Convertible Senior Notes (Tables)

12 Months Ended

Jul. 31, 2024

Debt Disclosure [Abstract]

Schedule of convertible debt

The net carrying value of the liability component and unamortized debt issuance costs of the Convertible Senior Notes was as follows (in thousands):

	July 31, 2024		July 31, 2023
Principal	$	400,000	$	400,000
Less unamortized:
Debt issuance costs	1,097		2,829
Net carrying amount	$	398,903	$	397,171

The effective interest rate of the Convertible Senior Notes after the adoption of ASU 2020-06 on August 1, 2022 is 1.69%. Prior to the adoption of ASU 2020-06, the effective interest rate of the Convertible Senior Notes was 5.53%.

The following table sets forth the interest expense recognized related to the Convertible Senior Notes (in thousands):

	Fiscal years ended July 31,
	2024		2023		2022
Contractual interest expense	$	5,000	$	5,000	$	5,000
Amortization of debt discount(1)	—		—		12,945
Amortization of debt issuance costs	1,732		1,703		1,446
Total	$	6,732	$	6,703	$	19,391

(1) Effective August 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method which resulted in the accounting for the Convertible Senior Notes as a single liability and no longer required the liability and equity components to be accounted for separately. The prior periods have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for each respective period.