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REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS (Tables)

12 Months Ended

Jul. 31, 2018

Revenue from Contract with Customer [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

We adjusted our consolidated financial statements from amounts previously reported due to the adoption of ASC 606. Selected consolidated balance sheet line items, adjusted for the adoption of ASC 606, are as follows:

	As of July 31, 2017
	As Previously Reported				Impact of Adoption				As Adjusted
	(in thousands)
Assets
Deferred commissions—current	$	27,679			$	(3,836	)	(1)	$	23,843
Deferred commissions—non-current	33,709				15,975			(1)	49,684
Total deferred commissions	$	61,388			$	12,139			$	73,527
Liabilities
Deferred revenue—current	$	233,498			$	(63,375	)	(2)	$	170,123
Deferred revenue—non-current	292,573				(93,640		)	(2)	198,933
Total deferred revenue	$	526,071			$	(157,015	)		$	369,056
Accrued expenses and other current liabilities	$	9,414			$	293		(3)	$	9,707
Stockholders' Equity	$	48,202			$	168,861			$	217,063

(1) Impact of cumulative change in commissions expense

(2) Impact of cumulative change in revenue

(3) Impact of cumulative change in provision for income taxes

Selected consolidated statement of operations line items, adjusted for the adoption of ASC 606, are as follows:

	Fiscal Year Ended July 31, 2016
	As Previously Reported				Impact of Adoption				As Adjusted
	(in thousands, except per share data)
Revenue
Product	$	350,798			$	63,112			$	413,910
Support, entitlements and other services	94,130				(4,630		)		89,500
Total revenue	$	444,928			$	58,482			$	503,410
Gross profit	$	274,141			$	58,482			$	332,623
Operating expenses
Sales and marketing expenses	$	288,493			$	(1,909	)		$	286,584
Loss from operations	$	(165,017	)		$	60,391			$	(104,626	)
Net loss	$	(168,499	)		$	60,266			$	(108,233	)
Basic and diluted net loss per share	$	(3.83	)		$	1.37			$	(2.46	)

	Fiscal Year Ended July 31, 2017
	As Previously Reported				Impact of Adoption				As Adjusted
	(in thousands, except per share data)
Revenue
Product	$	583,011			$	90,286			$	673,297
Support, entitlements and other services	183,858				(11,252		)		172,606
Total revenue	$	766,869			$	79,034			$	845,903
Gross profit	$	439,538			$	79,034			$	518,572
Operating expenses
Sales and marketing expenses	$	500,529			$	492			$	501,021
Loss from operations	$	(426,951	)		$	78,542			$	(348,409	)
Net loss	$	(458,011	)		$	78,373			$	(379,638	)
Basic and diluted net loss per share	$	(3.57	)		$	0.61			$	(2.96	)

Revenue by geographic location, based on bill-to location, adjusted for the adoption of ASC 606, is as follows:

	Fiscal Year Ended July 31, 2016
	As Previously Reported				Impact of Adoption				As Adjusted
	(in thousands)
U.S.	$	280,800			$	38,496			$	319,296
Europe, the Middle East and Africa	81,320				(15,721		)		65,599
Asia Pacific	63,610				33,113				96,723
Other Americas	19,198				2,594				21,792
Total revenue	$	444,928			$	58,482			$	503,410

	Fiscal Year Ended July 31, 2017
	As Previously Reported				Impact of Adoption				As Adjusted
	(in thousands)
U.S.	$	462,770			$	25,309			$	488,079
Europe, the Middle East and Africa	139,170				(355		)		138,815
Asia Pacific	131,921				54,943				186,864
Other Americas	33,008				(863		)		32,145
Total revenue	$	766,869			$	79,034			$	845,903

Selected consolidated statement of cash flows line items, adjusted for the adoption of ASC 606, are as follows:

	Fiscal Year Ended July 31, 2016
	As Previously Reported				Impact of Adoption				As Adjusted
	(in thousands)
Cash flows from operating activities:
Net loss	$	(168,499	)		$	60,266			$	(108,233	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred commissions	$	(19,813	)		$	(1,911	)		$	(21,724	)
Accrued expenses and other liabilities	$	(1,336	)		$	127			$	(1,209	)
Deferred revenue	$	192,867			$	(58,482	)		$	134,385

	Fiscal Year Ended July 31, 2017
	As Previously Reported				Impact of Adoption				As Adjusted
	(in thousands)
Cash flows from operating activities:
Net loss	$	(458,011	)		$	78,373			$	(379,638	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred commissions	$	(24,495	)		$	489			$	(24,006	)
Accrued expenses and other liabilities	$	4,944			$	172			$	5,116
Deferred revenue	$	223,598			$	(79,034	)		$	144,564

Revenue by Arrangement, Disclosure

The following table depicts the disaggregation of revenue by revenue type, consistent with how we evaluate our financial performance:

	Fiscal Year Ended July 31,
	2016				2017				2018
	(in thousands)
Software revenue	$	287,603			$	436,981			$	630,675
Hardware revenue	126,307				236,316				257,314
Support, entitlements and other services revenue	89,500				172,606				267,468
Total revenue	$	503,410			$	845,903			$	1,155,457

Deferred Revenue, by Arrangement, Disclosure

Significant changes in the balance of deferred revenue (contract liability) and total deferred commissions (contract asset) for the periods presented are as follows:

	Deferred Revenue				Deferred Commissions
	(in thousands)
Balance as of July 31, 2016	$	218,481			$	49,522
Additions	317,170				101,152
Revenue/commissions recognized	(172,606		)		(77,147		)
Assumed in a business combination	6,011				—
Balance as of July 31, 2017 (1)	369,056				73,527
Additions	529,495				150,122
Revenue/commissions recognized	(267,468		)		(109,270		)
Assumed in a business combination	124				—
Balance as of July 31, 2018	$	631,207			$	114,379

(1) See details above for a summary of adjustments to deferred commissions and deferred revenue as a result of the adoption of ASC 606.

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