Computer hardware | 3 years | |
Purchased software | 3 years | |
Equipment and machinery | 3 to 5 years | |
Furniture and fixtures | 5 years | |
Leasehold improvements | Shorter of 10 years or remaining lease term |
i. | capable of being distinct, whereby the customer can benefit from the service or product either on its own or together with other resources that are readily available from the Company or third parties, and |
ii. | distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract. |
i. | On-premise software licenses related to term or perpetual agreements; |
ii. | Maintenance activities that consist of email and phone support, bug fixes, and unspecified software updates and upgrades released when, and if, available during the maintenance term; |
iii. | Subscription services related to the Company\u2019s Software-as-a-Service (\u201cSaaS\u201d) offerings, including hosting; and |
iv. | Services related to the implementation and configuration of the Company\u2019s software, reimbursable travel, and training. |
Balances reported as of July 31, 2018 | Cumulative effect adjustment due to adoption of ASC 606 | Adjusted beginning balance as of August 1, 2018 | |||||||||
Unbilled accounts receivable, net | $ | \u2014 | $ | 28,762 | $ | 28,762 | |||||
Contract costs, net | \u2014 | 12,932 | 12,932 | ||||||||
Deferred tax asset, net | 90,369 | (13,351 | ) | 77,018 | |||||||
Prepaid expenses and other assets | 52,989 | (239 | ) | 52,750 | |||||||
Other liabilities | (21,054 | ) | 7,055 | (13,999 | ) | ||||||
Deferred revenue, net | (150,865 | ) | 9,180 | (141,685 | ) | ||||||
Retained earnings | (124,976 | ) | (44,339 | ) | (169,315 | ) |
As Reported | Change | As if presented under ASC 605 | |||||||||
Accounts receivable, net | $ | 138,443 | $ | 2,663 | $ | 141,106 | |||||
Unbilled accounts receivable, net | 46,103 | (46,103 | ) | \u2014 | |||||||
Contract costs, net(1) | 30,390 | (30,390 | ) | \u2014 | |||||||
Deferred tax asset, net | 90,308 | 51,987 | 142,295 | ||||||||
Prepaid expenses and other assets | 50,730 | (503 | ) | 50,227 | |||||||
Other liabilities | (35,989 | ) | 1,605 | (34,384 | ) | ||||||
Deferred revenue, net | (131,831 | ) | (156,376 | ) | (288,207 | ) | |||||
Retained earnings | (190,047 | ) | 177,575 | (12,472 | ) |
As Reported | Change | As if presented under ASC 605 | |||||||||
Revenue: | |||||||||||
License and subscription | $ | 385,322 | $ | (169,980 | ) | $ | 215,342 | ||||
Maintenance | 85,424 | 1,505 | 86,929 | ||||||||
Services | 248,768 | 5,769 | 254,537 | ||||||||
Total revenue | 719,514 | (162,706 | ) | 556,808 | |||||||
Total cost of revenue | 324,350 | (7,494 | ) | 316,856 | |||||||
Gross profit | 395,164 | (155,212 | ) | 239,952 | |||||||
Total operating expenses | 393,693 | 17,547 | 411,240 | ||||||||
Income (loss) from operations | 1,471 | (172,759 | ) | (171,288 | ) | ||||||
Other income (expense), net | 10,981 | 352 | 11,333 | ||||||||
Benefit from income taxes | (8,280 | ) | (39,170 | ) | (47,450 | ) | |||||
Net income (loss) | $ | 20,732 | $ | (133,237 | ) | $ | (112,505 | ) | |||
Diluted net income (loss) per share | $ | 0.25 | $ | (1.63 | ) | $ | (1.38 | ) |
Computer hardware | 3 years | |
Purchased software | 3 years | |
Equipment and machinery | 3 to 5 years | |
Furniture and fixtures | 5 years | |
Leasehold improvements | Shorter of 10 years or remaining lease term |
Computer hardware | 3 years | |
Purchased software | 3 years | |
Equipment and machinery | 3 to 5 years | |
Furniture and fixtures | 5 years | |
Leasehold improvements | Shorter of 10 years or remaining lease term |
i. | capable of being distinct, whereby the customer can benefit from the service or product either on its own or together with other resources that are readily available from the Company or third parties, and |
ii. | distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract. |
i. | On-premise software licenses related to term or perpetual agreements; |
ii. | Maintenance activities that consist of email and phone support, bug fixes, and unspecified software updates and upgrades released when, and if, available during the maintenance term; |
iii. | Subscription services related to the Company\u2019s Software-as-a-Service (\u201cSaaS\u201d) offerings, including hosting; and |
iv. | Services related to the implementation and configuration of the Company\u2019s software, reimbursable travel, and training. |
Balances reported as of July 31, 2018 | Cumulative effect adjustment due to adoption of ASC 606 | Adjusted beginning balance as of August 1, 2018 | |||||||||
Unbilled accounts receivable, net | $ | \u2014 | $ | 28,762 | $ | 28,762 | |||||
Contract costs, net | \u2014 | 12,932 | 12,932 | ||||||||
Deferred tax asset, net | 90,369 | (13,351 | ) | 77,018 | |||||||
Prepaid expenses and other assets | 52,989 | (239 | ) | 52,750 | |||||||
Other liabilities | (21,054 | ) | 7,055 | (13,999 | ) | ||||||
Deferred revenue, net | (150,865 | ) | 9,180 | (141,685 | ) | ||||||
Retained earnings | (124,976 | ) | (44,339 | ) | (169,315 | ) |
As Reported | Change | As if presented under ASC 605 | |||||||||
Accounts receivable, net | $ | 138,443 | $ | 2,663 | $ | 141,106 | |||||
Unbilled accounts receivable, net | 46,103 | (46,103 | ) | \u2014 | |||||||
Contract costs, net(1) | 30,390 | (30,390 | ) | \u2014 | |||||||
Deferred tax asset, net | 90,308 | 51,987 | 142,295 | ||||||||
Prepaid expenses and other assets | 50,730 | (503 | ) | 50,227 | |||||||
Other liabilities | (35,989 | ) | 1,605 | (34,384 | ) | ||||||
Deferred revenue, net | (131,831 | ) | (156,376 | ) | (288,207 | ) | |||||
Retained earnings | (190,047 | ) | 177,575 | (12,472 | ) |
As Reported | Change | As if presented under ASC 605 | |||||||||
Revenue: | |||||||||||
License and subscription | $ | 385,322 | $ | (169,980 | ) | $ | 215,342 | ||||
Maintenance | 85,424 | 1,505 | 86,929 | ||||||||
Services | 248,768 | 5,769 | 254,537 | ||||||||
Total revenue | 719,514 | (162,706 | ) | 556,808 | |||||||
Total cost of revenue | 324,350 | (7,494 | ) | 316,856 | |||||||
Gross profit | 395,164 | (155,212 | ) | 239,952 | |||||||
Total operating expenses | 393,693 | 17,547 | 411,240 | ||||||||
Income (loss) from operations | 1,471 | (172,759 | ) | (171,288 | ) | ||||||
Other income (expense), net | 10,981 | 352 | 11,333 | ||||||||
Benefit from income taxes | (8,280 | ) | (39,170 | ) | (47,450 | ) | |||||
Net income (loss) | $ | 20,732 | $ | (133,237 | ) | $ | (112,505 | ) | |||
Diluted net income (loss) per share | $ | 0.25 | $ | (1.63 | ) | $ | (1.38 | ) |
License and subscription | Maintenance | Services | Total | |||||||||
United States | $ | 225,985 | $ | 53,877 | $ | 166,724 | $ | 446,586 | ||||
Canada | 28,658 | 8,842 | 9,469 | 46,969 | ||||||||
Other Americas | 6,576 | 4,450 | 7,092 | 18,118 | ||||||||
Total Americas | 261,219 | 67,169 | 183,285 | 511,673 | ||||||||
United Kingdom | 23,901 | 4,591 | 11,504 | 39,996 | ||||||||
Other EMEA | 52,121 | 7,116 | 37,153 | 96,390 | ||||||||
Total EMEA | 76,022 | 11,707 | 48,657 | 136,386 | ||||||||
Total APAC | 48,081 | 6,548 | 16,826 | 71,455 | ||||||||
Total revenue | 385,322 | 85,424 | 248,768 | 719,514 |
\u00a0License and subscription | |||
Term license | $ | 318,142 | |
Subscription | 65,050 | ||
Perpetual license | 2,130 | ||
\u00a0Maintenance | 85,424 | ||
\u00a0Services | 248,768 | ||
\u00a0Total revenue | $ | 719,514 |
Beginning balance as of August 1, 2018 as adjusted | Ending balance as of July 31, 2019 as reported | ||||||
Unbilled accounts receivable, net | $ | 28,762 | $ | 46,103 | |||
Contract costs, net(1) | 12,932 | 30,390 | |||||
Deferred revenue, net | (141,685 | ) | (131,831 | ) |
License and subscription | Maintenance | Services | Total | |||||||||
United States | $ | 225,985 | $ | 53,877 | $ | 166,724 | $ | 446,586 | ||||
Canada | 28,658 | 8,842 | 9,469 | 46,969 | ||||||||
Other Americas | 6,576 | 4,450 | 7,092 | 18,118 | ||||||||
Total Americas | 261,219 | 67,169 | 183,285 | 511,673 | ||||||||
United Kingdom | 23,901 | 4,591 | 11,504 | 39,996 | ||||||||
Other EMEA | 52,121 | 7,116 | 37,153 | 96,390 | ||||||||
Total EMEA | 76,022 | 11,707 | 48,657 | 136,386 | ||||||||
Total APAC | 48,081 | 6,548 | 16,826 | 71,455 | ||||||||
Total revenue | 385,322 | 85,424 | 248,768 | 719,514 |
\u00a0License and subscription | |||
Term license | $ | 318,142 | |
Subscription | 65,050 | ||
Perpetual license | 2,130 | ||
\u00a0Maintenance | 85,424 | ||
\u00a0Services | 248,768 | ||
\u00a0Total revenue | $ | 719,514 |
Beginning balance as of August 1, 2018 as adjusted | Ending balance as of July 31, 2019 as reported | ||||||
Unbilled accounts receivable, net | $ | 28,762 | $ | 46,103 | |||
Contract costs, net(1) | 12,932 | 30,390 | |||||
Deferred revenue, net | (141,685 | ) | (131,831 | ) |
July 31, 2019 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Government agency securities | $ | 55,904 | $ | 4 | $ | (29 | ) | $ | 55,879 | ||||||
Commercial paper | 239,333 | \u2014 | \u2014 | 239,333 | |||||||||||
Corporate bonds | 666,087 | 1,612 | (111 | ) | 667,588 | ||||||||||
U.S. Government bonds | 130,530 | 94 | (29 | ) | 130,595 | ||||||||||
Certificates of deposit | 50,796 | \u2014 | \u2014 | 50,796 | |||||||||||
Money market funds | 115,711 | \u2014 | \u2014 | 115,711 | |||||||||||
Total | $ | 1,258,361 | $ | 1,710 | $ | (169 | ) | $ | 1,259,902 |
July\u00a031, 2018 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Government agency securities | $ | 9,000 | $ | \u2014 | $ | (27 | ) | $ | 8,973 | ||||||
Commercial paper | 471,966 | 4 | (141 | ) | 471,829 | ||||||||||
Corporate bonds | 441,540 | 76 | (764 | ) | 440,852 | ||||||||||
U.S. Government bonds | 89,986 | \u2014 | (55 | ) | 89,931 | ||||||||||
Certificates of deposit | 81,985 | 53 | (8 | ) | 82,030 | ||||||||||
Money market funds | 90,766 | \u2014 | \u2014 | 90,766 | |||||||||||
Total | $ | 1,185,243 | $ | 133 | $ | (995 | ) | $ | 1,184,381 |
July 31, 2019 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
U.S. Government agency securities | $ | 40,707 | $ | (29 | ) | $ | \u2014 | $ | \u2014 | $ | 40,707 | $ | (29 | ) | |||||||||
Corporate bonds | 122,337 | (105 | ) | 9,345 | (6 | ) | 131,682 | (111 | ) | ||||||||||||||
U.S. Government bonds | 53,876 | (29 | ) | \u2014 | \u2014 | 53,876 | (29 | ) | |||||||||||||||
Total | $ | 216,920 | $ | (163 | ) | $ | 9,345 | $ | (6 | ) | $ | 226,265 | $ | (169 | ) |
July\u00a031, 2019 | |||||||||||
Less Than 12 Months | 12 to 36 Months | Total | |||||||||
U.S. Government agency securities | $ | 39,166 | $ | 16,713 | $ | 55,879 | |||||
Commercial paper | 239,333 | \u2014 | 239,333 | ||||||||
Corporate bonds | 481,568 | 186,020 | 667,588 | ||||||||
U.S. Government bonds | 123,600 | 6,995 | 130,595 | ||||||||
Certificates of deposit | 47,000 | 3,796 | 50,796 | ||||||||
Money market funds | 115,711 | \u2014 | 115,711 | ||||||||
Total | $ | 1,046,378 | $ | 213,524 | $ | 1,259,902 |
July 31, 2019 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents: | |||||||||||||||
Commercial paper | $ | \u2014 | $ | 56,132 | $ | \u2014 | $ | 56,132 | |||||||
Corporate bonds | \u2014 | 4,398 | \u2014 | 4,398 | |||||||||||
Money market funds | 115,712 | \u2014 | \u2014 | 115,712 | |||||||||||
Total cash equivalents | 115,712 | 60,530 | \u2014 | 176,242 | |||||||||||
Short-term investments: | |||||||||||||||
U.S. Government agency securities | \u2014 | 39,166 | \u2014 | 39,166 | |||||||||||
Commercial paper | \u2014 | 183,201 | \u2014 | 183,201 | |||||||||||
Corporate bonds | \u2014 | 477,169 | \u2014 | 477,169 | |||||||||||
U.S. Government bonds | \u2014 | 123,600 | \u2014 | 123,600 | |||||||||||
Certificates of deposit | \u2014 | 47,000 | \u2014 | 47,000 | |||||||||||
Total short-term investments | \u2014 | 870,136 | \u2014 | 870,136 | |||||||||||
Long-term investments: | |||||||||||||||
U.S. Government agency securities | \u2014 | 16,713 | \u2014 | 16,713 | |||||||||||
Corporate bonds | \u2014 | 186,021 | \u2014 | 186,021 | |||||||||||
U.S. Government bonds | \u2014 | 6,994 | \u2014 | 6,994 | |||||||||||
Certificates of deposit | \u2014 | 3,796 | \u2014 | 3,796 | |||||||||||
Total long-term investments | \u2014 | 213,524 | \u2014 | 213,524 | |||||||||||
Total | $ | 115,712 | $ | 1,144,190 | $ | \u2014 | $ | 1,259,902 |
July 31, 2018 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash and cash equivalents: | |||||||||||||||
Commercial paper | $ | \u2014 | $ | 269,654 | $ | \u2014 | $ | 269,654 | |||||||
Corporate bonds | \u2014 | 3,001 | \u2014 | 3,001 | |||||||||||
Money market funds | 90,766 | \u2014 | \u2014 | 90,766 | |||||||||||
Total cash equivalents | 90,766 | 272,655 | \u2014 | $ | 363,421 | ||||||||||
Short-term investments: | |||||||||||||||
U.S. Government agency securities | \u2014 | 1,999 | \u2014 | 1,999 | |||||||||||
Commercial paper | \u2014 | 195,376 | \u2014 | 195,376 | |||||||||||
Corporate bonds | \u2014 | 281,696 | \u2014 | 281,696 | |||||||||||
U. S. Government bonds | \u2014 | 89,931 | \u2014 | 89,931 | |||||||||||
Certificates of deposit | \u2014 | 61,006 | \u2014 | 61,006 | |||||||||||
Total short-term investments | \u2014 | 630,008 | \u2014 | 630,008 | |||||||||||
Long-term investments: | |||||||||||||||
U.S. Government agency securities | \u2014 | 6,974 | \u2014 | 6,974 | |||||||||||
Commercial paper | \u2014 | 6,799 | \u2014 | 6,799 | |||||||||||
Corporate bonds | \u2014 | 151,291 | \u2014 | 151,291 | |||||||||||
U.S. Government bonds | \u2014 | 4,864 | \u2014 | 4,864 | |||||||||||
Certificates of deposit | \u2014 | 21,024 | \u2014 | 21,024 | |||||||||||
Total long-term investments | \u2014 | 190,952 | \u2014 | 190,952 | |||||||||||
Total | $ | 90,766 | $ | 1,093,615 | $ | \u2014 | $ | 1,184,381 |
July 31, 2019 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Government agency securities | $ | 55,904 | $ | 4 | $ | (29 | ) | $ | 55,879 | ||||||
Commercial paper | 239,333 | \u2014 | \u2014 | 239,333 | |||||||||||
Corporate bonds | 666,087 | 1,612 | (111 | ) | 667,588 | ||||||||||
U.S. Government bonds | 130,530 | 94 | (29 | ) | 130,595 | ||||||||||
Certificates of deposit | 50,796 | \u2014 | \u2014 | 50,796 | |||||||||||
Money market funds | 115,711 | \u2014 | \u2014 | 115,711 | |||||||||||
Total | $ | 1,258,361 | $ | 1,710 | $ | (169 | ) | $ | 1,259,902 |
July\u00a031, 2018 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Government agency securities | $ | 9,000 | $ | \u2014 | $ | (27 | ) | $ | 8,973 | ||||||
Commercial paper | 471,966 | 4 | (141 | ) | 471,829 | ||||||||||
Corporate bonds | 441,540 | 76 | (764 | ) | 440,852 | ||||||||||
U.S. Government bonds | 89,986 | \u2014 | (55 | ) | 89,931 | ||||||||||
Certificates of deposit | 81,985 | 53 | (8 | ) | 82,030 | ||||||||||
Money market funds | 90,766 | \u2014 | \u2014 | 90,766 | |||||||||||
Total | $ | 1,185,243 | $ | 133 | $ | (995 | ) | $ | 1,184,381 |
July 31, 2019 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
U.S. Government agency securities | $ | 40,707 | $ | (29 | ) | $ | \u2014 | $ | \u2014 | $ | 40,707 | $ | (29 | ) | |||||||||
Corporate bonds | 122,337 | (105 | ) | 9,345 | (6 | ) | 131,682 | (111 | ) | ||||||||||||||
U.S. Government bonds | 53,876 | (29 | ) | \u2014 | \u2014 | 53,876 | (29 | ) | |||||||||||||||
Total | $ | 216,920 | $ | (163 | ) | $ | 9,345 | $ | (6 | ) | $ | 226,265 | $ | (169 | ) |
July\u00a031, 2019 | |||||||||||
Less Than 12 Months | 12 to 36 Months | Total | |||||||||
U.S. Government agency securities | $ | 39,166 | $ | 16,713 | $ | 55,879 | |||||
Commercial paper | 239,333 | \u2014 | 239,333 | ||||||||
Corporate bonds | 481,568 | 186,020 | 667,588 | ||||||||
U.S. Government bonds | 123,600 | 6,995 | 130,595 | ||||||||
Certificates of deposit | 47,000 | 3,796 | 50,796 | ||||||||
Money market funds | 115,711 | \u2014 | 115,711 | ||||||||
Total | $ | 1,046,378 | $ | 213,524 | $ | 1,259,902 |
July 31, 2019 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents: | |||||||||||||||
Commercial paper | $ | \u2014 | $ | 56,132 | $ | \u2014 | $ | 56,132 | |||||||
Corporate bonds | \u2014 | 4,398 | \u2014 | 4,398 | |||||||||||
Money market funds | 115,712 | \u2014 | \u2014 | 115,712 | |||||||||||
Total cash equivalents | 115,712 | 60,530 | \u2014 | 176,242 | |||||||||||
Short-term investments: | |||||||||||||||
U.S. Government agency securities | \u2014 | 39,166 | \u2014 | 39,166 | |||||||||||
Commercial paper | \u2014 | 183,201 | \u2014 | 183,201 | |||||||||||
Corporate bonds | \u2014 | 477,169 | \u2014 | 477,169 | |||||||||||
U.S. Government bonds | \u2014 | 123,600 | \u2014 | 123,600 | |||||||||||
Certificates of deposit | \u2014 | 47,000 | \u2014 | 47,000 | |||||||||||
Total short-term investments | \u2014 | 870,136 | \u2014 | 870,136 | |||||||||||
Long-term investments: | |||||||||||||||
U.S. Government agency securities | \u2014 | 16,713 | \u2014 | 16,713 | |||||||||||
Corporate bonds | \u2014 | 186,021 | \u2014 | 186,021 | |||||||||||
U.S. Government bonds | \u2014 | 6,994 | \u2014 | 6,994 | |||||||||||
Certificates of deposit | \u2014 | 3,796 | \u2014 | 3,796 | |||||||||||
Total long-term investments | \u2014 | 213,524 | \u2014 | 213,524 | |||||||||||
Total | $ | 115,712 | $ | 1,144,190 | $ | \u2014 | $ | 1,259,902 |
July 31, 2018 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash and cash equivalents: | |||||||||||||||
Commercial paper | $ | \u2014 | $ | 269,654 | $ | \u2014 | $ | 269,654 | |||||||
Corporate bonds | \u2014 | 3,001 | \u2014 | 3,001 | |||||||||||
Money market funds | 90,766 | \u2014 | \u2014 | 90,766 | |||||||||||
Total cash equivalents | 90,766 | 272,655 | \u2014 | $ | 363,421 | ||||||||||
Short-term investments: | |||||||||||||||
U.S. Government agency securities | \u2014 | 1,999 | \u2014 | 1,999 | |||||||||||
Commercial paper | \u2014 | 195,376 | \u2014 | 195,376 | |||||||||||
Corporate bonds | \u2014 | 281,696 | \u2014 | 281,696 | |||||||||||
U. S. Government bonds | \u2014 | 89,931 | \u2014 | 89,931 | |||||||||||
Certificates of deposit | \u2014 | 61,006 | \u2014 | 61,006 | |||||||||||
Total short-term investments | \u2014 | 630,008 | \u2014 | 630,008 | |||||||||||
Long-term investments: | |||||||||||||||
U.S. Government agency securities | \u2014 | 6,974 | \u2014 | 6,974 | |||||||||||
Commercial paper | \u2014 | 6,799 | \u2014 | 6,799 | |||||||||||
Corporate bonds | \u2014 | 151,291 | \u2014 | 151,291 | |||||||||||
U.S. Government bonds | \u2014 | 4,864 | \u2014 | 4,864 | |||||||||||
Certificates of deposit | \u2014 | 21,024 | \u2014 | 21,024 | |||||||||||
Total long-term investments | \u2014 | 190,952 | \u2014 | 190,952 | |||||||||||
Total | $ | 90,766 | $ | 1,093,615 | $ | \u2014 | $ | 1,184,381 |
July\u00a031, 2019 | July 31, 2018 | ||||||
Prepaid expenses | $ | 11,926 | $ | 14,704 | |||
Contract costs | 7,015 | \u2014 | |||||
Deferred costs | 7,030 | 9,074 | |||||
Deposits and other receivables | 9,595 | 6,686 | |||||
Prepaid expenses and other current assets | $ | 35,566 | $ | 30,464 |
July 31, 2019 | July 31, 2018 | ||||||
Computer hardware | $ | 17,799 | $ | 20,614 | |||
Software | 6,741 | 4,664 | |||||
Capitalized software development costs | 7,374 | 3,978 | |||||
Equipment and machinery | 10,455 | 4,265 | |||||
Furniture and fixtures | 8,137 | 4,217 | |||||
Leasehold improvements | 48,191 | 10,751 | |||||
\u00a0\u00a0\u00a0\u00a0Total property and equipment | 98,697 | 48,489 | |||||
Less accumulated depreciation | (32,888 | ) | (29,894 | ) | |||
\u00a0\u00a0\u00a0\u00a0Property and equipment, net | $ | 65,809 | $ | 18,595 |
July\u00a031, 2019 | July 31, 2018 | ||||||
Prepaid expenses | $ | 2,640 | $ | 2,476 | |||
Contract costs | 23,375 | \u2014 | |||||
Deferred costs | 8,867 | 9,377 | |||||
Strategic investments | 10,672 | 10,672 | |||||
Other assets | $ | 45,554 | $ | 22,525 |
Goodwill - July 31, 2017 | $ | 141,851 | ||
Cyence Acquisition | 198,929 | |||
Changes in carrying value | 97 | |||
Goodwill - July 31, 2018 | $ | 340,877 | ||
Changes in carrying value | \u2014 | |||
Goodwill - July 31, 2019 | $ | 340,877 |
July 31, 2019 | July 31, 2018 | ||||||||||||||||||||||||
Remaining Weighted-Average Useful Life (in years) | Cost | Accumulated Amortization | Net Book Value | Cost | Accumulated Amortization | Net Book Value | |||||||||||||||||||
Acquired technology | 2.4 | $ | 93,600 | $ | 53,970 | 39,630 | $ | 93,600 | $ | 34,189 | $ | 59,411 | |||||||||||||
Customer contracts and related relationships | 4.6 | 35,700 | 12,566 | 23,134 | 35,700 | 6,633 | 29,067 | ||||||||||||||||||
Partner relationships | 5.7 | 200 | 74 | 126 | 200 | 52 | 148 | ||||||||||||||||||
Trademarks | 5.3 | 2,500 | 625 | 1,875 | 2,500 | 268 | 2,232 | ||||||||||||||||||
Order backlog | 1.3 | 8,700 | 6,923 | 1,777 | 8,700 | 3,904 | 4,796 | ||||||||||||||||||
Total | 3.2 | $ | 140,700 | $ | 74,158 | $ | 66,542 | $ | 140,700 | $ | 45,046 | $ | 95,654 |
Fiscal year ending July 31, | ||||
2020 | $ | 26,835 | ||
2021 | 19,965 | |||
2022 | 11,143 | |||
2023 | 3,799 | |||
2024 | 2,379 | |||
Thereafter | 2,421 | |||
Total future amortization expense | $ | 66,542 |
July 31, 2019 | July 31, 2018 | ||||||
Accounts receivable | $ | 139,884 | $ | 125,911 | |||
Allowance for doubtful accounts and revenue reserves | (1,441 | ) | (1,062 | ) | |||
Accounts receivable, net | $ | 138,443 | $ | 124,849 |
Allowances - July 31, 2017 | $ | \u2014 | ||
Charges to bad debt and revenue reserves | 1,062 | |||
Write-offs, net | \u2014 | |||
Allowances - July 31, 2018 | $ | 1,062 | ||
Charges to bad debt and revenue reserves | 670 | |||
Write-offs, net | (291 | ) | ||
Allowances - July 31, 2019 | 1,441 |
July 31, 2019 | July 31, 2018 | ||||||
Bonus | $ | 37,628 | $ | 31,273 | |||
Commission | 10,317 | 7,287 | |||||
Vacation | 14,511 | 13,132 | |||||
Salaries, payroll taxes and benefits | 10,909 | 8,443 | |||||
\u00a0\u00a0\u00a0\u00a0\u00a0Total | $ | 73,365 | $ | 60,135 |
July\u00a031, 2019 | July 31, 2018 | ||||||
Prepaid expenses | $ | 11,926 | $ | 14,704 | |||
Contract costs | 7,015 | \u2014 | |||||
Deferred costs | 7,030 | 9,074 | |||||
Deposits and other receivables | 9,595 | 6,686 | |||||
Prepaid expenses and other current assets | $ | 35,566 | $ | 30,464 |
July 31, 2019 | July 31, 2018 | ||||||
Computer hardware | $ | 17,799 | $ | 20,614 | |||
Software | 6,741 | 4,664 | |||||
Capitalized software development costs | 7,374 | 3,978 | |||||
Equipment and machinery | 10,455 | 4,265 | |||||
Furniture and fixtures | 8,137 | 4,217 | |||||
Leasehold improvements | 48,191 | 10,751 | |||||
\u00a0\u00a0\u00a0\u00a0Total property and equipment | 98,697 | 48,489 | |||||
Less accumulated depreciation | (32,888 | ) | (29,894 | ) | |||
\u00a0\u00a0\u00a0\u00a0Property and equipment, net | $ | 65,809 | $ | 18,595 |
July\u00a031, 2019 | July 31, 2018 | ||||||
Prepaid expenses | $ | 2,640 | $ | 2,476 | |||
Contract costs | 23,375 | \u2014 | |||||
Deferred costs | 8,867 | 9,377 | |||||
Strategic investments | 10,672 | 10,672 | |||||
Other assets | $ | 45,554 | $ | 22,525 |
Goodwill - July 31, 2017 | $ | 141,851 | ||
Cyence Acquisition | 198,929 | |||
Changes in carrying value | 97 | |||
Goodwill - July 31, 2018 | $ | 340,877 | ||
Changes in carrying value | \u2014 | |||
Goodwill - July 31, 2019 | $ | 340,877 |
July 31, 2019 | July 31, 2018 | ||||||||||||||||||||||||
Remaining Weighted-Average Useful Life (in years) | Cost | Accumulated Amortization | Net Book Value | Cost | Accumulated Amortization | Net Book Value | |||||||||||||||||||
Acquired technology | 2.4 | $ | 93,600 | $ | 53,970 | 39,630 | $ | 93,600 | $ | 34,189 | $ | 59,411 | |||||||||||||
Customer contracts and related relationships | 4.6 | 35,700 | 12,566 | 23,134 | 35,700 | 6,633 | 29,067 | ||||||||||||||||||
Partner relationships | 5.7 | 200 | 74 | 126 | 200 | 52 | 148 | ||||||||||||||||||
Trademarks | 5.3 | 2,500 | 625 | 1,875 | 2,500 | 268 | 2,232 | ||||||||||||||||||
Order backlog | 1.3 | 8,700 | 6,923 | 1,777 | 8,700 | 3,904 | 4,796 | ||||||||||||||||||
Total | 3.2 | $ | 140,700 | $ | 74,158 | $ | 66,542 | $ | 140,700 | $ | 45,046 | $ | 95,654 |
Fiscal year ending July 31, | ||||
2020 | $ | 26,835 | ||
2021 | 19,965 | |||
2022 | 11,143 | |||
2023 | 3,799 | |||
2024 | 2,379 | |||
Thereafter | 2,421 | |||
Total future amortization expense | $ | 66,542 |
July 31, 2019 | July 31, 2018 | ||||||
Accounts receivable | $ | 139,884 | $ | 125,911 | |||
Allowance for doubtful accounts and revenue reserves | (1,441 | ) | (1,062 | ) | |||
Accounts receivable, net | $ | 138,443 | $ | 124,849 |
Allowances - July 31, 2017 | $ | \u2014 | ||
Charges to bad debt and revenue reserves | 1,062 | |||
Write-offs, net | \u2014 | |||
Allowances - July 31, 2018 | $ | 1,062 | ||
Charges to bad debt and revenue reserves | 670 | |||
Write-offs, net | (291 | ) | ||
Allowances - July 31, 2019 | 1,441 |
July 31, 2019 | July 31, 2018 | ||||||
Bonus | $ | 37,628 | $ | 31,273 | |||
Commission | 10,317 | 7,287 | |||||
Vacation | 14,511 | 13,132 | |||||
Salaries, payroll taxes and benefits | 10,909 | 8,443 | |||||
\u00a0\u00a0\u00a0\u00a0\u00a0Total | $ | 73,365 | $ | 60,135 |
\u00a0 | Fiscal years ended July\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 20,732 | $ | (26,743 | ) | $ | 18,072 | ||||
Net income (loss) per share: | |||||||||||
Basic | $ | 0.25 | $ | (0.34 | ) | $ | 0.24 | ||||
Diluted | $ | 0.25 | $ | (0.34 | ) | $ | 0.24 | ||||
Denominator: | |||||||||||
Weighted average shares used in computing net income (loss) per share: | |||||||||||
Basic | 81,447,998 | 77,709,592 | 73,994,577 | ||||||||
Weighted average effect of diluted stock options | 229,035 | \u2014 | 544,520 | ||||||||
Weighted average effect of diluted stock awards | 1,004,181 | \u2014 | 789,246 | ||||||||
Diluted | 82,681,214 | 77,709,592 | 75,328,343 |
\u00a0 | Fiscal years ended July\u00a031, | |||||||
\u00a0 | 2019 | 2018 | 2017 | |||||
Stock options to purchase common stock | \u2014 | 597,476 | 24,128 | |||||
Stock awards | 44,196 | 3,161,157 | 88,582 |
\u00a0 | Fiscal years ended July\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 20,732 | $ | (26,743 | ) | $ | 18,072 | ||||
Net income (loss) per share: | |||||||||||
Basic | $ | 0.25 | $ | (0.34 | ) | $ | 0.24 | ||||
Diluted | $ | 0.25 | $ | (0.34 | ) | $ | 0.24 | ||||
Denominator: | |||||||||||
Weighted average shares used in computing net income (loss) per share: | |||||||||||
Basic | 81,447,998 | 77,709,592 | 73,994,577 | ||||||||
Weighted average effect of diluted stock options | 229,035 | \u2014 | 544,520 | ||||||||
Weighted average effect of diluted stock awards | 1,004,181 | \u2014 | 789,246 | ||||||||
Diluted | 82,681,214 | 77,709,592 | 75,328,343 |
\u00a0 | Fiscal years ended July\u00a031, | |||||||
\u00a0 | 2019 | 2018 | 2017 | |||||
Stock options to purchase common stock | \u2014 | 597,476 | 24,128 | |||||
Stock awards | 44,196 | 3,161,157 | 88,582 |
July 31, 2019 | July 31, 2018 | ||||||
Principal | $ | 400,000 | $ | 400,000 | |||
Less: unamortized debt discount and issuance costs | |||||||
Unamortized debt discount | 74,213 | 85,343 | |||||
Debt issuance cost | 8,465 | 9,529 | |||||
Net carrying amount | $ | 317,322 | $ | 305,128 |
Fiscal years ended July 31, | |||||||
2019 | 2018 | ||||||
Contractual interest expense | $ | 5,000 | $ | 1,903 | |||
Amortization of debt discount | 11,131 | 4,134 | |||||
Amortization of debt issuance costs | 1,063 | 378 | |||||
Total | $ | 17,194 | $ | 6,415 | |||
Effective interest rate of the liability component | 5.53% | 5.53% |
July 31, 2019 | July 31, 2018 | ||||||
Principal | $ | 400,000 | $ | 400,000 | |||
Less: unamortized debt discount and issuance costs | |||||||
Unamortized debt discount | 74,213 | 85,343 | |||||
Debt issuance cost | 8,465 | 9,529 | |||||
Net carrying amount | $ | 317,322 | $ | 305,128 |
Fiscal years ended July 31, | |||||||
2019 | 2018 | ||||||
Contractual interest expense | $ | 5,000 | $ | 1,903 | |||
Amortization of debt discount | 11,131 | 4,134 | |||||
Amortization of debt issuance costs | 1,063 | 378 | |||||
Total | $ | 17,194 | $ | 6,415 | |||
Effective interest rate of the liability component | 5.53% | 5.53% |
Lease Obligations (1) | Royalty Obligations\u00a0(2) | Purchase Commitments (3) | Long-Term Debt\u00a0(4) | Total | |||||||||||||||
Fiscal Year Ending July\u00a031, | |||||||||||||||||||
2020 | $ | 10,707 | $ | 2,018 | $ | 27,149 | $ | 5,000 | $ | 44,874 | |||||||||
2021 | 15,571 | 918 | 6,943 | 5,000 | 28,432 | ||||||||||||||
2022 | 14,450 | 701 | 3,500 | 5,000 | 23,651 | ||||||||||||||
2023 | 13,344 | 560 | 227 | 5,000 | 19,131 | ||||||||||||||
2024 | 13,174 | \u2014 | \u2014 | 5,000 | 18,174 | ||||||||||||||
Thereafter | 74,508 | \u2014 | \u2014 | 405,000 | 479,508 | ||||||||||||||
Total | $ | 141,754 | $ | 4,197 | $ | 37,819 | $ | 430,000 | $ | 613,770 |
(1)\u00a0 | Operating lease agreements primarily represent our obligations to make payments under our non-cancellable lease agreements for our corporate headquarters and worldwide offices through 2028. |
(2)\u00a0 | Royalty obligations primarily represent our obligations under our non-cancellable agreements related to software used in certain revenue-generating agreements. |
(3)\u00a0 | Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent commitments for which a penalty could be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement. |
(4)\u00a0 | Long-term debt consists of principal and interest payments on the Company\u2019s Convertible Senior Notes. The $400 million in principal will be due in March 2025. |
Lease Obligations (1) | Royalty Obligations\u00a0(2) | Purchase Commitments (3) | Long-Term Debt\u00a0(4) | Total | |||||||||||||||
Fiscal Year Ending July\u00a031, | |||||||||||||||||||
2020 | $ | 10,707 | $ | 2,018 | $ | 27,149 | $ | 5,000 | $ | 44,874 | |||||||||
2021 | 15,571 | 918 | 6,943 | 5,000 | 28,432 | ||||||||||||||
2022 | 14,450 | 701 | 3,500 | 5,000 | 23,651 | ||||||||||||||
2023 | 13,344 | 560 | 227 | 5,000 | 19,131 | ||||||||||||||
2024 | 13,174 | \u2014 | \u2014 | 5,000 | 18,174 | ||||||||||||||
Thereafter | 74,508 | \u2014 | \u2014 | 405,000 | 479,508 | ||||||||||||||
Total | $ | 141,754 | $ | 4,197 | $ | 37,819 | $ | 430,000 | $ | 613,770 |
(1)\u00a0 | Operating lease agreements primarily represent our obligations to make payments under our non-cancellable lease agreements for our corporate headquarters and worldwide offices through 2028. |
(2)\u00a0 | Royalty obligations primarily represent our obligations under our non-cancellable agreements related to software used in certain revenue-generating agreements. |
(3)\u00a0 | Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent commitments for which a penalty could be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement. |
Fiscal years ended July 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Stock-based compensation expense: | |||||||||||
Total stock-based compensation | $ | 91,570 | $ | 89,176 | $ | 72,695 | |||||
Net impact of deferred stock-based compensation | (54 | ) | 438 | (901 | ) | ||||||
Total stock-based compensation expense | $ | 91,516 | $ | 89,614 | $ | 71,794 | |||||
Stock-based compensation expense was charged to the following categories: | |||||||||||
Cost of license and subscription revenue | $ | 3,011 | $ | 1,002 | $ | 373 | |||||
Cost of maintenance revenue | 1,820 | 1,886 | 1,694 | ||||||||
Cost of services revenue | 22,781 | 21,856 | 18,622 | ||||||||
Research and development | 23,421 | 25,440 | 18,123 | ||||||||
Sales and marketing | 19,246 | 18,387 | 16,663 | ||||||||
General and administrative | 21,237 | 21,043 | 16,319 | ||||||||
Total stock-based compensation expense | 91,516 | 89,614 | 71,794 | ||||||||
Tax benefit from stock-based compensation | 29,159 | 24,481 | 23,014 | ||||||||
Total stock-based compensation expense, net of tax effect | $ | 62,357 | $ | 65,133 | $ | 48,780 |
As of July 31, 2019 | |||||
Unrecognized Expense (in thousands) | Weighted Average Expected Recognition Period (in years) | ||||
Stock Options | $ | 2,319 | 1.5 | ||
Stock Awards | 158,668 | 2.2 | |||
Total unrecognized stock-based compensation expense | $ | 160,987 |
Stock Awards Outstanding | ||||||||||
Number of Stock Awards | Weighted Average Grant Date Fair Value | \u00a0Aggregate Intrinsic Value(1) (in thousands) | ||||||||
Balance as of July 31, 2016 | 2,727,724 | $ | 50.08 | $ | 167,673 | |||||
Granted | 1,542,235 | $ | 61.22 | |||||||
Released | (1,372,770 | ) | $ | 49.38 | $ | 81,427 | ||||
Canceled | (263,104 | ) | $ | 53.53 | ||||||
Balance as of July 31, 2017 | 2,634,085 | $ | 56.62 | $ | 190,076 | |||||
Granted | 1,814,084 | $ | 79.65 | |||||||
Released | (1,260,758 | ) | $ | 56.92 | $ | 103,957 | ||||
Canceled | (255,256 | ) | $ | 63.66 | ||||||
Balance as of July 31, 2018 | 2,932,155 | $ | 69.43 | $ | 252,752 | |||||
Granted | 1,238,700 | $ | 100.01 | |||||||
Released | (1,398,676 | ) | $ | 69.20 | $ | 133,050 | ||||
Canceled | (387,506 | ) | $ | 75.16 | ||||||
Balance as of July 31, 2019 | 2,384,673 | $ | 85.20 | $ | 243,427 | |||||
Expected to vest as of July 31, 2019 | 2,384,673 | $ | 85.20 | $ | 243,427 |
(1)\u00a0 | Aggregate intrinsic value at each fiscal year end represents the total market value of Stock Awards at the Company\u2019s closing stock price of $102.08, $86.20, and $72.16 on July\u00a031, 2019, 2018, and 2017, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release. |
\u00a0Number of Stock Options Outstanding | \u00a0Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | \u00a0Aggregate Intrinsic Value(1) (in thousands) | |||||||||
Balance as of July 31, 2016 | 1,158,572 | $ | 15.45 | 4.0 | $ | 53,316 | ||||||
Granted | \u2014 | $ | \u2014 | |||||||||
Exercised | (594,936 | ) | $ | 9.35 | $ | 30,636 | ||||||
Canceled | (8,000 | ) | $ | 2.74 | ||||||||
Balance as of July 31, 2017 | 555,636 | $ | 22.17 | 4.0 | $ | 27,777 | ||||||
Granted(2) | 137,057 | $ | 10.23 | |||||||||
Exercised | (150,924 | ) | $ | 13.32 | $ | 10,710 | ||||||
Canceled | (4,705 | ) | $ | 40.05 | ||||||||
Balance as of July 31, 2018 | 537,064 | $ | 21.45 | 4.3 | $ | 34,774 | ||||||
Granted | \u2014 | $ | \u2014 | |||||||||
Exercised | (301,901 | ) | $ | 13.11 | $ | 24,731 | ||||||
Canceled | (18,436 | ) | $ | 9.43 | ||||||||
Balance as of July 31, 2019 | 216,727 | $ | 34.10 | 5.2 | $ | 14,733 | ||||||
Vested and expected to vest as of July 31, 2019 | 216,727 | $ | 34.10 | 5.2 | $ | 14,733 | ||||||
Exercisable as of July 31, 2019 | 181,783 | $ | 38.57 | 4.8 | $ | 11,546 |
(1)\u00a0 | Aggregate intrinsic value at each fiscal year end represents the difference between the Company\u2019s closing stock price of $102.08, $86.20, and $72.16 on July\u00a031, 2019, 2018, and 2017, respectively, and the exercise price of the option. Aggregate intrinsic value for exercised options represents the difference between the Company\u2019s stock price at date of exercise and the exercise price. |
(2)\u00a0 | Represents options assumed through the Cyence acquisition on November 1, 2017. |
Fiscal years ended July 31, | |||||
2019 | 2018 | 2017 | |||
Expected term (in years) | 2.88 | 2.88 | 2.66 - 2.88 | ||
Risk-free interest rate | 2.79% | 1.44% | 0.89% - 1.34% | ||
Expected volatility of the Company | 27.2% | 28.0% | 30.2% - 31.5% | ||
Average expected volatility of the peer companies in the S&P Index | 33.0% | 34.7% | 36.9% - 37.0% | ||
Expected dividend yield | \u2014% | \u2014% | \u2014% |
Fiscal years ended July 31, | |||||
2019 | 2018 | 2017 | |||
Expected life (in years) | * | 1.27 | * | ||
Risk-free interest rate | * | 1.48% | * | ||
Expected volatility | * | 24.12% | * | ||
Expected dividend yield | * | \u2014% | * | ||
Weighted average fair value of options granted | * | $67.90 | * |
July 31, 2019 | July 31, 2018 | ||||
Exercise of stock options to purchase common stock | 216,727 | 537,064 | |||
Vesting of restricted stock awards | 2,384,673 | 2,932,155 | |||
Shares available for grant under stock plans | 24,776,361 | 21,592,494 | |||
Total common stock reserved for issuance | 27,377,761 | 25,061,713 |
Fiscal years ended July 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Stock-based compensation expense: | |||||||||||
Total stock-based compensation | $ | 91,570 | $ | 89,176 | $ | 72,695 | |||||
Net impact of deferred stock-based compensation | (54 | ) | 438 | (901 | ) | ||||||
Total stock-based compensation expense | $ | 91,516 | $ | 89,614 | $ | 71,794 | |||||
Stock-based compensation expense was charged to the following categories: | |||||||||||
Cost of license and subscription revenue | $ | 3,011 | $ | 1,002 | $ | 373 | |||||
Cost of maintenance revenue | 1,820 | 1,886 | 1,694 | ||||||||
Cost of services revenue | 22,781 | 21,856 | 18,622 | ||||||||
Research and development | 23,421 | 25,440 | 18,123 | ||||||||
Sales and marketing | 19,246 | 18,387 | 16,663 | ||||||||
General and administrative | 21,237 | 21,043 | 16,319 | ||||||||
Total stock-based compensation expense | 91,516 | 89,614 | 71,794 | ||||||||
Tax benefit from stock-based compensation | 29,159 | 24,481 | 23,014 | ||||||||
Total stock-based compensation expense, net of tax effect | $ | 62,357 | $ | 65,133 | $ | 48,780 |
As of July 31, 2019 | |||||
Unrecognized Expense (in thousands) | Weighted Average Expected Recognition Period (in years) | ||||
Stock Options | $ | 2,319 | 1.5 | ||
Stock Awards | 158,668 | 2.2 | |||
Total unrecognized stock-based compensation expense | $ | 160,987 |
Stock Awards Outstanding | ||||||||||
Number of Stock Awards | Weighted Average Grant Date Fair Value | \u00a0Aggregate Intrinsic Value(1) (in thousands) | ||||||||
Balance as of July 31, 2016 | 2,727,724 | $ | 50.08 | $ | 167,673 | |||||
Granted | 1,542,235 | $ | 61.22 | |||||||
Released | (1,372,770 | ) | $ | 49.38 | $ | 81,427 | ||||
Canceled | (263,104 | ) | $ | 53.53 | ||||||
Balance as of July 31, 2017 | 2,634,085 | $ | 56.62 | $ | 190,076 | |||||
Granted | 1,814,084 | $ | 79.65 | |||||||
Released | (1,260,758 | ) | $ | 56.92 | $ | 103,957 | ||||
Canceled | (255,256 | ) | $ | 63.66 | ||||||
Balance as of July 31, 2018 | 2,932,155 | $ | 69.43 | $ | 252,752 | |||||
Granted | 1,238,700 | $ | 100.01 | |||||||
Released | (1,398,676 | ) | $ | 69.20 | $ | 133,050 | ||||
Canceled | (387,506 | ) | $ | 75.16 | ||||||
Balance as of July 31, 2019 | 2,384,673 | $ | 85.20 | $ | 243,427 | |||||
Expected to vest as of July 31, 2019 | 2,384,673 | $ | 85.20 | $ | 243,427 |
\u00a0Number of Stock Options Outstanding | \u00a0Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | \u00a0Aggregate Intrinsic Value(1) (in thousands) | |||||||||
Balance as of July 31, 2016 | 1,158,572 | $ | 15.45 | 4.0 | $ | 53,316 | ||||||
Granted | \u2014 | $ | \u2014 | |||||||||
Exercised | (594,936 | ) | $ | 9.35 | $ | 30,636 | ||||||
Canceled | (8,000 | ) | $ | 2.74 | ||||||||
Balance as of July 31, 2017 | 555,636 | $ | 22.17 | 4.0 | $ | 27,777 | ||||||
Granted(2) | 137,057 | $ | 10.23 | |||||||||
Exercised | (150,924 | ) | $ | 13.32 | $ | 10,710 | ||||||
Canceled | (4,705 | ) | $ | 40.05 | ||||||||
Balance as of July 31, 2018 | 537,064 | $ | 21.45 | 4.3 | $ | 34,774 | ||||||
Granted | \u2014 | $ | \u2014 | |||||||||
Exercised | (301,901 | ) | $ | 13.11 | $ | 24,731 | ||||||
Canceled | (18,436 | ) | $ | 9.43 | ||||||||
Balance as of July 31, 2019 | 216,727 | $ | 34.10 | 5.2 | $ | 14,733 | ||||||
Vested and expected to vest as of July 31, 2019 | 216,727 | $ | 34.10 | 5.2 | $ | 14,733 | ||||||
Exercisable as of July 31, 2019 | 181,783 | $ | 38.57 | 4.8 | $ | 11,546 |
(1)\u00a0 | Aggregate intrinsic value at each fiscal year end represents the difference between the Company\u2019s closing stock price of $102.08, $86.20, and $72.16 on July\u00a031, 2019, 2018, and 2017, respectively, and the exercise price of the option. Aggregate intrinsic value for exercised options represents the difference between the Company\u2019s stock price at date of exercise and the exercise price. |
Fiscal years ended July 31, | |||||
2019 | 2018 | 2017 | |||
Expected term (in years) | 2.88 | 2.88 | 2.66 - 2.88 | ||
Risk-free interest rate | 2.79% | 1.44% | 0.89% - 1.34% | ||
Expected volatility of the Company | 27.2% | 28.0% | 30.2% - 31.5% | ||
Average expected volatility of the peer companies in the S&P Index | 33.0% | 34.7% | 36.9% - 37.0% | ||
Expected dividend yield | \u2014% | \u2014% | \u2014% |
Fiscal years ended July 31, | |||||
2019 | 2018 | 2017 | |||
Expected life (in years) | * | 1.27 | * | ||
Risk-free interest rate | * | 1.48% | * | ||
Expected volatility | * | 24.12% | * | ||
Expected dividend yield | * | \u2014% | * | ||
Weighted average fair value of options granted | * | $67.90 | * |
July 31, 2019 | July 31, 2018 | ||||
Exercise of stock options to purchase common stock | 216,727 | 537,064 | |||
Vesting of restricted stock awards | 2,384,673 | 2,932,155 | |||
Shares available for grant under stock plans | 24,776,361 | 21,592,494 | |||
Total common stock reserved for issuance | 27,377,761 | 25,061,713 |
\u00a0 | Fiscal years ended July\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
Domestic | $ | (1,778 | ) | $ | (13,501 | ) | $ | 21,723 | |||
International | 14,230 | 5,225 | 6,803 | ||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 12,452 | $ | (8,276 | ) | $ | 28,526 |
\u00a0 | Fiscal years ended July\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
Current: | |||||||||||
U.S. Federal | $ | 3,297 | $ | 2,047 | $ | 6,339 | |||||
State | 48 | 219 | 1,829 | ||||||||
Foreign | 1,859 | 2,203 | 3,595 | ||||||||
Total current | 5,204 | 4,469 | 11,763 | ||||||||
Deferred: | |||||||||||
U.S. Federal | (13,683 | ) | 15,766 | (686 | ) | ||||||
State | (989 | ) | (1,460 | ) | (429 | ) | |||||
Foreign | 1,188 | (308 | ) | (194 | ) | ||||||
Total deferred | (13,484 | ) | 13,998 | (1,309 | ) | ||||||
Total provision for (benefit from) income taxes | $ | (8,280 | ) | $ | 18,467 | $ | 10,454 |
\u00a0 | Fiscal years ended July\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
Statutory federal income tax | $ | 2,617 | $ | (2,224 | ) | $ | 9,984 | ||||
State taxes, net of federal benefit | (939 | ) | (993 | ) | 806 | ||||||
Share-based compensation | (8,013 | ) | (8,715 | ) | 2,517 | ||||||
Non-deductible officers' compensation | 3,938 | 3,230 | 959 | ||||||||
Foreign income taxed at different rates | 203 | 1,022 | (819 | ) | |||||||
Research tax credits | (6,943 | ) | (5,822 | ) | (2,377 | ) | |||||
Re-measurement of U.S. deferred taxes | \u2014 | 36,125 | \u2014 | ||||||||
Non-deductible acquisition costs | \u2014 | 1,270 | 270 | ||||||||
Domestic production activity deduction | \u2014 | \u2014 | (1,370 | ) | |||||||
Permanent differences and others | 918 | 666 | 484 | ||||||||
Change in valuation allowance | (61 | ) | (6,092 | ) | \u2014 | ||||||
Total provision for (benefit from) income taxes | $ | (8,280 | ) | $ | 18,467 | $ | 10,454 |
\u00a0 | As of July\u00a031, | ||||||
\u00a0 | 2019 | 2018 | |||||
Accruals and reserves | $ | 7,870 | $ | 12,129 | |||
Stock-based compensation | 6,353 | 7,658 | |||||
Deferred revenue | 2,316 | 4,023 | |||||
Property and equipment | \u2014 | 1,268 | |||||
Net operating loss carryforwards | 55,881 | 56,668 | |||||
Tax credits | 74,819 | 60,450 | |||||
Total deferred tax assets | 147,239 | 142,196 | |||||
Less valuation allowance | 31,421 | 28,541 | |||||
Net deferred tax assets | 115,818 | 113,655 | |||||
Less deferred tax liabilities: | |||||||
Intangible assets | 7,413 | 11,461 | |||||
Convertible debt | 10,274 | 11,567 | |||||
Property and equipment | 1,435 | \u2014 | |||||
Unremitted foreign earnings | 302 | 258 | |||||
Capitalized commissions | 6,086 | \u2014 | |||||
Total deferred tax liabilities | 25,510 | 23,286 | |||||
Deferred tax assets, net | 90,308 | 90,369 | |||||
Less foreign deferred revenue | \u2014 | 69 | |||||
Less foreign capitalized commissions | 906 | \u2014 | |||||
Total net deferred tax assets | 89,402 | 90,300 |
U.S. Federal | $ | 40,839 | ||
California | 33,818 | |||
Total R&D credit carryforwards | $ | 74,657 |
\u00a0 | Fiscal years ended July\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
Unrecognized tax benefit - beginning of period | $ | 10,321 | $ | 9,346 | $ | 7,687 | |||||
Gross increases - prior period tax positions | 98 | 729 | 712 | ||||||||
Gross decreases - prior period tax positions | (88 | ) | (878 | ) | (691 | ) | |||||
Gross increases - current period tax positions | 1,302 | 1,124 | 1,638 | ||||||||
Unrecognized tax benefit - end of period | $ | 11,633 | $ | 10,321 | $ | 9,346 |
\u00a0 | Fiscal years ended July\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
Domestic | $ | (1,778 | ) | $ | (13,501 | ) | $ | 21,723 | |||
International | 14,230 | 5,225 | 6,803 | ||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 12,452 | $ | (8,276 | ) | $ | 28,526 |
\u00a0 | Fiscal years ended July\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
Current: | |||||||||||
U.S. Federal | $ | 3,297 | $ | 2,047 | $ | 6,339 | |||||
State | 48 | 219 | 1,829 | ||||||||
Foreign | 1,859 | 2,203 | 3,595 | ||||||||
Total current | 5,204 | 4,469 | 11,763 | ||||||||
Deferred: | |||||||||||
U.S. Federal | (13,683 | ) | 15,766 | (686 | ) | ||||||
State | (989 | ) | (1,460 | ) | (429 | ) | |||||
Foreign | 1,188 | (308 | ) | (194 | ) | ||||||
Total deferred | (13,484 | ) | 13,998 | (1,309 | ) | ||||||
Total provision for (benefit from) income taxes | $ | (8,280 | ) | $ | 18,467 | $ | 10,454 |
\u00a0 | Fiscal years ended July\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
Statutory federal income tax | $ | 2,617 | $ | (2,224 | ) | $ | 9,984 | ||||
State taxes, net of federal benefit | (939 | ) | (993 | ) | 806 | ||||||
Share-based compensation | (8,013 | ) | (8,715 | ) | 2,517 | ||||||
Non-deductible officers' compensation | 3,938 | 3,230 | 959 | ||||||||
Foreign income taxed at different rates | 203 | 1,022 | (819 | ) | |||||||
Research tax credits | (6,943 | ) | (5,822 | ) | (2,377 | ) | |||||
Re-measurement of U.S. deferred taxes | \u2014 | 36,125 | \u2014 | ||||||||
Non-deductible acquisition costs | \u2014 | 1,270 | 270 | ||||||||
Domestic production activity deduction | \u2014 | \u2014 | (1,370 | ) | |||||||
Permanent differences and others | 918 | 666 | 484 | ||||||||
Change in valuation allowance | (61 | ) | (6,092 | ) | \u2014 | ||||||
Total provision for (benefit from) income taxes | $ | (8,280 | ) | $ | 18,467 | $ | 10,454 |
\u00a0 | As of July\u00a031, | ||||||
\u00a0 | 2019 | 2018 | |||||
Accruals and reserves | $ | 7,870 | $ | 12,129 | |||
Stock-based compensation | 6,353 | 7,658 | |||||
Deferred revenue | 2,316 | 4,023 | |||||
Property and equipment | \u2014 | 1,268 | |||||
Net operating loss carryforwards | 55,881 | 56,668 | |||||
Tax credits | 74,819 | 60,450 | |||||
Total deferred tax assets | 147,239 | 142,196 | |||||
Less valuation allowance | 31,421 | 28,541 | |||||
Net deferred tax assets | 115,818 | 113,655 | |||||
Less deferred tax liabilities: | |||||||
Intangible assets | 7,413 | 11,461 | |||||
Convertible debt | 10,274 | 11,567 | |||||
Property and equipment | 1,435 | \u2014 | |||||
Unremitted foreign earnings | 302 | 258 | |||||
Capitalized commissions | 6,086 | \u2014 | |||||
Total deferred tax liabilities | 25,510 | 23,286 | |||||
Deferred tax assets, net | 90,308 | 90,369 | |||||
Less foreign deferred revenue | \u2014 | 69 | |||||
Less foreign capitalized commissions | 906 | \u2014 | |||||
Total net deferred tax assets | 89,402 | 90,300 |
U.S. Federal | $ | 40,839 | ||
California | 33,818 | |||
Total R&D credit carryforwards | $ | 74,657 |
\u00a0 | Fiscal years ended July\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
Unrecognized tax benefit - beginning of period | $ | 10,321 | $ | 9,346 | $ | 7,687 | |||||
Gross increases - prior period tax positions | 98 | 729 | 712 | ||||||||
Gross decreases - prior period tax positions | (88 | ) | (878 | ) | (691 | ) | |||||
Gross increases - current period tax positions | 1,302 | 1,124 | 1,638 | ||||||||
Unrecognized tax benefit - end of period | $ | 11,633 | $ | 10,321 | $ | 9,346 |
Fiscal years ended July 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
United States | $ | 446,586 | $ | 409,729 | $ | 301,083 | |||||
Canada | 46,969 | 45,591 | 50,956 | ||||||||
Other Americas | 18,118 | 19,154 | 19,447 | ||||||||
Total Americas | 511,673 | 474,474 | 371,486 | ||||||||
United Kingdom | 39,996 | 36,653 | 32,554 | ||||||||
Other EMEA | 96,390 | 75,178 | 48,727 | ||||||||
Total EMEA | 136,386 | 111,831 | 81,281 | ||||||||
Total APAC | 71,455 | 66,544 | 56,766 | ||||||||
Total revenue | $ | 719,514 | $ | 652,849 | $ | 509,533 |
July 31, 2019 | July 31, 2018 | ||||||
Americas | $ | 468,545 | $ | 449,588 | |||
EMEA | 4,633 | 5,491 | |||||
APAC | 50 | 47 | |||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total | $ | 473,228 | $ | 455,126 |
Fiscal years ended July 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
United States | $ | 446,586 | $ | 409,729 | $ | 301,083 | |||||
Canada | 46,969 | 45,591 | 50,956 | ||||||||
Other Americas | 18,118 | 19,154 | 19,447 | ||||||||
Total Americas | 511,673 | 474,474 | 371,486 | ||||||||
United Kingdom | 39,996 | 36,653 | 32,554 | ||||||||
Other EMEA | 96,390 | 75,178 | 48,727 | ||||||||
Total EMEA | 136,386 | 111,831 | 81,281 | ||||||||
Total APAC | 71,455 | 66,544 | 56,766 | ||||||||
Total revenue | $ | 719,514 | $ | 652,849 | $ | 509,533 |
July 31, 2019 | July 31, 2018 | ||||||
Americas | $ | 468,545 | $ | 449,588 | |||
EMEA | 4,633 | 5,491 | |||||
APAC | 50 | 47 | |||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total | $ | 473,228 | $ | 455,126 |