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Stock-Based Compensation Expense and Shareholders' Equity | 3 Months Ended
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Oct. 31, 2022
Stockholders' Equity and Stock-based Compensation [Abstract] |
Stock-Based Compensation Expense and Shareholders' Equity | Stock-Based Compensation Expense and Shareholders’ Equity Stock-Based Compensation Expense Stock-based compensation expense related to stock options and Stock Awards is included in the Company’s condensed consolidated statements of operations as follows (in thousands):
| Three Months Ended October 31, |  |
| 2022 |  | 2021 |  |  |  |
Stock-based compensation expense | $ | 35,249 |  |  | $ | 32,533 |  |  |  |  |
Net impact of deferred stock-based compensation | (153) |  |  | (293) |  |  |  |  |
Total stock-based compensation expense, net | $ | 35,096 |  |  | $ | 32,240 |  |  |  |  |
Stock-based compensation expense is included in the following categories: |  |  |  |  |  |  |
Cost of subscription and support revenue | $ | 3,468 |  |  | $ | 3,030 |  |  |  |  |
Cost of license revenue | 147 |  |  | 182 |  |  |  |  |
Cost of services revenue | 5,349 |  |  | 5,189 |  |  |  |  |
Research and development | 9,291 |  |  | 7,997 |  |  |  |  |
Sales and marketing | 6,887 |  |  | 7,113 |  |  |  |  |
General and administrative | 9,954 |  |  | 8,729 |  |  |  |  |
Total stock-based compensation expense | $ | 35,096 |  |  | $ | 32,240 |  |  |  |  |
Total unrecognized stock-based compensation expense related to the Company’s stock options and Stock Awards as of October 31, 2022 is as follows:
| Unrecognized Expense (in thousands) |  | Weighted Average Expected Recognition Period (in years)
Stock Options | $ | 3,569 |  |  | 1.8
Stock Awards | 352,209 |  |  | 3.0
Total unrecognized stock-based compensation expense | $ | 355,778 |  |  |
Stock Awards A summary of Stock Awards activity under the Company’s equity incentive plans is as follows:
| Stock Awards Outstanding
| Number of Stock Awards Outstanding |  | Weighted Average Grant Date Fair Value |  | Aggregate Intrinsic Value (in thousands)(1)
Balance as of July 31, 2022 | 2,785,353 |  |  | $ | 110.47 |  |  | $ | 216,478 |
Granted | 1,991,973 |  |  | $ | 66.03 |  |  |
Released | (373,380) |  |  | $ | 112.50 |  |  | $ | 24,981 |
Canceled | (100,911) |  |  | $ | 106.40 |  |  |
Balance as of October 31, 2022 | 4,303,035 |  |  | $ | 89.81 |  |  | $ | 255,643 |
Expected to vest as of October 31, 2022 | 4,303,035 |  |  | $ | 89.81 |  |  | $ | 255,643 |
(1) Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $59.41 and $77.72 on October 31, 2022 and July 31, 2022, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release. Stock Options A summary of stock option activity under the Company’s equity incentive plans is as follows:
| Stock Options Outstanding
| Number of Stock Options Outstanding |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life |  | Aggregate Intrinsic Value(1)
|  |  |  |  | (in years) |  | (in thousands)
Balance as of July 31, 2022 | 75,706 |  |  | $ | 61.93 |  |  | 8.7 |  | $ | 1,196 |
Granted | 91,350 |  |  | $ | 68.22 |  |  |  |  |
Exercised | — |  |  | $ | — |  |  |  |  | $ | — |
Canceled | — |  |  | $ | — |  |  |  |  |
Balance as of October 31, 2022 | 167,056 |  |  | $ | 65.37 |  |  | 9.1 |  | $ | 647 |
Vested and expected to vest as of October 31, 2022 | 167,056 |  |  | $ | 65.37 |  |  | 9.1 |  | $ | 647 |
Exercisable as of October 31, 2022 | 14,806 |  |  | $ | 21.85 |  |  | 3.3 |  | $ | 556 |
(1) Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock price of $59.41 and $77.72 on October 31, 2022 and July 31, 2022, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. Share Repurchase Program In September 2022, the Company's board of directors authorized and approved a share repurchase program of up to $400.0 million of the Company's outstanding common stock. Share repurchases under the program may be made from time to time, in the open market, in privately negotiated transactions and otherwise, at the discretion of management of the Company and in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act, and other applicable legal requirements. Such repurchases may also be made in compliance with Rule 10b5-1 trading plans entered into by the Company. In September 2022, the Company entered into an accelerated share repurchase (“ASR”) agreement with a large financial institution whereupon the Company provided them with a prepayment of $200.0 million and received an initial delivery of 2,581,478 shares of the Company’s common stock. The ASR is expected to settle between the second and third quarters of fiscal year 2023. Under the terms of the ASR, the total number of shares delivered and average price paid per share will be determined upon settlement based on the volume weighted average price over the term of the ASR, less an agreed upon discount. At settlement, the financial institution may be required to deliver additional shares of the Company’s common stock to the Company or, under certain circumstances, the Company may be required to make a cash payment or deliver shares of the Company’s common stock to the financial institution, with the method of settlement at the Company’s election. As of October 31, 2022, a portion of the ASR prepayment was evaluated as an unsettled forward contract indexed to the Company’s stock, classified within stockholders’ equity. During the three months ended October 31, 2022, the Company repurchased 2,581,478 shares of common stock through the ASR described above. As of October 31, 2022, $200.0 million remains under the September 2022 authorized and approved share repurchase program. During the three months ended October 31, 2021, the Company repurchased 226,172 shares of common stock at an average price of $116.12 per share under a previously completed share repurchase program.

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- Definition Stockholders' equity and stock-based compensation. + References No definition available. + Details
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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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