Balance Sheet Components

9 Months Ended

Apr. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 4. BALANCE SHEET COMPONENTS

Short-Term Investments

The amortized cost of our short-term investments approximates their fair value. Unrealized losses related to our short-term investments are generally due to interest rate fluctuations, as opposed to credit quality. However, we review individual securities that are in an unrealized loss position in order to evaluate whether or not they have experienced or are expected to experience credit losses that would result in a decline in fair value. As of July 31, 2021 and April 30, 2022, unrealized gains and losses from our short-term investments were not material and were not the result of a decline in credit quality. As a result, as of July 31, 2021 and April 30, 2022, we did not record any credit losses for these investments.

The following table summarizes the estimated fair value of our investments in marketable debt securities by their contractual maturity dates:


	As of April 30, 2022
	(in thousands)
Due within one year	$	752,880
Due in one to two years		161,021
Total	$	913,901

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consists of the following:


	As of
	July 31, 2021		April 30, 2022
	(in thousands)
Prepaid operating expenses	$	36,455	$	50,827
VAT receivables		8,290		7,055
Other current assets		12,071		28,446
Total prepaid expenses and other current assets	$	56,816	$	86,328

Property and Equipment, Net

Property and equipment, net consists of the following:


		As of
	Estimated Useful Life	July 31, 2021			April 30, 2022
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	300,583		$	336,552
Demonstration units	12		68,992			62,456
Leasehold improvements	(1)		62,676			61,036
Furniture and fixtures	60		16,518			16,473
Total property and equipment, gross			448,769			476,517
Less: accumulated depreciation (2)			(317,148	)		(359,023	)
Total property and equipment, net		$	131,621		$	117,494

(1)

Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term.

(2)

Includes a $0.9 million write-off related to the impairment of certain leasehold improvements during the fiscal quarter ended October 31, 2020. For additional information on this lease-related impairment, refer to Note 6.

Depreciation expense related to our property and equipment was $19.2 million and $57.5 million for the three and nine months ended April 30, 2021, respectively, and $16.8 million and $53.2 million for the three and nine months ended April 30, 2022, respectively.

Goodwill and Intangible Assets, Net

There was no change in the carrying value of goodwill during the nine months ended April 30, 2022.

Intangible assets, net consists of the following:


	As of
	July 31, 2021			April 30, 2022
	(in thousands)
Developed technology	$	79,300		$	79,300
Customer relationships		8,860			8,860
Trade name		4,170			4,170
Total intangible assets, gross		92,330			92,330
Less:
Accumulated amortization of developed technology		(50,764	)		(60,975	)
Accumulated amortization of customer relationships		(6,513	)		(7,684	)
Accumulated amortization of trade name		(3,041	)		(3,823	)
Total accumulated amortization		(60,318	)		(72,482	)
Total intangible assets, net	$	32,012		$	19,848

Amortization expense related to our intangible assets is being recognized in the condensed consolidated statements of operations within product cost of revenue for developed technology and sales and marketing expense for customer relationships and trade name.

The estimated future amortization expense of our intangible assets is as follows:


Fiscal Year Ending July 31:	Amount
	(in thousands)
2022 (remaining three months)	$	4,019
2023		10,856
2024		3,210
2025		1,763
Total	$	19,848

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:


	As of
	July 31, 2021		April 30, 2022
	(in thousands)
Accrued vacation	$	26,961	$	24,672
Accrued commissions		48,321		22,441
Payroll taxes payable		21,603		20,455
Accrued wages and taxes		1,675		18,585
Accrued benefits		10,243		11,826
Contributions to ESPP withheld		26,735		9,547
Accrued bonus		14,878		5,693
Other		11,921		9,887
Total accrued compensation and benefits	$	162,337	$	123,106

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:


	As of
	July 31, 2021		April 30, 2022
	(in thousands)
Income taxes payable	$	13,309	$	9,685
Accrued professional services		3,541		6,217
Other		22,554		32,137
Total accrued expenses and other current liabilities	$	39,404	$	48,039