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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Oct. 31, 2018	Nov. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Zscaler, Inc.
Entity Central Index Key	0001713683
Current Fiscal Year End Date	--07-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 31, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Shares Outstanding		122,250,116

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Current assets:
Cash and cash equivalents	$ 42,786	$ 135,579
Short-term investments	271,254	162,960
Accounts receivable, net	49,228	61,611
Deferred contract acquisition costs	16,387	16,136
Prepaid expenses and other current assets	11,949	10,878
Total current assets	391,604	387,164
Property and equipment, net	24,132	19,765
Deferred contract acquisition costs, noncurrent	39,591	39,774
Other noncurrent assets	2,767	1,078
Total assets	458,094	447,781
Current liabilities:
Accounts payable	4,573	4,895
Accrued expenses and other current liabilities	14,925	12,313
Accrued compensation	18,686	23,393
Liability for early exercised stock options	1,249	1,561
Deferred revenue	144,472	140,670
Total current liabilities	183,905	182,832
Deferred revenue, noncurrent	20,807	23,353
Other noncurrent liabilities	1,204	1,360
Total liabilities	205,916	207,545
Commitments and contingencies (Note 6)
Stockholders’ Equity
Preferred stock; $0.001 par value; 200,000 shares authorized as of October 31, 2018 and July 31, 2018; no shares issued and outstanding as of October 31, 2018 and July 31, 2018	0	0
Common stock; $0.001 par value; 1,000,000 shares authorized as of October 31, 2018 and July 31, 2018; 122,106 and 119,764 shares issued and outstanding as of October 31, 2018 and July 31, 2018, respectively	122	119
Additional paid-in capital	455,761	438,392
Notes receivable from stockholders	0	(2,051)
Accumulated other comprehensive loss	(317)	(124)
Accumulated deficit	(203,388)	(196,100)
Total stockholders’ equity	252,178	240,236
Total liabilities and stockholders’ equity	$ 458,094	$ 447,781

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Income Statement [Abstract]
Revenue	$ 63,298	$ 39,861
Cost of revenue	12,099	8,271
Gross profit	51,199	31,590
Operating expenses:
Sales and marketing	36,545	26,928
Research and development	13,186	8,809
General and administrative	10,131	7,130
Total operating expenses	59,862	42,867
Loss from operations	(8,663)	(11,277)
Interest income, net	1,590	195
Other expense, net	(188)	(27)
Loss before income taxes	(7,261)	(11,109)
Provision for income taxes	327	289
Net loss	(7,588)	(11,398)
Accretion of Series C and D redeemable convertible preferred stock	0	(2,530)
Net loss attributable to common stockholders	$ (7,588)	$ (13,928)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.06)	$ (0.45)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)	120,587	30,793

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 31, 2018	Jul. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	200,000,000	200,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	122,106,000	119,764,000
Common stock, shares outstanding (in shares)	122,106,000	119,764,000

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,588)	$ (11,398)
Other comprehensive loss, net of tax:
Unrealized net losses on available-for-sale securities	(193)	0
Other comprehensive loss	(193)	0
Comprehensive loss	$ (7,781)	$ (11,398)

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Notes Receivable From Stockholders	Accumulated Other Comprehensive Loss	Accumulated Deficit
Redeemable convertible preferred stock, beginning balance (in shares) at Jul. 31, 2017	72,501,000
Redeemable convertible preferred stock, beginning balance at Jul. 31, 2017	$ 200,977
Increase (Decrease) in Temporary Equity [Roll Forward]
Accretion of Series C and D redeemable convertible preferred stock	$ 2,530
Redeemable convertible preferred stock, ending balance (in shares) at Oct. 31, 2017	72,501,000
Redeemable convertible preferred stock, ending balance at Oct. 31, 2017	$ 203,507
Common stock, beginning balance (in shares) at Jul. 31, 2017		32,359,000
Beginning balance at Jul. 31, 2017	(151,142)	$ 18	$ 18,734	$ (7,878)	$ 0	$ (162,016)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accretion of Series C and D redeemable convertible preferred stock	(2,530)		(2,530)
Issuance of common stock upon exercise of stock options (in shares)		423,000
Issuance of common stock upon exercise of stock options	1,211	$ 1	1,210
Repurchases of unvested common stock (in shares)		(549,000)
Repurchases of unvested common stock	214			214
Accrued interest on notes receivable from stockholders, net of repayments	(46)			(46)
Vesting of early exercised stock options	548		548
Stock-based compensation	1,733		1,733
Net loss	(11,398)					(11,398)
Common stock, ending balance (in shares) at Oct. 31, 2017		32,233,000
Ending balance at Oct. 31, 2017	(161,410)	$ 19	20,133	(7,710)	0	(173,852)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change	$ 0		438			(438)
Redeemable convertible preferred stock, beginning balance (in shares) at Jul. 31, 2018	0
Redeemable convertible preferred stock, beginning balance at Jul. 31, 2018	$ 0
Redeemable convertible preferred stock, ending balance (in shares) at Oct. 31, 2018	0
Redeemable convertible preferred stock, ending balance at Oct. 31, 2018	$ 0
Common stock, beginning balance (in shares) at Jul. 31, 2018	119,764,000	119,764,000
Beginning balance at Jul. 31, 2018	$ 240,236	$ 119	438,392	(2,051)	(124)	(196,100)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	2,350,000	2,350,000
Issuance of common stock upon exercise of stock options	$ 9,796	$ 3	9,793
Repurchases of unvested common stock (in shares)		(8,000)
Repurchases of unvested common stock	0
Repayments of principal amount on notes receivable from stockholders	1,905			1,905
Accrued interest on notes receivable from stockholders, net of repayments	146			146
Vesting of early exercised stock options	290		290
Stock-based compensation	7,586		7,586
Other comprehensive loss	(193)				(193)
Net loss	$ (7,588)					(7,588)
Common stock, ending balance (in shares) at Oct. 31, 2018	122,106,000	122,106,000
Ending balance at Oct. 31, 2018	$ 252,178	$ 122	455,761	$ 0	$ (317)	(203,388)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change	$ 0		$ (300)			$ 300

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Cash Flows From Operating Activities
Net loss	$ (7,588)	$ (11,398)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	2,170	1,921
Amortization expense of acquired intangible assets	95	0
Amortization of deferred contract acquisition costs	4,324	2,868
Stock-based compensation expense	7,586	1,733
Other	(317)	(47)
Changes in operating assets and liabilities:
Accounts receivable	12,383	8,621
Deferred contract acquisition costs	(4,392)	(4,208)
Prepaid expenses and other assets	(1,138)	(686)
Accounts payable	(768)	(2,065)
Accrued expenses and other liabilities	2,110	755
Accrued compensation	(4,707)	(3,493)
Deferred revenue	1,256	1,647
Net cash provided by (used in) operating activities	11,014	(4,352)
Cash Flows From Investing Activities
Purchases of property and equipment	(5,414)	(4,010)
Capitalized internal-use software	(356)	(534)
Acquired intangible assets	(1,480)	0
Purchases of short-term investments	(137,429)	0
Proceeds from maturities of short-term investments	29,333	0
Net cash used in investing activities	(115,346)	(4,544)
Cash Flows From Financing Activities
Payments of costs related to initial public offering	(230)	(1,443)
Proceeds from issuance of common stock upon exercise of stock options	9,796	1,211
Repurchases of unvested common stock	(22)	(3,090)
Repayments of notes receivable from stockholders	1,905	0
Net cash provided by (used in) financing activities	11,449	(3,322)
Net decrease in cash, cash equivalents and restricted cash	(92,883)	(12,218)
Cash, cash equivalents and restricted cash at beginning of period	136,147	88,546
Cash, cash equivalents and restricted cash at end of period	43,264	76,328
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes	517	141
Supplemental Disclosure of Noncash Investing and Financing Activities:
Net change in purchased equipment included in accounts payable and accrued expenses	786	(41)
Accretion of Series C and D redeemable convertible preferred stock	0	2,530
Repurchases of unvested common stock by cancellation of indebtedness	0	214
Vesting of early exercised common stock options	290	548
Net change in deferred offering costs, accrued but not paid	(230)	971
Reconciliation of cash, cash equivalents and restricted cash within the consolidated balance sheets to the amounts shown in the statements of cash flows above:
Total cash, cash equivalents and restricted cash	$ 136,147	$ 88,546

Business and Summary of Significant Accounting Policies

3 Months Ended

Oct. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Summary of Significant Accounting Policies

Description of the Business

Zscaler, Inc. ("Zscaler," the "Company," "we," "us," or "our") is a cloud security company that developed a platform incorporating core security functionalities needed to enable users to safely utilize authorized applications and services based on an organization’s policies. Our solution is a purpose-built, multi-tenant, distributed cloud security platform that secures access for users and devices to applications and services, regardless of location. We deliver our solutions using a software-as-a-service ("SaaS") business model and sell subscriptions to customers to access our cloud platform, together with related support services. We were incorporated in Delaware in September 2007 and conduct business worldwide, with presence in North America, Europe and Asia. Our headquarters are in San Jose, California.

Reverse Stock Split

In March 2018, our board of directors approved an amendment to the Company's amended and restated certificate of incorporation effecting a 2-for-3 reverse stock split of the Company's issued and outstanding shares of common stock and convertible preferred stock. The reverse stock split was effected on March 1, 2018. All issued and outstanding share and per share amounts included in the accompanying condensed consolidated financial statements have been adjusted to reflect this reverse stock split for all periods presented.

Initial Public Offering

In March 2018, we completed our initial public offering ("IPO") of common stock, in which we sold 13,800,000 shares. The shares were sold at an IPO price of $16.00 per share for net proceeds of $205.3 million, after deducting underwriters' discounts and commissions of $15.5 million. In connection with the IPO, we incurred offering costs of $6.5 million which were recorded in stockholders’ equity as a reduction of the net proceeds received from the IPO. Immediately prior to the closing of the IPO, all our outstanding shares of convertible preferred stock were automatically converted into 72,500,750 shares of common stock on a one-to-one basis.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and applicable regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting, and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements and accompanying footnotes should be read in conjunction with the Company's audited consolidated financial statements and related notes in its Annual Report on Form 10-K for the fiscal year ended July 31, 2018 (the "Fiscal 2018 Form 10-K"), as filed with the SEC on September 13, 2018.

Interim Unaudited Condensed Consolidated Financial Statements

The accompanying condensed balance sheet as of July 31, 2018 was derived from the audited financial statements as of that date. The accompanying interim condensed consolidated financial statements, including the consolidated balance sheets as of October 31, 2018 , the consolidated statements of operations for the three months ended October 31, 2018 and 2017, the consolidated statements of comprehensive loss for the three months ended October 31, 2018 and 2017, the consolidated statements of cash flows for the three months ended October 31, 2018 and 2017, the consolidated statement of redeemable convertible preferred stock and stockholders’ (equity) deficit for the three months ended October 31, 2018 and 2017 are unaudited. The related financial data and the other financial information disclosed in the accompanying notes to these condensed consolidated financial statements are also unaudited. These interim unaudited condensed consolidated financial statements have been prepared on a basis consistent with our annual consolidated financial statements and, in our opinion, include all normal recurring adjustments necessary to state fairly our quarterly results. The results of operations for the three months ended October 31, 2018 are not necessarily indicative of the results to be expected for the fiscal year ending July 31, 2019 or for any other future fiscal year or interim period.

JOBS Act Extended Transition Period

We are an emerging growth company ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As an EGC, the JOBS Act allows us to take advantage of specified reduced reporting requirements that are otherwise generally applicable to public companies, including, but not limited to, delayed adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We have irrevocably elected not to avail ourselves of the extended transition periods available under the JOBS Act for complying with new and revised accounting standards and, therefore, we are subject to the same new or revised accounting standards as other public companies that are not emerging growth companies.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of revenue recognition, deferred revenue, deferred contract acquisition costs, valuation of acquired intangible assets, the period of benefit generated from our deferred contract acquisition costs, allowance for doubtful accounts, valuation of common stock options and stock-based awards, useful lives of property and equipment, useful lives of acquired intangible assets, loss contingencies related to litigation and valuation of deferred tax assets. Management determines these estimates and assumptions on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ significantly from these estimates, and such differences may be material to the condensed consolidated financial statements.

Fiscal Year

Our fiscal year ends on July 31. References to fiscal 2019, for example, refer to our fiscal year ending July 31, 2019.

Significant Accounting Policies

Our significant accounting policies are discussed in the "Index to Consolidated Financial Statements, Note 1. Business and Summary of Significant Accounting Policies" in the Form 10-K for the fiscal year ended July 31, 2018, filed with the SEC on September 13, 2018 (the "Fiscal 2018 10-K"). There have been no significant changes to these policies that have had a material impact on our condensed consolidated financial statements and related notes for the three months ended October 31, 2018. The following describes the impact of certain policies.

Revenue Recognition

We adopted Accounting Standards Codification ("ASC") Topic 606, Revenue From Contracts With Customers ("ASC 606") on August 1, 2017, using the full retrospective transition method.

Disaggregation of Revenue

Subscription and support revenue is recognized over time and accounted for approximately 99% and 98% of our revenue for the three months ended October 31, 2018 and 2017, respectively.

The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform:



	Three Months Ended October 31,
	2018				2017
	Amount		% Revenue		Amount		% Revenue
	(in thousands, except percentage data)
United States	$	29,807	47	%	$	18,986	47	%
Europe, Middle East and Africa (*)	27,394		43	%	17,664		44	%
Asia Pacific	4,789		8	%	3,124		8	%
Other	1,308		2	%	87		1	%
Total	$	63,298	100	%	$	39,861	100	%

_____

^(*) Revenue from the United Kingdom represented 10% and 11% of the total revenue for three months ended October 31, 2018 and 2017, respectively.

The following table summarizes the revenue from contracts by type of customer:



	Three Months Ended October 31,
	2018				2017
	Amount		% Revenue		Amount		% Revenue
	(in thousands, except percentage data)
Channel partners	$	60,019	95	%	$	36,171	91	%
Direct customers	3,279		5	%	3,690		9	%
Total	$	63,298	100	%	$	39,861	100	%

Contract Balances

Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the three months ended October 31, 2018 and 2017, we recognized revenue of $53.8 million and $34.1 million, respectively, that was included in the corresponding contract liability balance at the beginning of these periods.

Remaining Performance Obligations

The typical subscription and support term is one to three years. Most of our subscription and support contracts are non-cancelable over the contractual term. However, customers typically have the right to terminate their contracts for cause, if we fail to perform. As of October 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $411.2 million. We expect to recognize 54% of the transaction price over the next 12 months and 97% of the transaction price over the next three years, with the remainder recognized thereafter.

Costs to Obtain and Fulfill a Contract

We capitalize sales commissions and associated payroll taxes paid to internal sales personnel that are incremental to the acquisition of channel partner and direct customer contracts. These costs are recorded as deferred contract acquisition costs in the condensed consolidated balance sheets.

The following table summarizes the activity of the deferred contract acquisition costs:



	Three Months Ended October 31,
	2018			2017
	(in thousands)
Beginning balance	$	55,910		$	34,662
Capitalization of contract acquisition costs	4,392			4,208
Amortization of deferred contract acquisition costs	(4,324		)	(2,868		)
Ending balance	$	55,978		$	36,002

Deferred contract acquisition costs, current	$	16,387		$	10,815
Deferred contract acquisition costs, noncurrent	39,591			25,187
Total deferred contract acquisition costs	$	55,978		$	36,002

Sales commissions accrued but not paid as of October 31, 2018 and July 31, 2018, totaled $3.6 million and $10.0 million, respectively, which are included within accrued compensation in the condensed consolidated balance sheets.

Deferred Offering Costs

Deferred offering costs consisted of fees and expenses incurred in connection with our IPO, including legal, accounting, printing and other IPO-related costs. Upon completion of our IPO, deferred offering costs totaling $6.5 million were reclassified to stockholders' equity (deficit) as a reduction of the net proceeds received from the IPO.

Recently Adopted Accounting Pronouncements

In January 2017, the Financial Accounting Standard Board ("FASB") issued Accounting Standard Update ("ASU") No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendment was issued to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or businesses. This standard provides a screen test to determine when a set (inputs and processes that produce an output) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. We adopted this standard as of August 1, 2018, and it did not have a material impact to our consolidated financial statements.

In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which provides clarity in applying the guidance in Topic 718 around modifications of share-based payment awards. We adopted this standard as of August 1, 2018, and it did not have a material impact to our consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new standard eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero-coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. We adopted this standard as of August 1, 2018 using the retrospective transition method, and it did not have a material impact to our consolidated financial statements.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted this standard as of August 1, 2018 using the retrospective transition method and we have adjusted our prior period condensed consolidated statement of cash flows to conform to the current presentation.

In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for equity awards granted to nonemployees. For public business entities, it is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We early adopted this standard as of August 1, 2018 using the prospective transition method, which resulted in a cumulative-effect adjustment of $0.3 million recognized within stockholders' equity, as a reduction of additional paid-in capital against accumulated deficit, on the adoption date.

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard requires capitalized costs to be amortized on a straight-line basis generally over the term of the arrangement, and the financial statement presentation for these capitalized costs would be the same as that of the fees related to the hosting arrangements. For public business entities, this standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We early adopted this standard as of August 1, 2018 using the prospective transition method, and it did not have a material impact to our consolidated financial statements.

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, "Disclosure Update and Simplification," amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The final rule is effective November 5, 2018. We early adopted this requirement as of August 1, 2018, presenting the activity of the stockholder's equity accounts in the accompanying condensed statements of redeemable convertible preferred stock and stockholders' equity (deficit) for the periods presented.

Recently Issued Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which requires lessees to recognize most leases on their balance sheets that do not meet the definition of a short-term lease but recognize the expenses on their statements of operations in a manner similar to current accounting rules. In July 2018, the FASB issued ASU 2018-10, Leases (Topic 842), Codification Improvements ("ASU 2018-10"), which clarifies certain adoption provisions of the new leases standard such as the application of implicit rate, lessee reassessment of lease classification and certain transition adjustments. In addition, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements ("ASU 2018-11"), which allows for the adoption of ASU 2016-02 to be applied at the beginning of the year of adoption, as opposed to at the beginning of the earliest year presented in the financial statements. These standards are effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the effect of these standards; however, we anticipate the most significant effects will relate to the recognition of right-of-use assets and lease liabilities arising from our real estate and data center operating leases that do not meet the definition of a short-term lease on the adoption date and providing qualitative and quantitative disclosures in the notes to the condensed consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. For public business entities, it is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of this standard on our consolidated financial statements.

Cash Equivalents and Short-Term Investments

3 Months Ended

Oct. 31, 2018

Cash and Cash Equivalents [Abstract]

Cash Equivalents and Short-Term Investments

Cash equivalents and short-term investments consisted of the following as of October 31, 2018:



	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Cash equivalents:
Money market funds	$	23,418	$	—	$	—		$	23,418
U.S. treasury securities	3,997		—		—			3,997
Total cash equivalents	$	27,415	$	—	$	—		$	27,415

Short-term investments:
U.S. treasury securities	$	135,512	$	—	$	(97	)	$	135,415
U.S. government agency securities	39,285		—		(65		)	39,220
Corporate debt securities	96,774		—		(155		)	96,619
Total short-term investments	$	271,571	$	—	$	(317	)	$	271,254

Total cash equivalents and short-term investments	$	298,986	$	—	$	(317	)	$	298,669

Cash equivalents and short-term investments consisted of the following as of July 31, 2018:



	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Cash equivalents:
Money market funds	$	74,408	$	—	$	—		$	74,408
U.S. treasury securities	17,488		—		—			17,488
U.S. government agency securities	1,999		—		—			1,999
Corporate debt securities	11,010		—		(1		)	11,009
Total cash equivalents	$	104,905	$	—	$	(1	)	$	104,904

Short-term investments:
U.S. treasury securities	$	55,768	$	—	$	(17	)	$	55,751
U.S. government agency securities	17,953		—		(19		)	17,934
Corporate debt securities	89,362		1		(88		)	89,275
Total short-term investments	$	163,083	$	1	$	(124	)	$	162,960

Total cash equivalents and short-term investments	$	267,988	$	1	$	(125	)	$	267,864

The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of October 31, 2018:



	Amortized Cost		Fair Value
	(in thousands)
Due within one year	$	215,368	$	215,169
Due between one and two years	56,203		56,085
Total short-term investments	$	271,571	$	271,254

Short-term investments that were in an unrealized loss position consisted of the following as of October 31, 2018:



	Less than 12 Months					Greater than 12 Months				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. treasury securities	$	135,415	$	(97	)	$	—	$	—	$	135,415	$	(97	)
U.S. government agency securities	39,220		(65		)	—		—		39,220		(65		)
Corporate debt securities	94,557		(155		)	—		—		94,557		(155		)
Total investments in a loss position	$	269,192	$	(317	)	$	—	$	—	$	269,192	$	(317	)

Short-term investments that were in an unrealized loss position consisted of the following as of July 31, 2018:



	Less than 12 Months					Greater than 12 Months				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. treasury securities	$	55,750	$	(17	)	$	—	$	—	$	55,750	$	(17	)
U.S. government agency securities	17,934		(19		)	—		—		17,934		(19		)
Corporate debt securities	83,332		(88		)	—		—		83,332		(88		)
Total investments in a loss position	$	157,016	$	(124	)	$	—	$	—	$	157,016	$	(124	)

We review the individual securities that have unrealized losses in our short-term investment portfolio on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We evaluate, among others, whether we have the intention to sell any of these investments and whether it is more likely than not that we will be required to sell any of them before recovery of the amortized cost basis. Based on this evaluation, we determined that there were no other-than-temporary impairments associated with our short-term investments as of October 31, 2018.

Fair Value Measurements

3 Months Ended

Oct. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Our money market funds are classified within Level I due to the highly liquid nature of these assets which also have quoted prices in active markets.

Certain of our investments in available-for-sale securities (i.e., U.S. treasury securities, U.S. government agency securities and corporate debt securities) are classified within Level II. The fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments.

Assets that are measured at fair value on a recurring basis consisted of the following as of October 31, 2018:



			Level I		Level II		Level III
	Total		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(in thousands)
Cash equivalents:
Money market funds	$	23,418	$	23,418	$	—	$	—
U.S. treasury securities	3,997		—		3,997		—
Total cash equivalents	$	27,415	$	23,418	$	3,997	$	—

Short-term investments:
U.S. treasury securities	$	135,415	$	—	$	135,415	$	—
U.S. government agency securities	39,220		—		39,220		—
Corporate debt securities	96,619		—		96,619		—
Total short-term investments	$	271,254	$	—	$	271,254	$	—

Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2018:



			Level I		Level II		Level III
	Total		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(in thousands)
Cash equivalents:
Money market funds	$	74,408	$	74,408	$	—	$	—
U.S. treasury securities	17,488		—		17,488		—
U.S. government agency securities	1,999		—		1,999		—
Corporate debt securities	11,009		—		11,009		—
Total cash equivalents	$	104,904	$	74,408	$	30,496	$	—

Short-term investments:
U.S. treasury securities	$	55,751	$	—	$	55,751	$	—
U.S. government agency securities	17,934		—		17,934		—
Corporate debt securities	89,275		—		89,275		—
Total short-term investments	$	162,960	$	—	$	162,960	$	—

We did not have transfers between levels of the fair value hierarchy of assets measured at fair value during the periods presented.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Property and Equipment

3 Months Ended

Oct. 31, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consisted of the following:



	October 31, 2018			July 31, 2018
	(in thousands)
Hosting equipment	$	36,830		$	30,743
Computers and equipment	2,398			2,335
Purchased software	1,321			1,324
Capitalized internal-use software	6,519			6,163
Furniture and fixtures	1,477			1,478
Leasehold improvements	2,123			2,123
Property and equipment, gross	50,668			44,166
Less: Accumulated depreciation and amortization	(26,536		)	(24,401		)
Total property and equipment, net	$	24,132		$	19,765

Depreciation and amortization expense on property and equipment was $2.2 million and $1.9 million for the three months ended October 31, 2018 and 2017, respectively.

Acquired Intangible Assets, Net

3 Months Ended

Oct. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Acquired Intangible Assets, Net

Acquired intangible assets consist of developed technology. As of October 31, 2018, acquired intangible assets have a weighted-average remaining useful life of 2.8 years and are amortized on a straight-line basis. Amortization expense of intangible assets was $0.1 million for the three months ended October 31, 2018. We did not have acquired intangible assets as of July 31, 2018.

The gross carrying amount and accumulated amortization of acquired intangible assets consisted of the following as of October 31, 2018:



	Gross Carrying Amount		Accumulated Amortization			Net Book Value
	(in thousands)
Developed technology	$	1,716	$	(95	)	$	1,621

Future amortization expense of acquired intangible assets consisted of the following as of October 31, 2018:



	Amortization
Year ending July 31,	(in thousands)
2019 (remaining nine months)	$	430
2020	572
2021	572
2022	47
Total	$	1,621

Commitments and Contingencies

3 Months Ended

Oct. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Operating Leases

We lease our office space under various operating lease agreements expiring at various dates through August 2021.

Future minimum payments under our non-cancelable operating leases consisted of the following as of October 31, 2018:



	Operating Leases
	(in thousands)
Year ending July 31,
2019 (remaining nine months)	$	2,296
2020	2,466
2021	1,581
2022	18
Total	$	6,361

Rent expense was $0.7 million and $0.5 million for the three months ended October 31, 2018 and 2017, respectively.

Data Center Contract Commitments

We enter into long-term non-cancelable agreements with providers in various countries to purchase data center capacity, such as bandwidth and colocation space, for our cloud platform. Bandwidth and colocation costs were $2.9 million and $2.1 million for the three months ended October 31, 2018 and 2017, respectively.

Future minimum payments under our non-cancelable data center contracts consisted of the following as of October 31, 2018:



	Data Center Contracts
	(in thousands)
Year ending July 31,
2019 (remaining nine months)	$	5,435
2020	4,860
2021	2,672
2022	483
Total	$	13,450

Non-cancelable Purchase Obligations

In the normal course of business, we enter into non-cancelable purchase commitments with various parties to purchase products and services such as technology equipment, office renovations, corporate events and consulting services. As of October 31, 2018 and July 31, 2018, we had outstanding non-cancelable purchase obligations with a term of 12 months or longer of $3.9 million and $3.1 million, respectively.

Legal Matters

Symantec Litigation

We are currently involved in legal proceedings with Symantec. On December 12, 2016, Symantec filed a complaint, which we refer to as Symantec Case 1, in the U.S. District Court for the District of Delaware alleging that "Zscaler’s cloud security platform" infringes U.S. Patent Nos. 6,279,113, 7,203,959 ("’959 patent"), 7,246,227 ("’227 patent"), 7,392,543, 7,735,116, 8,181,036 and 8,661,498. The complaint seeks compensatory damages, an injunction, enhanced damages and attorney fees. On August 2, 2017, the court granted our motion to transfer Symantec Case 1 from the District of Delaware to the Northern District of California. On March 23, 2018, the Northern District of California court granted our motion to dismiss the asserted claims of the ’959 and ’227 patents as invalid based on unpatentable subject matter.

On April 18, 2017, Symantec filed a second complaint, which we refer to as Symantec Case 2, in the U.S. District Court for the District of Delaware alleging that "Zscaler’s cloud security platform" infringes U.S. Patent Nos. 6,285,658, 7,360,249, 7,587,488, 8,316,429 ("’429 patent"), 8,316,446 ("’446 patent"), 8,402,540 and 9,525,696. The complaint seeks compensatory damages, an injunction, enhanced damages and attorney fees.

On June 22, 2017, Symantec filed a notice of voluntary dismissal of its complaint in Symantec Case 2 along with a new complaint alleging infringement of the same patents and adding Symantec Limited as a plaintiff and alleging willful infringement of the ’429 and ’446 patents. On July 31, 2017, the court granted our motion to transfer Symantec Case 2 from the District of Delaware to the Northern District of California. On May 21, 2018, Symantec filed an amended complaint adding allegations of willful infringement of all of the asserted patents in Symantec Case 2.

We have also received letters from Symantec alleging that our "cloud security platform" infringes U.S. Patent Nos. 7,031,327, 7,496,661, 7,543,036 and 7,624,110.

We believe that our technology does not infringe Symantec’s asserted patents and that these patents are invalid.

Should Symantec prevail with its infringement allegations, we could be required to pay substantial damages for past and future sales and/or licensing of our services, enjoined from making, using, selling or otherwise disposing of our services if a license or other right to continue selling our services is not made available to us, and required to pay substantial ongoing royalties and comply with unfavorable terms if such a license is made available to us. Any of these outcomes could result in a material adverse effect on our business. Even if we were to prevail, this litigation could be costly and time-consuming, divert the attention of our management and key personnel from our business operations, deter distributors from selling or licensing our services, and dissuade potential customers from purchasing our services, which would also materially harm our business. The expense of litigation and the timing of this expense from period to period are difficult to estimate, subject to change and could adversely affect our results of operations. In addition, any public announcements of the results of any proceedings in Symantec Case 1 or Case 2 could be negatively perceived by industry or financial analysts and investors, and could cause our stock price to experience volatility or decline.

We have not recorded a liability with respect to Symantec Case 1 or Case 2 based on our determination that a loss in either case is not probable under the applicable accounting standards.

We are vigorously defending Symantec Case 1 and Case 2. We are unable to predict the likelihood of success of Symantec’s infringement claims.

Finjan Litigation

We are currently involved in legal proceedings with Finjan. On December 5, 2017, Finjan filed a complaint, in the U.S. District Court for the Northern District of California alleging that Zscaler’s "Internet Access Bundles," "Private Access Bundle," "Zscaler Enforcement Node," "Secure Web Gateway," "Cloud Firewall," "Cloud Sandbox" and "Cloud Architecture products and services" infringe U.S. Patent Nos. 6,804,780, 7,647,633, 8,677,494 and 7,975,305. The complaint seeks compensatory damages, an injunction, enhanced damages and attorney fees.

We believe our technology does not infringe Finjan’s asserted patents and that Finjan’s patents are invalid.

Should Finjan prevail with its infringement allegations, we could be required to pay substantial damages for past and future sales and/or licensing of our services, enjoined from making, using, selling or otherwise disposing of our services if a license or other right to continue selling our services is not made available to us, and required to pay substantial ongoing royalties and comply with unfavorable terms if such a license is made available to us. Any of these outcomes could result in a material adverse effect on our business. Even if we were to prevail, this litigation could be costly and time-consuming, divert the attention of our management and key personnel from our business operations, deter distributors from selling or licensing our services, and dissuade potential customers from purchasing our services, which would also materially harm our business. The expense of litigation and the timing of this expense from period to period are difficult to estimate, subject to change and could adversely affect our results of operations. In addition, any public announcements of the results of any proceedings in this matter could be negatively perceived by industry or financial analysts and investors, and could cause our stock price to experience volatility or decline.

While the range of potential loss resulting from the lawsuit cannot be reasonably estimated, we have accrued a total liability of $3.2 million as of October 31, 2018 related to past negotiations with Finjan of which we recognized $0.7 million in fiscal 2018 and $2.5 million in fiscal 2017.

We are vigorously defending this lawsuit. Given the early stage in the litigation, we are unable to predict the likelihood of success of Finjan’s infringement claims.

Other Litigation and Claims

In addition, from time to time we are a party to various litigation matters and subject to claims that arise in the ordinary course of business, including patent, commercial, product liability, employment, class action, whistleblower and other litigation and claims, as well as governmental and other regulatory investigations and proceedings. In addition, third parties may from time to time assert claims against us in the form of letters and other communications. Except as otherwise described above, there is no pending or threatened legal proceeding to which we are a party that, in our opinion, is likely to have a material adverse effect on our future financial results or operations; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. The expense of litigation and the timing of this expense from period to period are difficult to estimate, subject to change and could adversely affect our results of operations.

Preferred Stock	3 Months Ended
Preferred Stock	Oct. 31, 2018
Temporary Equity Disclosure [Abstract]
Preferred Stock	Preferred Stock Upon completion of our IPO, as further described in Note 1, all shares of convertible preferred stock then outstanding, totaling 72,500,750 shares, were automatically converted into an equivalent number of shares of common stock on a one-to-one basis and their carrying value, totaling $207.3 million, inclusive of accretion of Series C and D redeemable convertible preferred stock of $24.7 million, was reclassified to stockholders' equity (deficit). Prior to the IPO, we recognized accretion to the redemption price of Series C and D redeemable convertible preferred stock. Accretion was recognized as a reduction of additional paid-in capital with a corresponding increase to the carrying value of Series C and D redeemable convertible preferred stock. Upon completion of the IPO, the accretion rights of Series C and D redeemable convertible preferred stock were terminated. For the three months ended October 31, 2017, we recognized accretion of $2.5 million.

Common Stock

3 Months Ended

Oct. 31, 2018

Equity [Abstract]

Common Stock

Holders of our common stock are entitled to one vote for each share of common stock held and are not entitled to receive dividends unless declared by our board of directors.

As of October 31, 2018, shares of common stock reserved for future issuance consisted of the following:



	October 31, 2018
	(in thousands)
Equity awards outstanding:
Stock options	13,417
Unvested restricted stock units	2,636
Unvested performance stock units, based on the target number of shares granted (*)	1,175
Purchase rights committed under the employee stock purchase plan	1,973
Equity awards available for future grants:
Equity incentive plans	17,010
Employee stock purchase plan	1,425
Total reserved shares of common stock for future issuance	37,636

_____

^(*)Holders of performance stock units corresponding to fiscal 2019, as further described in Note 9, have the ability to receive up to 150% of the target number of shares granted if maximum achievement of target performance metrics is attained.

Stock Based Compensation

3 Months Ended

Oct. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Equity Incentive Plans

We adopted the Fiscal Year 2018 Equity Incentive Plan (the "2018 Plan") in fiscal 2018 and the 2007 Stock Plan (the "2007 Plan") in fiscal 2008, collectively referred to as the "Plans." Equity incentive awards granted under the Plans may be either incentive RSUs, restricted stock, stock options, nonstatutory stock options, stock appreciation rights, performance units and performance shares to our employees, directors, officers and consultants. In March 2018, in connection with our IPO, the 2007 Plan was terminated along with its remaining balance of shares of common stock available for grant. With the establishment of the 2018 Plan, we no longer grant stock-based awards under the 2007 Plan and any shares underlying stock options that expire or terminate or are forfeited or repurchased by us under the 2007 Plan will be automatically transferred to the 2018 Plan. As of October 31, 2018, a total of 18,688,216 shares of common stock have been reserved for issuance under the 2018 Plan.

Stock Options

Under the Plans, the exercise price of a stock option grant must not be less than 100% of the fair market value of the common stock on the date of grant. Generally, stock options vest over four years with 25% of the option shares vesting one year from the date of grant and monthly thereafter over the remaining vesting term. Stock options granted under the 2018 Plan and 2007 Plan are exercisable over a maximum term of ten years and seven years, respectively, from the date of grant. Stock options that are forfeited or canceled shall become available for future grant or sale under the 2018 Plan.

The activity of stock options consisted of the following:



	Outstanding Stock Options		Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
	(in thousands, except per share data)
Balance as of July 31, 2018	16,175		$6.20	5.1	$	470,860
Stock options exercised	(2,350	)	$4.17		$	87,739
Repurchases of unvested shares	—		$2.63
Stock options canceled, forfeited, expired	(408	)	$6.26
Balance as of October 31, 2018	13,417		$6.56	5.1	$	398,958
Exercisable and expected to vest as of July 31, 2018	5,499		$3.97	4.0	$	172,317
Exercisable and expected to vest as of October 31, 2018	4,027		$4.20	4.0	$	129,225

The aggregate intrinsic value of the stock options exercised represents the difference between the fair value of our common stock on the date of exercise and their exercise price. The total intrinsic value of options exercised was $87.7 million and $2.0 million for three months ended October 31, 2018 and 2017, respectively. The weighted-average grant-date fair value per share of awards granted was $2.03 for the three months ended October 31, 2017. Since our IPO, we have not granted additional stock options.

We estimated the fair value of employee stock option using the Black-Scholes option pricing model with the following assumptions.



	Three Months Ended October 31, 2017
Expected term (in years)	4.6
Expected stock price volatility	41.5%
Risk-free interest rate	1.7%
Dividend yield	0.0%

Restricted Stock Units

The 2018 Plan allows for the grant of restricted stock units ("RSUs"). Generally, RSUs are subject to a four-year vesting period, with 25% of the shares vesting one year from the date of grant and quarterly thereafter over the remaining vesting term. We began granting RSUs in our fourth quarter of fiscal 2018.

The RSU activity for the three months ended October 31, 2018 consisted of the following:



	Number of Shares		Weighted-Average Grant Date Fair Value per Share	Aggregate Intrinsic Value
	(in thousands, except per share data)
Balance as of July 31, 2018	209		$26.26	$	7,394
Granted	2,449		$41.15
Vested	—		—
Canceled, forfeited	(22	)	$41.34
Balance as of October 31, 2018	2,636		$39.97	$	95,674

Performance Stock Units

The 2018 Plan allows for the grant of performance stock units ("PSUs"). In the quarter ended October 31, 2018, the compensation committee of our board of directors approved the grant of PSUs to certain members of our executive team corresponding to the performance periods of fiscal 2019, 2020, 2021 and 2022. In addition, the compensation committee determined and approved the corporate performance metrics for fiscal 2019. The corporate performance metrics corresponding to future fiscal years will be determined and approved in the future for each corresponding fiscal year. Holders of PSUs corresponding to the performance period of fiscal 2019 have the ability to receive up to 150% the target number of shares granted if maximum achievement of target performance metrics is achieved. The right to receive such awards is subject to achievement of the defined corporate performance metrics corresponding for each fiscal year and continuous service by the employee. Any earned awards are subject to additional time-based vesting in accordance with the respective award agreement. Since the performance conditions of future fiscal years have not been established as of October 31, 2018, these awards are not considered granted for accounting purposes. Therefore, we have not recognized stock-based compensation expense for PSUs corresponding to fiscal years beyond 2019.

As of October 31, 2018, the number of unvested PSUs outstanding based on the target number of shares granted consisted of the following:



	Shares
Performance periods:	(in thousands)
Fiscal 2019	438
Fiscal 2020	437
Fiscal 2021	150
Fiscal 2022	150
Total	1,175

The following table presents the activity of PSUs for which performance conditions have been established and are expected to be earned:



	Three Months Ended October 31, 2018
	Number of Shares	Weighted-Average Grant Date Fair Value per Share	Aggregate Intrinsic Value
	(in thousands, except per share data)
Balance as of July 31, 2018	—	—	$	—
Granted	438	$37.04
Vested	—	—	$	—
Canceled, forfeited	—	—
Balance as of October 31, 2018	438	$37.04	$	15,877

Employee Stock Purchase Plan

We adopted the Fiscal Year 2018 Employee Stock Purchase Plan (the "ESPP") in the third quarter of fiscal 2018. As of October 31, 2018, a total of 3,397,643 shares of common stock were reserved for issuance under the ESPP. The ESPP provides eligible employees with an opportunity to purchase shares of our common stock through payroll deductions of up to 15% of their eligible compensation. A participant may purchase a maximum of 3,000 shares of common stock during a purchase period. The purchase price of the shares shall be 85% of the lower of the fair market value of our common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of each purchase period in the related offering period. The ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length and is comprised of four purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 15 and December 15 of each year.

Our first and second ESPP offering periods commenced on March 16, 2018 and June 15, 2018. The first ESPP purchase date is scheduled in December 2018.

ESPP employee payroll contributions accrued at October 31, 2018 and July 31, 2018, totaled $7.8 million and $4.6 million, respectively, and are included within accrued compensation in the condensed consolidated balance sheets. Employee payroll contributions ultimately used to purchase shares under the ESPP will be reclassified to stockholders' equity at the end of the purchase period.

Early Exercise of Employee Options

The 2007 Plan allowed for the early exercise of stock options for certain individuals as determined by the board of directors. The consideration received for an early exercise of an option is considered to be a deposit of the exercise price and is reflected as liability in the condensed consolidated balance sheets and reclassified to additional paid-in capital as the awards vest. Upon an employee’s termination, we have the option to repurchase unvested shares at a price per share equal to the lesser of the fair market value of the shares at the time of the repurchase or the original purchase price. During the three months ended October 31, 2018 and 2017, we reclassified to additional paid-in capital $0.3 million and 0.5 million, respectively, related to awards vested during these periods. As of October 31, 2018 and July 31, 2018, the number of shares of common stock subject to repurchase was 323,653 shares and 422,528 shares with an aggregate purchase price of $1.2 million and $1.6 million, respectively.

Notes Receivable from Stockholders

Prior to fiscal 2017, we entered into notes receivable agreements with certain of our current and former executives and employees in connection with the exercise of their stock options. The outstanding principal amount and related accrued interest on the notes are presented as contra-equity in the condensed consolidated balance sheets until the notes are fully settled. As of July 31, 2018, the carrying amount of the outstanding notes receivable, inclusive of accrued interest of $0.1 million, was $2.1 million. During the three months ended October 31, 2018, the principal amount and accrued interest of the remaining outstanding notes were fully repaid, resulting in cash proceeds of $2.1 million.

Stock-based Compensation Expense

The components of stock-based compensation expense recognized in the condensed consolidated statements of operations consisted of the following:



	Three Months Ended October 31,
	2018		2017
	(in thousands)
Cost of revenue	$	503	$	109
Sales and marketing	2,801		785
Research and development	2,795		398
General and administrative	1,487		441
Total stock-based compensation expense	$	7,586	$	1,733

As of October 31, 2018, the unrecognized stock-based compensation cost was $148.6 million, which we expect to amortize over a weighted-average period of 3.7 years.

Income Taxes	3 Months Ended
Income Taxes	Oct. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, we update our estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, we make a cumulative adjustment in such period. Our quarterly tax provision, and estimate of our annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how we do business, and tax law developments. Our estimated effective tax rate for the year differs from the U.S. statutory rate of 21% primarily due to the earnings of our foreign subsidiaries being taxed at rates higher than the U.S. statutory rate. We recorded a provision for income taxes of $0.3 million for the three months ended ended October 31, 2018. We are subject to income tax in the U.S. as well as other tax jurisdictions in which we conduct business. Earnings from our non-U.S. operations are subject to income taxes in the countries in which we operate. Our provision for income taxes consists primarily of both income and withholding taxes in the foreign jurisdictions in which we conduct business. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. We assesses our ability to realize the deferred tax assets on a quarterly basis and we establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. We weigh all available positive and negative evidence, including our earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. Due to the weight of objectively verifiable negative evidence, including our history of losses in certain jurisdictions, we believe that it is more likely than not that our U.S. federal and state deferred tax assets will not be realized. Accordingly, we have maintained a valuation allowance on our U.S. federal and state deferred tax assets. During the three months ended October 31, 2018, we determined that due to the weight of objectively verifiable negative evidence our UK deferred tax assets are no longer more likely than not to be realized in future and a full valuation allowance was recorded during this period. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 or the Tax Act was enacted. The Tax Act contains several key tax provisions that affect us, including, but not limited to, reducing the U.S. federal corporate tax rate from 34% to 21% imposing a one-time mandatory transition tax on previously untaxed foreign earnings, and changing rules related to the use of net operating loss carryforwards created in tax years beginning after December 31, 2017. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allows us to record provisional amounts during a measurement period not to extend beyond one year past the enactment date. We currently maintain a full valuation allowance recorded against our U.S. federal deferred tax assets. As such, the provision estimate associated with the remeasurement of our deferred tax assets was offset by the change in our valuation allowance which resulted in no income tax expense or benefit. Because of our full valuation allowance and current year losses, there is no tax expense associated with the one-time mandatory transition tax. We are still in the process of analyzing the impacts of the policy decision regarding whether to record deferred taxes associated with GILTI. We will complete our assessment of the impacts of the Tax Act, including the remeasurement of our deferred taxes, the one-time mandatory transition tax, and the policy decision regarding whether to record deferred taxes associated with GILTI during the second quarter of this fiscal year in accordance with SAB 118. Our final assessment of the Tax Act may differ from our provisional estimates during the measurement period due to, among other things, further refinement in our calculations, changes in interpretations and assumptions we have made, or guidance that may be issued. However, due to our full valuation allowance, any changes to our provisional estimates will have no impact to our tax expense.

Net Loss Per Share Attributable to Common Stockholders

3 Months Ended

Oct. 31, 2018

Earnings Per Share [Abstract]

Net Loss Per Share Attributable to Common Stockholders

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:



	Three Months Ended October 31,
	2018			2017
	(in thousands)
Net loss	$	(7,588	)	$	(11,398	)
Accretion of Series C and D redeemable convertible preferred stock	—			(2,530		)
Net loss attributable to common stockholders	$	(7,588	)	$	(13,928	)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	120,587			30,793
Net loss per share attributable to common stockholders, basic and diluted	$	(0.06	)	$	(0.45	)

Since we have reported net losses for all periods presented, we have excluded all potentially dilutive securities from the calculation of the diluted net loss per share attributable to common stockholders as their effect is antidilutive and accordingly, basic and diluted net loss per share attributable to common stockholders is the same for all periods presented.

The following table summarizes the unweighted outstanding potentially dilutive securities that were excluded from the computation of the diluted net loss per share attributable to common stockholders because the impact of including them would have been antidilutive:



	October 31, 2018	October 31, 2017
	(in thousands)
Convertible preferred stock	—	72,501
Outstanding stock options	13,418	14,654
Shares subject to repurchase from early exercised stock options	324	1,146
Purchase rights committed under the ESPP	1,973	—
Unvested RSUs	2,636	—
Unvested PSUs (*)	438	—
Total	18,789	88,301

_____

^(*) This table excludes unvested PSUs for which performance conditions have not been established as of October 31, 2018, as they are not considered outstanding for accounting purposes. Refer to Note 9 for further information.

Significant Customers and Geographic Information

3 Months Ended

Oct. 31, 2018

Risks and Uncertainties [Abstract]

Significant Customers and Geographic Information

No single customer accounted for 10% or more of our revenue for the three months ended October 31, 2018 and 2017. Refer to Note 1 to our condensed consolidated financial statements for revenue by geography.

The following table summarizes 10% or more of the total balance of accounts receivable, net:



	October 31, 2018	July 31, 2018
Channel partner A	12%	13%
Channel partner B	11%	*
Channel partner C	10%	*
Channel partner D	*	13%

_____

^(*) Represents less than 10%.

Our long-lived assets are composed of property and equipment, net and acquired intangible assets, net and are summarized by geographic area as follows:



	October 31, 2018		July 31, 2018
	(in thousands)
United States	$	19,000	$	14,742
Rest of the world	6,753		5,023
Total long-lived assets	$	25,753	$	19,765

Related Party Transactions	3 Months Ended
Related Party Transactions	Oct. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions We previously entered into notes receivable agreements with certain of our current and former executives and employees in connection with the exercise of their stock options. Outstanding notes receivable were fully repaid during the quarter ended October 31, 2018. Refer to Note 9 to our condensed consolidated financial statements for further information.

Business and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Oct. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Use of Estimates

Revenue Recognition

We adopted Accounting Standards Codification ("ASC") Topic 606, Revenue From Contracts With Customers ("ASC 606") on August 1, 2017, using the full retrospective transition method.

Disaggregation of Revenue

Subscription and support revenue is recognized over time and accounted for approximately 99% and 98% of our revenue for the three months ended October 31, 2018 and 2017, respectively.

The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform:



	Three Months Ended October 31,
	2018				2017
	Amount		% Revenue		Amount		% Revenue
	(in thousands, except percentage data)
United States	$	29,807	47	%	$	18,986	47	%
Europe, Middle East and Africa (*)	27,394		43	%	17,664		44	%
Asia Pacific	4,789		8	%	3,124		8	%
Other	1,308		2	%	87		1	%
Total	$	63,298	100	%	$	39,861	100	%

_____

^(*) Revenue from the United Kingdom represented 10% and 11% of the total revenue for three months ended October 31, 2018 and 2017, respectively.

The following table summarizes the revenue from contracts by type of customer:



	Three Months Ended October 31,
	2018				2017
	Amount		% Revenue		Amount		% Revenue
	(in thousands, except percentage data)
Channel partners	$	60,019	95	%	$	36,171	91	%
Direct customers	3,279		5	%	3,690		9	%
Total	$	63,298	100	%	$	39,861	100	%

Contract Balances

Remaining Performance Obligations

Costs to Obtain and Fulfill a Contract

The following table summarizes the activity of the deferred contract acquisition costs:



	Three Months Ended October 31,
	2018			2017
	(in thousands)
Beginning balance	$	55,910		$	34,662
Capitalization of contract acquisition costs	4,392			4,208
Amortization of deferred contract acquisition costs	(4,324		)	(2,868		)
Ending balance	$	55,978		$	36,002

Deferred contract acquisition costs, current	$	16,387		$	10,815
Deferred contract acquisition costs, noncurrent	39,591			25,187
Total deferred contract acquisition costs	$	55,978		$	36,002

Deferred Offering Costs

Deferred offering costs consisted of fees and expenses incurred in connection with our IPO, including legal, accounting, printing and other IPO-related costs.

Recently Adopted Accounting Pronouncements; Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

Business and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Oct. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Disaggregation of Revenue

The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform:



	Three Months Ended October 31,
	2018				2017
	Amount		% Revenue		Amount		% Revenue
	(in thousands, except percentage data)
United States	$	29,807	47	%	$	18,986	47	%
Europe, Middle East and Africa (*)	27,394		43	%	17,664		44	%
Asia Pacific	4,789		8	%	3,124		8	%
Other	1,308		2	%	87		1	%
Total	$	63,298	100	%	$	39,861	100	%

_____

^(*) Revenue from the United Kingdom represented 10% and 11% of the total revenue for three months ended October 31, 2018 and 2017, respectively.

The following table summarizes the revenue from contracts by type of customer:



	Three Months Ended October 31,
	2018				2017
	Amount		% Revenue		Amount		% Revenue
	(in thousands, except percentage data)
Channel partners	$	60,019	95	%	$	36,171	91	%
Direct customers	3,279		5	%	3,690		9	%
Total	$	63,298	100	%	$	39,861	100	%

Capitalized Contract Cost

The following table summarizes the activity of the deferred contract acquisition costs:



	Three Months Ended October 31,
	2018			2017
	(in thousands)
Beginning balance	$	55,910		$	34,662
Capitalization of contract acquisition costs	4,392			4,208
Amortization of deferred contract acquisition costs	(4,324		)	(2,868		)
Ending balance	$	55,978		$	36,002

Deferred contract acquisition costs, current	$	16,387		$	10,815
Deferred contract acquisition costs, noncurrent	39,591			25,187
Total deferred contract acquisition costs	$	55,978		$	36,002

Cash Equivalents and Short-Term Investments (Tables)

3 Months Ended

Oct. 31, 2018

Cash and Cash Equivalents [Abstract]

Schedule of Cash Equivalents and Short-Term Investments

Cash equivalents and short-term investments consisted of the following as of October 31, 2018:



	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Cash equivalents:
Money market funds	$	23,418	$	—	$	—		$	23,418
U.S. treasury securities	3,997		—		—			3,997
Total cash equivalents	$	27,415	$	—	$	—		$	27,415

Short-term investments:
U.S. treasury securities	$	135,512	$	—	$	(97	)	$	135,415
U.S. government agency securities	39,285		—		(65		)	39,220
Corporate debt securities	96,774		—		(155		)	96,619
Total short-term investments	$	271,571	$	—	$	(317	)	$	271,254

Total cash equivalents and short-term investments	$	298,986	$	—	$	(317	)	$	298,669

Cash equivalents and short-term investments consisted of the following as of July 31, 2018:



	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Cash equivalents:
Money market funds	$	74,408	$	—	$	—		$	74,408
U.S. treasury securities	17,488		—		—			17,488
U.S. government agency securities	1,999		—		—			1,999
Corporate debt securities	11,010		—		(1		)	11,009
Total cash equivalents	$	104,905	$	—	$	(1	)	$	104,904

Short-term investments:
U.S. treasury securities	$	55,768	$	—	$	(17	)	$	55,751
U.S. government agency securities	17,953		—		(19		)	17,934
Corporate debt securities	89,362		1		(88		)	89,275
Total short-term investments	$	163,083	$	1	$	(124	)	$	162,960

Total cash equivalents and short-term investments	$	267,988	$	1	$	(125	)	$	267,864

Schedule of Maturities



	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Cash equivalents:
Money market funds	$	74,408	$	—	$	—		$	74,408
U.S. treasury securities	17,488		—		—			17,488
U.S. government agency securities	1,999		—		—			1,999
Corporate debt securities	11,010		—		(1		)	11,009
Total cash equivalents	$	104,905	$	—	$	(1	)	$	104,904

Short-term investments:
U.S. treasury securities	$	55,768	$	—	$	(17	)	$	55,751
U.S. government agency securities	17,953		—		(19		)	17,934
Corporate debt securities	89,362		1		(88		)	89,275
Total short-term investments	$	163,083	$	1	$	(124	)	$	162,960

Total cash equivalents and short-term investments	$	267,988	$	1	$	(125	)	$	267,864

The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of October 31, 2018:



	Amortized Cost		Fair Value
	(in thousands)
Due within one year	$	215,368	$	215,169
Due between one and two years	56,203		56,085
Total short-term investments	$	271,571	$	271,254

Schedule of Unrealized Loss on Investments

Short-term investments that were in an unrealized loss position consisted of the following as of October 31, 2018:



	Less than 12 Months					Greater than 12 Months				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. treasury securities	$	135,415	$	(97	)	$	—	$	—	$	135,415	$	(97	)
U.S. government agency securities	39,220		(65		)	—		—		39,220		(65		)
Corporate debt securities	94,557		(155		)	—		—		94,557		(155		)
Total investments in a loss position	$	269,192	$	(317	)	$	—	$	—	$	269,192	$	(317	)

Short-term investments that were in an unrealized loss position consisted of the following as of July 31, 2018:



	Less than 12 Months					Greater than 12 Months				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. treasury securities	$	55,750	$	(17	)	$	—	$	—	$	55,750	$	(17	)
U.S. government agency securities	17,934		(19		)	—		—		17,934		(19		)
Corporate debt securities	83,332		(88		)	—		—		83,332		(88		)
Total investments in a loss position	$	157,016	$	(124	)	$	—	$	—	$	157,016	$	(124	)

Fair Value Measurements (Tables)

3 Months Ended

Oct. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

Assets that are measured at fair value on a recurring basis consisted of the following as of October 31, 2018:



			Level I		Level II		Level III
	Total		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(in thousands)
Cash equivalents:
Money market funds	$	23,418	$	23,418	$	—	$	—
U.S. treasury securities	3,997		—		3,997		—
Total cash equivalents	$	27,415	$	23,418	$	3,997	$	—

Short-term investments:
U.S. treasury securities	$	135,415	$	—	$	135,415	$	—
U.S. government agency securities	39,220		—		39,220		—
Corporate debt securities	96,619		—		96,619		—
Total short-term investments	$	271,254	$	—	$	271,254	$	—

Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2018:



			Level I		Level II		Level III
	Total		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(in thousands)
Cash equivalents:
Money market funds	$	74,408	$	74,408	$	—	$	—
U.S. treasury securities	17,488		—		17,488		—
U.S. government agency securities	1,999		—		1,999		—
Corporate debt securities	11,009		—		11,009		—
Total cash equivalents	$	104,904	$	74,408	$	30,496	$	—

Short-term investments:
U.S. treasury securities	$	55,751	$	—	$	55,751	$	—
U.S. government agency securities	17,934		—		17,934		—
Corporate debt securities	89,275		—		89,275		—
Total short-term investments	$	162,960	$	—	$	162,960	$	—

Property and Equipment (Tables)

3 Months Ended

Oct. 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consisted of the following:



	October 31, 2018			July 31, 2018
	(in thousands)
Hosting equipment	$	36,830		$	30,743
Computers and equipment	2,398			2,335
Purchased software	1,321			1,324
Capitalized internal-use software	6,519			6,163
Furniture and fixtures	1,477			1,478
Leasehold improvements	2,123			2,123
Property and equipment, gross	50,668			44,166
Less: Accumulated depreciation and amortization	(26,536		)	(24,401		)
Total property and equipment, net	$	24,132		$	19,765

Acquired Intangible Assets, Net (Tables)

3 Months Ended

Oct. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets

The gross carrying amount and accumulated amortization of acquired intangible assets consisted of the following as of October 31, 2018:



	Gross Carrying Amount		Accumulated Amortization			Net Book Value
	(in thousands)
Developed technology	$	1,716	$	(95	)	$	1,621

Schedule of Future Amortization Expense

Future amortization expense of acquired intangible assets consisted of the following as of October 31, 2018:



	Amortization
Year ending July 31,	(in thousands)
2019 (remaining nine months)	$	430
2020	572
2021	572
2022	47
Total	$	1,621

Commitments and Contingencies (Tables)

3 Months Ended

Oct. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum payments under our non-cancelable operating leases consisted of the following as of October 31, 2018:



	Operating Leases
	(in thousands)
Year ending July 31,
2019 (remaining nine months)	$	2,296
2020	2,466
2021	1,581
2022	18
Total	$	6,361

Schedule of Future Minimum Payments for Other Commitments

Future minimum payments under our non-cancelable data center contracts consisted of the following as of October 31, 2018:



	Data Center Contracts
	(in thousands)
Year ending July 31,
2019 (remaining nine months)	$	5,435
2020	4,860
2021	2,672
2022	483
Total	$	13,450

Common Stock (Tables)

3 Months Ended

Oct. 31, 2018

Equity [Abstract]

Schedule of Common Stock Reserved for Future Issuance

As of October 31, 2018, shares of common stock reserved for future issuance consisted of the following:



	October 31, 2018
	(in thousands)
Equity awards outstanding:
Stock options	13,417
Unvested restricted stock units	2,636
Unvested performance stock units, based on the target number of shares granted (*)	1,175
Purchase rights committed under the employee stock purchase plan	1,973
Equity awards available for future grants:
Equity incentive plans	17,010
Employee stock purchase plan	1,425
Total reserved shares of common stock for future issuance	37,636

_____

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Stock Based Compensation (Tables)

3 Months Ended

Oct. 31, 2018

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Stock Options

The activity of stock options consisted of the following:



	Outstanding Stock Options		Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
	(in thousands, except per share data)
Balance as of July 31, 2018	16,175		$6.20	5.1	$	470,860
Stock options exercised	(2,350	)	$4.17		$	87,739
Repurchases of unvested shares	—		$2.63
Stock options canceled, forfeited, expired	(408	)	$6.26
Balance as of October 31, 2018	13,417		$6.56	5.1	$	398,958
Exercisable and expected to vest as of July 31, 2018	5,499		$3.97	4.0	$	172,317
Exercisable and expected to vest as of October 31, 2018	4,027		$4.20	4.0	$	129,225

Schedule of Restricted Stock Units Activity

The RSU activity for the three months ended October 31, 2018 consisted of the following:



	Number of Shares		Weighted-Average Grant Date Fair Value per Share	Aggregate Intrinsic Value
	(in thousands, except per share data)
Balance as of July 31, 2018	209		$26.26	$	7,394
Granted	2,449		$41.15
Vested	—		—
Canceled, forfeited	(22	)	$41.34
Balance as of October 31, 2018	2,636		$39.97	$	95,674

Schedule of Unvested Performance Stock Units

As of October 31, 2018, the number of unvested PSUs outstanding based on the target number of shares granted consisted of the following:



	Shares
Performance periods:	(in thousands)
Fiscal 2019	438
Fiscal 2020	437
Fiscal 2021	150
Fiscal 2022	150
Total	1,175

Schedule of Performance Stock Units Activity

The following table presents the activity of PSUs for which performance conditions have been established and are expected to be earned:



	Three Months Ended October 31, 2018
	Number of Shares	Weighted-Average Grant Date Fair Value per Share	Aggregate Intrinsic Value
	(in thousands, except per share data)
Balance as of July 31, 2018	—	—	$	—
Granted	438	$37.04
Vested	—	—	$	—
Canceled, forfeited	—	—
Balance as of October 31, 2018	438	$37.04	$	15,877

Schedule of Allocation of Stock-based Compensation Expense

The components of stock-based compensation expense recognized in the condensed consolidated statements of operations consisted of the following:



	Three Months Ended October 31,
	2018		2017
	(in thousands)
Cost of revenue	$	503	$	109
Sales and marketing	2,801		785
Research and development	2,795		398
General and administrative	1,487		441
Total stock-based compensation expense	$	7,586	$	1,733

Outstanding stock options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Valuation Assumptions

We estimated the fair value of employee stock option using the Black-Scholes option pricing model with the following assumptions.



	Three Months Ended October 31, 2017
Expected term (in years)	4.6
Expected stock price volatility	41.5%
Risk-free interest rate	1.7%
Dividend yield	0.0%

Net Loss Per Share Attributable to Common Stockholders (Tables)

3 Months Ended

Oct. 31, 2018

Earnings Per Share [Abstract]

Schedule of Net Loss Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:



	Three Months Ended October 31,
	2018			2017
	(in thousands)
Net loss	$	(7,588	)	$	(11,398	)
Accretion of Series C and D redeemable convertible preferred stock	—			(2,530		)
Net loss attributable to common stockholders	$	(7,588	)	$	(13,928	)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	120,587			30,793
Net loss per share attributable to common stockholders, basic and diluted	$	(0.06	)	$	(0.45	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	October 31, 2018	October 31, 2017
	(in thousands)
Convertible preferred stock	—	72,501
Outstanding stock options	13,418	14,654
Shares subject to repurchase from early exercised stock options	324	1,146
Purchase rights committed under the ESPP	1,973	—
Unvested RSUs	2,636	—
Unvested PSUs (*)	438	—
Total	18,789	88,301

_____

Significant Customers and Geographic Information (Tables)

3 Months Ended

Oct. 31, 2018

Risks and Uncertainties [Abstract]

Schedule of Accounts Receivable

The following table summarizes 10% or more of the total balance of accounts receivable, net:



	October 31, 2018	July 31, 2018
Channel partner A	12%	13%
Channel partner B	11%	*
Channel partner C	10%	*
Channel partner D	*	13%

_____

^(*) Represents less than 10%.

Schedule of Long-Lived Assets

Our long-lived assets are composed of property and equipment, net and acquired intangible assets, net and are summarized by geographic area as follows:



	October 31, 2018		July 31, 2018
	(in thousands)
United States	$	19,000	$	14,742
Rest of the world	6,753		5,023
Total long-lived assets	$	25,753	$	19,765

Business and Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		12 Months Ended
	Mar. 31, 2018 $ / shares shares	Mar. 31, 2018 USD ($) $ / shares shares	Oct. 31, 2018 USD ($)	Oct. 31, 2017 USD ($)	Jul. 31, 2018 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reverse stock split, ratio		0.6667
Sale of stock, number of shares issued in transaction (in shares) \| shares		13,800,000
Sale of stock, price per share (in dollars per share) \| $ / shares	$ 16.00	$ 16.00
Net proceeds from shares sold		$ 205,300
Payments of costs related to initial public offering		15,500	$ 230	$ 1,443
Offering costs		$ 6,500			$ 6,500
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) \| shares	72,500,750
Conversion ratio		1
Contract with customer, liability, revenue recognized			53,800	34,100
Revenue, remaining performance obligation			411,200
Accrued sales commissions			3,600		10,000
Cumulative effect of new accounting principle			$ 0	$ 0
Sales Revenue, Net \| Geographic Concentration Risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk percentage			100.00%	100.00%
Subscription and Support \| Transferred over Time \| Sales Revenue, Net \| Product Concentration Risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk percentage			99.00%	98.00%
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle			$ 300	$ (438)
Additional Paid-In Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle			$ (300)	$ 438
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract with customer, term of contract			1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract with customer, term of contract			3 years
ASU 2018-07 \| Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle					300
ASU 2018-07 \| Additional Paid-In Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle					$ (300)
United Kingdom \| Sales Revenue, Net \| Geographic Concentration Risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk percentage			10.00%	11.00%

Business and Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 63,298	$ 39,861
Channel partners
Disaggregation of Revenue [Line Items]
Revenue	60,019	36,171
Direct customers
Disaggregation of Revenue [Line Items]
Revenue	$ 3,279	$ 3,690
Geographic Concentration Risk \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	100.00%	100.00%
Customer Concentration Risk \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	100.00%	100.00%
Customer Concentration Risk \| Sales Revenue, Net \| Channel partners
Disaggregation of Revenue [Line Items]
Concentration risk percentage	95.00%	91.00%
Customer Concentration Risk \| Sales Revenue, Net \| Direct customers
Disaggregation of Revenue [Line Items]
Concentration risk percentage	5.00%	9.00%
United States
Disaggregation of Revenue [Line Items]
Revenue	$ 29,807	$ 18,986
United States \| Geographic Concentration Risk \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	47.00%	47.00%
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenue	$ 27,394	$ 17,664
Europe, Middle East and Africa \| Geographic Concentration Risk \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	43.00%	44.00%
Asia Pacific
Disaggregation of Revenue [Line Items]
Revenue	$ 4,789	$ 3,124
Asia Pacific \| Geographic Concentration Risk \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	8.00%	8.00%
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 1,308	$ 87
Other \| Geographic Concentration Risk \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	2.00%	1.00%

Business and Summary of Significant Accounting Policies - Summary of Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Jul. 31, 2018	Oct. 31, 2017
Changes in Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 55,910	$ 34,662
Capitalization of contract acquisition costs	4,392	4,208
Amortization of deferred contract acquisition costs	(4,324)	(2,868)
Ending balance	55,978	36,002
Deferred contract acquisition costs, current			$ 16,387	$ 16,136	$ 10,815
Deferred contract acquisition costs, noncurrent			39,591	39,774	25,187
Total deferred contract acquisition costs	$ 55,910	$ 34,662	$ 55,978	$ 55,910	$ 36,002

Business and Summary of Significant Accounting Policies - Remaining Performance Obligation (Details)	3 Months Ended
	Oct. 31, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	54.00%
Recognized transaction price period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	97.00%
Recognized transaction price period	3 years

Cash Equivalents and Short-Term Investments - Schedule of Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Cash equivalents, amortized cost	$ 27,415	$ 104,905
Cash equivalents, unrealized gains	0	0
Cash equivalents, unrealized losses	0	(1)
Cash equivalents	27,415	104,904
Short-term investments, amortized cost basis	271,571	163,083
Short-term investment, unrealized gains	0	1
Short-term investments, unrealized losses	(317)	(124)
Short-term investments	271,254	162,960
Cash equivalents and short-term investments, amortized cost	298,986	267,988
Cash equivalents and short-term investments, unrealized gains	0	1
Cash equivalents and short-term investments, unrealized losses	(317)	(125)
Cash equivalents and short-term investments, estimated fair value	298,669	267,864
Money market funds
Debt Securities, Available-for-sale [Line Items]
Cash equivalents, amortized cost	23,418	74,408
Cash equivalents, unrealized gains	0	0
Cash equivalents, unrealized losses	0	0
Cash equivalents	23,418	74,408
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Cash equivalents, amortized cost	3,997	17,488
Cash equivalents, unrealized gains	0	0
Cash equivalents, unrealized losses	0	0
Cash equivalents	3,997	17,488
Short-term investments, amortized cost basis	135,512	55,768
Short-term investment, unrealized gains	0	0
Short-term investments, unrealized losses	(97)	(17)
Short-term investments	135,415	55,751
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Cash equivalents, amortized cost		1,999
Cash equivalents, unrealized gains		0
Cash equivalents, unrealized losses		0
Cash equivalents		1,999
Short-term investments, amortized cost basis	39,285	17,953
Short-term investment, unrealized gains	0	0
Short-term investments, unrealized losses	(65)	(19)
Short-term investments	39,220	17,934
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Cash equivalents, amortized cost		11,010
Cash equivalents, unrealized gains		0
Cash equivalents, unrealized losses		(1)
Cash equivalents		11,009
Short-term investments, amortized cost basis	96,774	89,362
Short-term investment, unrealized gains	0	1
Short-term investments, unrealized losses	(155)	(88)
Short-term investments	$ 96,619	$ 89,275

Cash Equivalents and Short-Term Investments - Schedule of Maturities (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Amortized Cost
Due within one year, cost basis	$ 215,368
Due between one and two years, cost basis	56,203
Short-term investments, amortized cost basis	271,571	$ 163,083
Fair Value
Due within one year, fair value	215,169
Due between one and two years, fair value	56,085
Total short-term investments, fair value	$ 271,254	$ 162,960

Cash Equivalents and Short-Term Investments - Schedule of Unrealized Position (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	$ 269,192	$ 157,016
Less than 12 months, unrealized losses	(317)	(124)
Greater than 12 months, fair value	0	0
Greater than 12 months, unrealized losses	0	0
Total fair value	269,192	157,016
Total unrealized losses	(317)	(124)
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	135,415	55,750
Less than 12 months, unrealized losses	(97)	(17)
Greater than 12 months, fair value	0	0
Greater than 12 months, unrealized losses	0	0
Total fair value	135,415	55,750
Total unrealized losses	(97)	(17)
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	39,220	17,934
Less than 12 months, unrealized losses	(65)	(19)
Greater than 12 months, fair value	0	0
Greater than 12 months, unrealized losses	0	0
Total fair value	39,220	17,934
Total unrealized losses	(65)	(19)
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	94,557	83,332
Less than 12 months, unrealized losses	(155)	(88)
Greater than 12 months, fair value	0	0
Greater than 12 months, unrealized losses	0	0
Total fair value	94,557	83,332
Total unrealized losses	$ (155)	$ (88)

Fair Value Measurements (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Cash equivalents:
Money market funds	$ 27,415	$ 104,904
Short-term investments	271,254	162,960
Fair Value, Measurements, Recurring
Cash equivalents:
Money market funds	27,415	104,904
Short-term investments	271,254	162,960
Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Money market funds	23,418	74,408
Short-term investments	0	0
Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Money market funds	3,997	30,496
Short-term investments	271,254	162,960
Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Money market funds	0	0
Short-term investments	0	0
Money market funds
Cash equivalents:
Money market funds	23,418	74,408
Money market funds \| Fair Value, Measurements, Recurring
Cash equivalents:
Money market funds	23,418	74,408
Money market funds \| Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Money market funds	23,418	74,408
Money market funds \| Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Money market funds	0	0
Money market funds \| Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Money market funds	0	0
U.S. treasury securities
Cash equivalents:
Money market funds	3,997	17,488
Short-term investments	135,415	55,751
U.S. treasury securities \| Fair Value, Measurements, Recurring
Cash equivalents:
Money market funds	3,997	17,488
Short-term investments	135,415	55,751
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Money market funds	0	0
Short-term investments	0	0
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Money market funds	3,997	17,488
Short-term investments	135,415	55,751
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Money market funds	0	0
Short-term investments	0	0
U.S. government agency securities
Cash equivalents:
Money market funds		1,999
Short-term investments	39,220	17,934
U.S. government agency securities \| Fair Value, Measurements, Recurring
Cash equivalents:
Money market funds		1,999
Short-term investments	39,220	17,934
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Money market funds		0
Short-term investments	0	0
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Money market funds		1,999
Short-term investments	39,220	17,934
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Money market funds		0
Short-term investments	0	0
Corporate debt securities
Cash equivalents:
Money market funds		11,009
Short-term investments	96,619	89,275
Corporate debt securities \| Fair Value, Measurements, Recurring
Cash equivalents:
Money market funds		11,009
Short-term investments	96,619	89,275
Corporate debt securities \| Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Money market funds		0
Short-term investments	0	0
Corporate debt securities \| Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Money market funds		11,009
Short-term investments	96,619	89,275
Corporate debt securities \| Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Money market funds		0
Short-term investments	$ 0	$ 0

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 50,668	$ 44,166
Less: Accumulated depreciation and amortization	(26,536)	(24,401)
Total property and equipment, net	24,132	19,765
Hosting equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	36,830	30,743
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,398	2,335
Purchased software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,321	1,324
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,519	6,163
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,477	1,478
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,123	$ 2,123

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 2,170	$ 1,921

Acquired Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization expense of acquired intangible assets	$ 95	$ 0
Developed Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average useful lives	2 years 9 months 18 days

Acquired Intangible Assets, Net - Schedule of Acquired Intangible Assets (Details) $ in Thousands	Oct. 31, 2018 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,621
Developed Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,716
Accumulated Amortization	(95)
Net Book Value	$ 1,621

Acquired Intangible Assets, Net - Schedule of Future Amortization Expense (Details) $ in Thousands	Oct. 31, 2018 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019 (remaining nine months)	$ 430
2020	572
2021	572
2022	47
Total	$ 1,621

Commitments and Contingencies - Summary of Future Minimum Payments Under Operating Leases (Details) $ in Thousands	Oct. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019 (remaining nine months)	$ 2,296
2020	2,466
2021	1,581
2022	18
Total	$ 6,361

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Jul. 31, 2018	Jul. 31, 2017
Loss Contingencies [Line Items]
Rent expense	$ 0.7	$ 0.5
Bandwidth and colocation costs	2.9	$ 2.1
Purchase obligation	3.9		$ 3.1
Finjan Litigation
Loss Contingencies [Line Items]
Accrued liability for potential lawsuit loss	$ 3.2
Loss Contingency, Loss in Period			$ 0.7	$ 2.5

Commitments and Contingencies - Future Minimum Payments Due Under Data Center Contracts (Details) $ in Thousands	Oct. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019 (remaining nine months)	$ 5,435
2020	4,860
2021	2,672
2022	483
Total	$ 13,450

Preferred Stock (Details) $ in Thousands		1 Months Ended	3 Months Ended
Preferred Stock (Details) $ in Thousands	Mar. 31, 2018 USD ($) shares	Mar. 31, 2018 USD ($)	Oct. 31, 2017 USD ($)	Oct. 31, 2018 USD ($)	Jul. 31, 2018 USD ($)	Jul. 31, 2017 USD ($)
Temporary Equity Disclosure [Abstract]
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) \| shares	72,500,750
Conversion ratio		1
Temporary equity, carrying value	$ 207,300	$ 207,300	$ 203,507	$ 0	$ 0	$ 200,977
Temporary equity, accretion value		$ 24,700
Accretion of Series C and D redeemable convertible preferred stock			$ 2,530

Common Stock (Details)	Oct. 31, 2018 vote
Equity [Abstract]
Common stock, number of votes per share	1

Common Stock - Schedule of Common Stock Reserved for Future Issuance (Details) - shares	3 Months Ended
	Oct. 31, 2018	Jul. 31, 2018
Subsidiary, Sale of Stock [Line Items]
Equity awards outstanding (in shares)	13,417,000	16,175,000
Equity awards available for future grants (in shares)	37,636,000
Outstanding stock options
Subsidiary, Sale of Stock [Line Items]
Equity awards outstanding (in shares)	13,417,000
Unvested restricted stock units
Subsidiary, Sale of Stock [Line Items]
Equity awards outstanding (in shares)	2,636,000
Unvested performance stock units, based on the target number of shares originally granted
Subsidiary, Sale of Stock [Line Items]
Equity awards outstanding (in shares)	1,175,000
Percentage of shares originally granted	150.00%
Employee stock purchase plan
Subsidiary, Sale of Stock [Line Items]
Equity awards outstanding (in shares)	1,973,000
Equity awards available for future grants (in shares)	1,425,000
Equity incentive plans
Subsidiary, Sale of Stock [Line Items]
Equity awards available for future grants (in shares)	17,010,000

Stock Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2018 USD ($) period $ / shares shares	Oct. 31, 2017 USD ($) $ / shares	Jul. 31, 2018 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercised, aggregate intrinsic value	$ 87,739	$ 2,000
Weighted average grant date fair value (in dollars per share) \| $ / shares		$ 2.03
Vesting of early exercised stock options	$ 290	$ 548
Interest receivable			$ 100
Outstanding notes receivable, carrying amount			2,100
Repurchases of unvested shares (in dollars per share) \| $ / shares	$ 2.63
Repayment of loans	$ 2,100
Unrecognized compensation cost	$ 148,600
Unrecognized compensation cost, weighted-average	3 years 8 months 12 days
Unvested restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Unvested performance stock units, based on the target number of shares originally granted
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares originally granted	150.00%
Outstanding stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Outstanding stock options \| 2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration term	10 years
Outstanding stock options \| 2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration term	7 years
Employee Stock \| 2018 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) \| shares	3,397,643
Purchase price of common stock, percent	85.00%
Duration of offering period	24 months
Number of purchases periods \| period	4
Duration of purchase periods	6 months
Accrued compensation	$ 7,800		$ 4,600
Employee subscription rate, maximum	15.00%
Maximum number of shares per employee (in shares) \| shares	3,000
Fiscal 2019 \| Unvested restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage	25.00%
Fiscal 2019 \| Outstanding stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage	25.00%
Common Stock \| 2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) \| shares	18,688,216
Common Stock \| 2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock subject to repurchase (in shares) \| shares	323,653		422,528
Shares subject to repurchase, value	$ 1,200		$ 1,600
Additional Paid-In Capital
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting of early exercised stock options	$ 290	$ 548

Stock Based Compensation - Schedule of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Jul. 31, 2018
Outstanding Stock Options
Balance (in shares)	16,175,000
Stock options exercised (in shares)	(2,350,000)
Repurchases of unvested shares (in shares)	0
Stock options canceled, forfeited, expired (in shares)	(408,000)
Balance (in shares)	13,417,000		16,175,000
Exercisable and expected to vest as of July 31, 2018 (in shares)	5,499,000
Exercisable and expected to vest as of October 31, 2018 (in shares)	4,027,000		5,499,000
Weighted-Average Exercise Price
Beginning balance (in dollars per share)	$ 6.20
Stock options exercised (in dollars per share)	4.17
Repurchases of unvested shares (in dollars per share)	2.63
Stock options canceled, forfeited, expired (in dollars per share)	6.26
Ending balance (in dollars per share)	6.56		$ 6.20
Exercisable and expected to vest as of July 31, 2018 (in dollars per share)	3.97
Exercisable and expected to vest as of October 31, 2018 (in dollars per share)	$ 4.20		$ 3.97
Additional Disclosures
Options outstanding, weighted average remaining contractual term	5 years 1 month 6 days		5 years 1 month 6 days
Exercisable and expected to vest, weighted average remaining contractual term	4 years		4 years
Options outstanding, aggregate intrinsic value	$ 398,958		$ 470,860
Options exercised, aggregate intrinsic value	87,739	$ 2,000
Exercisable and expected to vest, aggregate intrinsic value	$ 129,225		$ 172,317

Stock Based Compensation - Valuation Assumptions (Details) - Outstanding stock options	3 Months Ended
	Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years 7 months 6 days
Expected stock price volatility	41.50%
Risk-free interest rate	1.70%
Dividend rate	0.00%

Stock Based Compensation - Schedule of RSU Activity (Details) - Unvested restricted stock units - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2018	Jul. 31, 2018
Number of Shares
Beginning balance (in shares)	209,000
Granted (in shares)	2,449,000
Vested (in shares)	0
Canceled, forfeited (in shares)	(22,000)
Ending balance (in shares)	2,636,000
Weighted-Average Grant Date Fair Value per Share
Balance (in dollars per share)	$ 39.97	$ 26.26
Granted (in dollars per share)	41.15
Vested (in dollars per share)	0.00
Canceled, forfeited (in shares)	$ 41.34
Aggregate Intrinsic Value
Balance	$ 95,674	$ 7,394

Stock Based Compensation - Schedule of Unvested PSUs (Details) shares in Thousands	Oct. 31, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Shares (in shares)	1,175
Fiscal 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Shares (in shares)	438
Fiscal 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Shares (in shares)	437
Fiscal 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Shares (in shares)	150
Fiscal 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Shares (in shares)	150

Stock Based Compensation - Schedule of PSU Activity (Details) - Unvested performance stock units, based on the target number of shares originally granted - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2018	Jul. 31, 2018
Number of Shares
Beginning balance (in shares)	0
Granted (in shares)	438,000
Vested (in shares)	0
Canceled, forfeited (in shares)	0
Ending balance (in shares)	438,000
Weighted-Average Grant Date Fair Value per Share
Balance (in dollars per share)	$ 37.04	$ 0.00
Granted (in dollars per share)	$ 37.04
Aggregate Intrinsic Value
Balance	$ 15,877	$ 0

Stock Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 7,586	$ 1,733
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	503	109
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,801	785
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,795	398
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 1,487	$ 441

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Oct. 31, 2017
Income Tax Disclosure [Abstract]
Statutory income tax rate	21.00%
Provision for income taxes	$ 327	$ 289

Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Earnings Per Share [Abstract]
Net loss	$ (7,588)	$ (11,398)
Accretion of Series C and D redeemable convertible preferred stock	0	(2,530)
Net loss attributable to common stockholders	$ (7,588)	$ (13,928)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)	120,587	30,793
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.06)	$ (0.45)

Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities Excluded from Computation (Details) - shares shares in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	18,789	88,301
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0	72,501
Outstanding stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	13,418	14,654
Shares subject to repurchase from early exercised stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	324	1,146
Purchase rights committed under the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,973	0
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2,636	0
Unvested performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	438	0

Significant Customers and Geographic Information - Schedule of Accounts Receivable (Details) - Customer Concentration Risk - Accounts Receivable

3 Months Ended

12 Months Ended

Oct. 31, 2018

Jul. 31, 2018

Channel partner A

Concentration Risk [Line Items]

Accounts receivable, net

12.00%

13.00%

Channel partner B

Concentration Risk [Line Items]

Accounts receivable, net

11.00%

^[1]

Channel partner C

Concentration Risk [Line Items]

Accounts receivable, net

10.00%

^[1]

Channel partner D

Concentration Risk [Line Items]

Accounts receivable, net

^[1]

13.00%

[1]	less than 10%

Significant Customers and Geographic Information - Schedule of Long-lived Assets (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 25,753	$ 19,765
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	19,000	14,742
Rest of the world
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 6,753	$ 5,023

Label	Element	Value
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	$ 180,000
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	186,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	388,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	$ 292,000