 | ) | 33.7 | (99.8 | ) | ||||||
Provision for income taxes | 9.4 | — | 9.4 | ||||||||
Net loss | $ | (165.0 | ) | $ | 33.7 | $ | (131.3 | ) | |||
Net loss per share, basic and diluted | $ | (2.02 | ) | $ | 0.41 | $ | (1.61 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 81.6 | — | 81.6 | ||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||
Net loss | $ | (165.0 | ) | $ | 33.7 | $ | (131.3 | ) | |||
Comprehensive loss | $ | (165.0 | ) | $ | 33.7 | $ | (131.3 | ) |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Interest income | $ | 14.7 | $ | 8.8 | $ | 3.9 | |||||
Foreign currency exchange losses, net | (3.4 | ) | — | (3.0 | ) | ||||||
Other | (1.1 | ) | (0.4 | ) | (0.7 | ) | |||||
Total other income, net | $ | 10.2 | $ | 8.4 | $ | 0.2 |
Three Months Ended | |||||||||||||||
Oct. 31, 2016(1) | Jan. 31, 2017 | Apr. 30, 2017 | Jul. 31, 2017 | ||||||||||||
Revenue: | |||||||||||||||
Product | $ | 163.8 | $ | 168.8 | $ | 164.2 | $ | 212.3 | |||||||
Subscription and support | 234.3 | 253.8 | 267.6 | 296.8 | |||||||||||
Total revenue | 398.1 | 422.6 | 431.8 | 509.1 | |||||||||||
Cost of revenue: | |||||||||||||||
Product | 42.2 | 45.8 | 49.7 | 63.7 | |||||||||||
Subscription and support | 59.0 | 67.4 | 74.0 | 74.8 | |||||||||||
Total cost of revenue | 101.2 | 113.2 | 123.7 | 138.5 | |||||||||||
Total gross profit | 296.9 | 309.4 | 308.1 | 370.6 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 84.2 | 89.9 | 86.0 | 87.3 | |||||||||||
Sales and marketing | 220.1 | 226.7 | 226.9 | 245.4 | |||||||||||
General and administrative | 41.6 | 47.2 | 44.3 | 65.2 | |||||||||||
Total operating expenses | 345.9 | 363.8 | 357.2 | 397.9 | |||||||||||
Operating loss | (49.0 | ) | (54.4 | ) | (49.1 | ) | (27.3 | ) | |||||||
Interest expense | (6.0 | ) | (6.1 | ) | (6.2 | ) | (6.2 | ) | |||||||
Other income, net | 2.5 | 2.7 | 2.1 | 2.9 | |||||||||||
Loss before income taxes | (52.5 | ) | (57.8 | ) | (53.2 | ) | (30.6 | ) | |||||||
Provision for income taxes | 4.4 | 2.8 | 7.7 | 7.6 | |||||||||||
Net loss | $ | (56.9 | ) | $ | (60.6 | ) | $ | (60.9 | ) | $ | (38.2 | ) | |||
Net loss per share, basic and diluted | $ | (0.63 | ) | $ | (0.67 | ) | $ | (0.67 | ) | $ | (0.42 | ) |
(1) | Certain amounts have been adjusted due to our early adoption of new share-based payment accounting guidance. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
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 | |||||||
Subscription and support | 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 | |||||||||||
Subscription and support | 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(1) | 159.5 | 182.4 | 195.9 | 205.4 | |||||||||||
General and administrative | 30.8 | 34.2 | 33.5 | 39.9 | |||||||||||
Total operating expenses(1) | 250.0 | 290.6 | 303.4 | 321.8 | |||||||||||
Operating loss(1) | (32.0 | ) | (50.1 | ) | (52.5 | ) | (22.7 | ) | |||||||
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(1) | (35.6 | ) | (53.4 | ) | (57.3 | ) | (26.0 | ) | |||||||
Provision for income taxes(1) | 4.3 | 3.9 | 6.8 | 5.4 | |||||||||||
Net loss(1) | $ | (39.9 | ) | $ | (57.3 | ) | $ | (64.1 | ) | $ | (31.4 | ) | |||
Net loss per share, basic and diluted(1) | $ | (0.47 | ) | $ | (0.66 | ) | $ | (0.73 | ) | $ | (0.35 | ) |
(1) | Amounts have been adjusted due to our voluntary change in accounting policy for sales commissions. Refer to Note 1. Description of Business and Summary of Significant Accounting Policies for more information. |
Amount | |||
Cash | $ | 12.4 | |
Goodwill | 75.3 | ||
Identified intangible assets | 19.5 | ||
Net liabilities assumed | (4.1 | ) | |
Total | $ | 103.1 |
Options Outstanding | ||||||||||||
Number of Shares | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||
Balance—July 31, 2016 | 2.1 | $ | 13.42 | 5.2 | $ | 244.9 | ||||||
Options granted | — | — | ||||||||||
Options forfeited | — | — | ||||||||||
Options exercised | (0.5 | ) | 14.44 | |||||||||
Balance—July 31, 2017 | 1.6 | $ | 13.11 | 4.2 | $ | 190.6 | ||||||
Options exercisable—July 31, 2017 | 1.6 | $ | 13.11 | 4.2 | $ | 190.6 |
RSAs and PSAs 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, 2016 | 1.1 | $ | 170.97 | 6.5 | $ | 130.14 | 1.1 | $ | 852.7 | ||||||||||
Granted(1) | 0.3 | 148.54 | 3.9 | 141.35 | |||||||||||||||
Vested | (0.4 | ) | 170.97 | (3.3 | ) | 119.88 | |||||||||||||
Forfeited | — | — | (0.6 | ) | 139.56 | ||||||||||||||
Balance—July 31, 2017 | 1.0 | $ | 163.55 | 6.5 | $ | 141.16 | 1.3 | $ | 854.1 |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Unrecognized tax benefits at the beginning of the period | $ | 127.7 | $ | 67.2 | $ | 10.4 | |||||
Additions for tax positions taken in prior years | 3.1 | 25.2 | 6.1 | ||||||||
Reductions for tax positions taken in prior years | — | — | (0.6 | ) | |||||||
Additions for tax positions taken in the current year | 170.5 | 35.3 | 51.3 | ||||||||
Unrecognized tax benefits at the end of the period | $ | 301.3 | $ | 127.7 | $ | 67.2 |
Amount | |||
Years ending July 31: | |||
2018 | $ | 10.7 | |
2019 | 10.6 | ||
2020 | 10.6 | ||
2021 | 8.9 | ||
2022 | 4.4 | ||
2023 and thereafter | 8.5 | ||
Total future amortization expense | $ | 53.7 |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenue: | |||||||||||
Americas | |||||||||||
United States | $ | 1,155.3 | $ | 901.8 | $ | 593.8 | |||||
Other Americas | 82.1 | 71.4 | 45.6 | ||||||||
Total Americas | 1,237.4 | 973.2 | 639.4 | ||||||||
Europe, the Middle East, and Africa (“EMEA”) | 320.1 | 247.1 | 178.7 | ||||||||
Asia Pacific and Japan (“APAC”) | 204.1 | 158.2 | 110.0 | ||||||||
Total revenue | $ | 1,761.6 | $ | 1,378.5 | $ | 928.1 |
Year Ended July 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenue: | |||||||||||
Product | $ | 709.1 | $ | 670.8 | $ | 492.7 | |||||
Subscription and support | |||||||||||
Subscription | 550.8 | 357.0 | 212.7 | ||||||||
Support | 501.7 | 350.7 | 222.7 | ||||||||
Total subscription and support | 1,052.5 | 707.7 | 435.4 | ||||||||
Total revenue | $ | 1,761.6 | $ | 1,378.5 | $ | 928.1 |
Year Ended July 31, | |||||||
2017 | 2016 | ||||||
Property and equipment, net: | |||||||
United States | $ | 178.4 | $ | 102.3 | |||
International | 32.7 | 14.9 | |||||
Total property and equipment, net | $ | 211.1 | $ | 117.2 |