Balance Sheet Components

12 Months Ended

Jul. 31, 2024

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, 2023 and 2024, 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, 2023 and 2024, 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 July 31, 2024
	(in thousands)
Due within one year	$	209,076
Due in one to three years		129,996
Total	$	339,072

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consists of the following:


	As of July 31,
	2023		2024
	(in thousands)
Prepaid operating expenses	$	84,998	$	62,815
VAT receivables		5,954		8,017
Other current assets		56,135		26,475
Total prepaid expenses and other current assets	$	147,087	$	97,307

The decrease in prepaid expenses and other current assets from July 31, 2023 to July 31, 2024 was due primarily to the release of the insurance receivable and the settlement payment related to the February 2023

settlement of two securities class actions, as the settlement was paid out during the fiscal quarter ended October 31, 2023. For additional details on legal proceedings, refer to Note 7.

Property and Equipment, Net

Property and equipment, net consists of the following:


	Estimated	As of July 31,
	Useful Life	2023			2024
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	381,140		$	421,559
Demonstration units	12		60,985			59,570
Leasehold improvements	(1)		64,667			64,607
Software	(2)		9,238			29,014
Furniture and fixtures	60		16,132			16,169
Total property and equipment, gross			532,162			590,919
Less: accumulated depreciation			(420,297	)		(454,739	)
Total property and equipment, net		$	111,865		$	136,180

(1)

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

(2)

The estimated useful life of software ranges from 36 to 120 months, representing the period during which the software is expected to contribute, either directly or indirectly, to our future cash flows.

Depreciation expense related to our property and equipment was $69.3 million, $63.3 million and $65.6 million for the fiscal years ended July 31, 2022, 2023 and 2024, respectively.

Intangible Assets, Net

Intangible assets, net consists of the following:


	As of July 31,
	2023			2024
	(in thousands)
Developed technology	$	78,267		$	79,838
Customer relationships		8,860			11,230
Trade name		4,170			4,200
Total intangible assets, gross		91,297			95,268
Less:
Accumulated amortization of developed technology		(73,411	)		(76,804	)
Accumulated amortization of customer relationships		(8,823	)		(9,111	)
Accumulated amortization of trade name		(4,170	)		(4,200	)
Total accumulated amortization		(86,404	)		(90,115	)
Total intangible assets, net	$	4,893		$	5,153

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

The changes in the net book value of intangible assets, net are as follows:


	As of July 31,
	2023			2024
	(in thousands)
Intangible assets, net—beginning balance	$	15,829		$	4,893
Amortization of intangible assets (1)		(10,697	)		(3,709	)
Acquisition of intangible assets		—			3,969
Divestiture of Frame intangible assets		(239	)		—
Intangible assets, net—ending balance	$	4,893		$	5,153

(1)

Represents amortization expense related to intangible assets recognized during the year in our consolidated statements of operations, within product cost of revenue and sales and marketing expense.

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


Fiscal Year Ending July 31:	Amount
	(in thousands)
2025	$	2,540
2026		777
2027		777
2028		353
2029		353
Thereafter		353
Total	$	5,153

Goodwill

The changes in the carrying amount of goodwill are as follows:


	Carrying Amount
	(in thousands)
Balance at July 31, 2022	$	185,260
Adjustment for Frame divestiture		(322	)
Balance at July 31, 2023		184,938
Adjustment for acquisition		297
Balance at July 31, 2024	$	185,235

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:


	As of July 31,
	2023		2024
	(in thousands)
Accrued commissions and taxes	$	36,882	$	40,714
Payroll taxes payable		17,427		31,797
Accrued vacation		24,840		26,772
Contributions to ESPP withheld		10,145		24,676
Accrued bonus		16,404		17,863
Accrued benefits		12,391		16,580
Accrued wages and taxes		11,485		16,255
Retirement 401(k) payable		1,915		701
Other		12,190		20,244
Total accrued compensation and benefits	$	143,679	$	195,602

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:


	As of July 31,
	2023		2024
	(in thousands)
Income taxes payable	$	2,185	$	1,927
Accrued professional services		1,978		2,004
Litigation settlement reserves		71,000		—
Software usage liability		11,248		—
Other		22,858		21,036
Total accrued expenses and other current liabilities	$	109,269	$	24,967

The decrease in accrued expenses and other current liabilities from July 31, 2023 to July 31, 2024 was due primarily to the release of the litigation settlement reserve related to the settlement of two securities class actions, which was agreed to in February 2023 but paid out during the fiscal quarter ended October 31, 2023. For additional details on legal proceedings, refer to Note 7. In addition, we released the software usage liability related to the completed Audit Committee investigation, as we settled with the vendor.