XML 31 R12.htm IDEA: XBRL DOCUMENT v3.22.1
Balance Sheet Components
 9 Months Ended
Apr. 30, 2022
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components Balance Sheet Components
Accounts Receivables, Net

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

April 30, 2022July 31, 2021
Accounts receivable$86,165 $105,125 
Allowance for credit losses and revenue reserves(462)(1,057)
Accounts receivable, net$85,703 $104,068 

Allowance for Credit Losses and Revenue Reserves

Changes to the allowance for credit losses and revenue reserves consists of the following (in thousands):
Balance as of July 31, 2021$1,057 
Net changes to credit losses(1)
2,957 
Net changes to revenue reserves(246)
Write-offs, net(1)
(3,306)
Balance as of April 30, 2022$462 
(1) Includes $3.0 million due to a contract termination as a result of United States government sanctions on Russia.

Prepaid Expenses and Other Current Assets

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

April 30, 2022July 31, 2021
Prepaid expenses$21,860 $20,330 
Contract costs14,948 13,365 
Deferred costs10,260 9,247 
Deposits and other receivables11,192 9,787 
Prepaid expenses and other current assets$58,260 $52,729 

Property and Equipment, Net

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

April 30, 2022July 31, 2021
Computer hardware$14,027 $19,256 
Purchased software5,477 6,002 
Capitalized software development costs34,747 24,025 
Equipment and machinery8,633 12,214 
Furniture and fixtures11,311 11,482 
Leasehold improvements58,688 57,960 
Total property and equipment132,883 130,939 
Less accumulated depreciation(52,804)(50,878)
Property and equipment, net$80,079 $80,061 

As of April 30, 2022 and July 31, 2021, no property and equipment was pledged as collateral. Depreciation expense, excluding the amortization of capitalized software development costs, was $3.6 million and $3.4 million for the three months ended April 30, 2022 and 2021, respectively, and $10.8 million and $10.5 million for the nine months ended April 30, 2022 and 2021, respectively.

The Company recognized amortization expense related to capitalized software development costs in cost of subscription and support revenue on the condensed consolidated statements of operations of $1.6 million and $0.9 million during the three months ended April 30, 2022 and 2021, respectively, and $4.3 million and $2.3 million during the nine months ended April 30, 2022 and 2021, respectively.

Goodwill and Intangible Assets, Net

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

Goodwill, July 31, 2021$340,877 
   Addition — HazardHub acquisition31,312 
Goodwill, April 30, 2022$372,189 
The Company’s intangible assets are amortized over their estimated useful lives. Intangible assets consist of the following (in thousands):

April 30, 2022July 31, 2021
Remaining Weighted-Average Useful Life (in years)CostAccumulated AmortizationNet Book ValueCostAccumulated AmortizationNet Book Value
Intangible assets:
Acquired technology3.4$38,100 $26,921 $11,179 $93,600 $86,367 $7,233 
Customer contracts and related relationships3.840,800 29,599 11,201 35,700 24,432 11,268 
Partner relationships2.9200 135 65 200 119 81 
Trademarks4.33,400 1,697 1,703 2,500 1,339 1,161 
Order backlog—— — — 8,700 8,700 — 
Total3.6$82,500 $58,352 $24,148 $140,700 $120,957 $19,743 

Amortization expense was $3.8 million and $3.9 million for the three months ended April 30, 2022 and 2021, respectively, and $11.3 million and $16.6 million for the nine months ended April 30, 2022 and 2021, respectively. The future amortization expense for existing intangible assets as of April 30, 2022, based on their current useful lives, is as follows (in thousands):

Fiscal year ending July 31,
   2022 (remainder of fiscal year)$2,787 
   20236,888 
   20245,468 
   20255,026 
   20263,572 
   Thereafter407 
Total$24,148 

Other assets

Other assets consist of the following (in thousands):

April 30, 2022July 31, 2021
Prepaid expenses$2,737 $3,276 
Contract costs28,564 28,870 
Deferred costs1,253 2,777 
Strategic equity investments14,077 3,556 
Other4,976 — 
Other assets$51,607 $38,479 

The Company’s other assets include strategic equity investments in privately-held companies in which the Company does not have a controlling interest or the ability to exert significant influence. The strategic investments consist of non-marketable equity securities that do not have readily determinable market values (Level 3). The Company records these strategic investments at cost less impairment and adjusts cost for subsequent observable changes in fair value. During the three months ended April 30, 2022, the Company did not invest in any new strategic investments. No impairment charges related to strategic investments were recognized during the three and nine months ended April 30, 2022 and 2021.
Accrued Employee Compensation
Accrued employee compensation consists of the following (in thousands):
April 30, 2022July 31, 2021
Bonus$38,692 $48,414 
Commission1,908 11,271 
Vacation*
5,568 23,803 
Salaries, payroll taxes, and benefits21,771 18,649 
Accrued employee compensation$67,939 $102,137 
*In the first quarter of fiscal year 2022, the Company paid out accrued vacation for employees in certain countries upon adopting a non-accrued vacation policy effective September 1, 2021.

Other Current Liabilities

Other current liabilities consist of the following (in thousands):
April 30, 2022July 31, 2021
Lease liabilities$11,372 $11,624 
Accrued royalties9,583 7,525 
Accrued taxes1,978 6,796 
Other4,284 5,703 
Other current liabilities$27,217 $31,648