Convertible Senior Notes (Tables)

9 Months Ended

Apr. 30, 2022

Debt Instrument [Line Items]

Net Proceeds from Notes

The total net proceeds from the issuance of the 2023 Notes were as follows:

	Amount
	(in thousands)
Principal amount	$	575,000
Less: initial purchasers' discount		(10,781	)
Less: cost of the bond hedges		(143,175	)
Add: proceeds from the sale of warrants		87,975
Less: other issuance costs		(707	)
Net proceeds	$	508,312

2023 Convertible Senior Notes

Debt Instrument [Line Items]

Components of Notes

The 2023 Notes consisted of the following:

	As of
	July 31, 2021			April 30, 2022
	(in thousands)
Principal amounts:
Principal	$	575,000		$	145,704
Unamortized debt discount (1)		(48,616	)		—
Unamortized debt issuance costs (1)		(2,713	)		(396	)
Net carrying amount	$	523,671		$	145,308
Carrying amount of equity component (2)	$	148,598		$	—

(1)Included in the condensed consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2023 Notes using the effective interest rate method. As of July 31, 2021, the effective interest rate was 6.62%. As of April 30, 2022, the effective interest rate was 0.41%.

(2)Included in the consolidated balance sheet as of July 31, 2021 within additional paid-in capital, net of $3.0 million in equity issuance costs.

Interest Expense Recognized

The following table sets forth the total interest expense recognized related to the 2023 Notes:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2021		2022		2021		2022
	(in thousands)
Interest expense related to amortization of debt discount	$	7,985	$	—	$	23,564	$	—
Interest expense related to amortization of debt issuance    costs		446		148		1,315		696
Total interest expense	$	8,431	$	148	$	24,879	$	696

2026 Convertible Senior Notes

Debt Instrument [Line Items]

Components of Notes

The 2026 Notes consisted of the following:

	As of
	July 31, 2021			April 30, 2022
	(in thousands)
Principal amounts:
Principal	$	750,000		$	750,000
Non-cash interest expense converted to principal		8,906			27,997
Unamortized debt discount (conversion feature) (1)		(203,619	)		(178,210	)
Unamortized debt issuance costs (1)		(23,264	)		(20,361	)
Net carrying amount	$	532,023		$	579,426

(1)Included in the condensed consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2026 Notes using the effective interest rate method. The effective interest rate is 7.05%.

Interest Expense Recognized

The following table sets forth the total interest expense recognized related to the 2026 Notes:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2021		2022		2021		2022
	(in thousands)
Interest expense related to amortization of debt discount	$	8,034	$	8,619	$	19,115	$	25,408
Interest expense related to amortization of debt issuance costs		917		985		2,184		2,904
Non-cash interest expense		4,716		4,833		11,331		14,408
Total interest expense	$	13,667	$	14,437	$	32,630	$	42,720

2027 Convertible Senior Notes

Debt Instrument [Line Items]

Components of Notes

The 2027 Notes consisted of the following:

	As of April 30, 2022
	(in thousands)
Principal amounts:
Principal	$	575,000
Unamortized debt issuance costs (1)		(8,376	)
Net carrying amount	$	566,624

(1)Included in the condensed consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2027 Notes using the effective interest rate method. The effective interest rate is 0.52%.

Interest Expense Recognized

The following table sets forth the total interest expense recognized related to the 2027 Notes:

	Three Months Ended April 30,		Nine Months Ended April 30,
	2022		2022
	(in thousands)
Contractual interest expense	$	359	$	870
Interest expense related to amortization of debt issuance costs		381		921
Total interest expense	$	740	$	1,791