Convertible Senior Notes (Tables)

12 Months Ended

Jul. 31, 2022

Debt Instrument [Line Items]

Net Proceeds from Notes

The total net proceeds from the issuance of the 2023 Notes were as follows:

	Amount
	(in thousands)
Principal amount	$	575,000
Less: initial purchasers' discount		(10,781	)
Less: cost of the bond hedges		(143,175	)
Add: proceeds from the sale of warrants		87,975
Less: other issuance costs		(707	)
Net proceeds	$	508,312

2023 Convertible Senior Notes

Debt Instrument [Line Items]

Components of Notes

The 2023 Notes consisted of the following:

	As of July 31,
	2021			2022
	(in thousands)
Principal amounts:
Principal	$	575,000		$	145,704
Unamortized debt discount (1)		(48,616	)		—
Unamortized debt issuance costs (1)		(2,713	)		(248	)
Net carrying amount	$	523,671		$	145,456
Carrying amount of equity component (2)	$	148,598		$	—

(1)Included in our consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2023 Notes using the effective interest rate method. As of July 31, 2021, the effective interest rate was 6.62%. As of July 31, 2022, the effective interest rate was 0.41%.

(2)Included in our consolidated balance sheets as of July 31, 2021 within additional paid-in capital, net of $3.0 million in equity issuance costs.

Interest Expense Recognized

The following table sets forth the total interest expense recognized related to the 2023 Notes:

	Fiscal Year Ended July 31,
	2020		2021		2022
	(in thousands)
Interest expense related to amortization of debt discount	$	29,658	$	31,682	$	—
Interest expense related to amortization of debt issuance    costs		1,654		1,767		844
Total interest expense	$	31,312	$	33,449	$	844

2026 Convertible Senior Notes

Debt Instrument [Line Items]

Components of Notes

The 2026 Notes consisted of the following:

	As of July 31,
	2021			2022
	(in thousands)
Principal amounts:
Principal	$	750,000		$	750,000
Non-cash interest expense converted to principal		8,906			27,997
Unamortized debt discount (conversion feature) (1)		(203,619	)		(169,438	)
Unamortized debt issuance costs (1)		(23,264	)		(19,359	)
Net carrying amount	$	532,023		$	589,200

(1)Included in our consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2026 Notes using the effective interest rate method. The effective interest rate is 7.05%.

Interest Expense Recognized

The following table sets forth the total interest expense recognized related to the 2026 Notes:

	Fiscal Year Ended July 31,
	2021		2022
	(in thousands)
Interest expense related to amortization of debt discount	$	27,291	$	34,180
Interest expense related to amortization of debt issuance costs		3,119		3,906
Non-cash interest expense		16,074		19,270
Total interest expense	$	46,484	$	57,356

2027 Convertible Senior Notes

Debt Instrument [Line Items]

Components of Notes

The 2027 Notes consisted of the following:

	As of July 31, 2022
	(in thousands)
Principal amounts:
Principal	$	575,000
Unamortized debt issuance costs (1)		(7,995	)
Net carrying amount	$	567,005

(1)Included in our consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2027 Notes using the effective interest rate method. The effective interest rate is 0.52%.

Interest Expense Recognized

The following table sets forth the total interest expense recognized related to the 2027 Notes:

	Fiscal Year Ended July 31,
	2022
	(in thousands)
Contractual interest expense	$	1,229
Interest expense related to amortization of debt issuance costs		1,302
Total interest expense	$	2,531