Balance Sheet Components

6 Months Ended

Jan. 31, 2022

Balance Sheet Related Disclosures [Abstract]

Accounts Receivables, Net

Accounts receivable, net consists of the following (in thousands):


	January 31, 2022		July 31, 2021
Accounts receivable	$	112,281	$	105,125
Allowance for credit losses and revenue reserves	(576)		(1,057)
Accounts receivable, net	$	111,705	$	104,068

Allowance for Credit Losses and Revenue Reserves

Changes to the allowance for credit losses and revenue reserves consists of the following (in thousands):


Balance as of July 31, 2021	$	1,057
Net changes to credit losses	—
Net changes to revenue reserves	(154)
Write-offs, net	(327)
Balance as of January 31, 2022	$	576

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):


	January 31, 2022		July 31, 2021
Prepaid expenses	$	21,319	$	20,330
Contract costs	14,717		13,365
Deferred costs	9,910		9,247
Other	15,477		9,787

Prepaid expenses and other current assets	$	61,423	$	52,729

Property and Equipment, Net

Property and equipment consist of the following (in thousands):


	January 31, 2022		July 31, 2021
Computer hardware	$	14,009	$	19,256
Purchased software	5,484		6,002
Capitalized software development costs	30,881		24,025
Equipment and machinery	8,654		12,214
Furniture and fixtures	11,453		11,482
Leasehold improvements	59,686		57,960
Total property and equipment	130,167		130,939
Less accumulated depreciation	(48,475)		(50,878)
Property and equipment, net	$	81,692	$	80,061

As of January 31, 2022 and July 31, 2021, no property and equipment was pledged as collateral. Depreciation expense, excluding the amortization of capitalized software development costs, was $3.5 million for both of the three months ended January 31, 2022 and 2021, and $7.2 million for both of the six months ended January 31, 2022 and 2021.

The Company recognized amortization expense related to capitalized software development costs in cost of subscription and support revenue on the condensed consolidated statements of operations of $1.5 million and $0.7 million during the three months ended January 31, 2022 and 2021, respectively, and $2.7 million and $1.4 million during the six months ended January 31, 2022 and 2021, respectively.

Goodwill and Intangible Assets, Net

Changes in the carrying amount of goodwill were as follows (in thousands):


Goodwill, July 31, 2021	$	340,877
Addition — HazardHub acquisition	31,185
Goodwill, January 31, 2022	$	372,062

The Company’s intangible assets are amortized over their estimated useful lives. Intangible assets consist of the following (in thousands):


		January 31, 2022						July 31, 2021
	Remaining Weighted-Average Useful Life (in years)	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
Intangible assets:
Acquired technology	3.3	$	38,100	$	25,016	$	13,084	$	93,600	$	86,367	$	7,233
Customer contracts and related relationships	3.7	40,800		27,860		12,940		35,700		24,432		11,268
Partner relationships	3.2	200		130		70		200		119		81
Trademarks	4.5	3,400		1,576		1,824		2,500		1,339		1,161

Total	3.6	$	82,500	$	54,582	$	27,918	$	140,700	$	120,957	$	19,743

Amortization expense was $3.8 million and $6.3 million for the three months ended January 31, 2022 and 2021, respectively, and $7.5 million and $12.6 million for the six months ended January 31, 2022 and 2021, respectively. The future amortization expense for existing intangible assets as of January 31, 2022, based on their current useful lives, is as follows (in thousands):


Fiscal year ending July 31,
2022 (remainder of fiscal year)	$	6,557
2023	6,888
2024	5,468
2025	5,026
2026	3,572
Thereafter	407
Total	$	27,918

Other assets

Other assets consist of the following (in thousands):


	January 31, 2022		July 31, 2021
Prepaid expenses	$	2,759	$	3,276
Contract costs	29,331		28,870
Deferred costs	1,664		2,777
Strategic equity investments	14,077		3,556
Other	4,976		—
Other assets	$	52,807	$	38,479

The Company’s other assets include strategic equity investments in privately-held companies in which the Company does not have a controlling interest or the ability to exert significant influence. The strategic investments consist of non-marketable equity securities that do not have readily determinable market values (Level 3). The Company records these strategic investments at cost less impairment and adjusts cost for subsequent observable changes in fair value. In the second quarter of fiscal year 2022, the Company invested $10.5 million in new strategic investments. No impairment charges related to strategic investments were recognized during the three and six months ended January 31, 2022 and 2021, respectively.

Accrued Employee Compensation

Accrued employee compensation consists of the following (in thousands):


	January 31, 2022		July 31, 2021
Bonus	$	24,898	$	48,414
Commission	4,047		11,271
Vacation*	5,027		23,803
Salaries, payroll taxes, and benefits	19,544		18,649
Accrued employee compensation	$	53,516	$	102,137

*In the first quarter of fiscal year 2022, the Company paid out accrued vacation for employees in certain countries upon adopting a non-accrued vacation policy effective September 1, 2021.

Other Current Liabilities

Other current liabilities consist of the following (in thousands):


	January 31, 2022		July 31, 2021
Lease liabilities	$	11,239	$	11,624
Accrued royalties	9,239		7,525
Accrued taxes	3,727		6,796
Other	5,535		5,703
Other current liabilities	$	29,740	$	31,648