Goodwill and Acquired Intangible Assets

12 Months Ended

Jul. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

Goodwill and Acquired Intangible Assets

Goodwill

Changes in the carrying amount of goodwill consisted of the following:

	Amount
	(in thousands)
Balance as of July 31, 2023	$	89,192
Goodwill acquired	327,837
Balance as of July 31, 2024	$	417,029

Acquired Intangible Assets

Acquired intangible assets consist of developed technology and customer relationships acquired through our business acquisitions and asset acquisitions. Acquired intangible assets are amortized using the straight-line method over their estimated useful lives.

During fiscal 2024, in connection with the acquisition of Airgap, Avalor and Securelyshare, we acquired developed technology and customer relationships with a fair value of $46.2 million and $6.4 million, respectively, and each of them with an estimated useful life of five years. For further information refer to Note 6, Business Combinations.

Changes in acquired intangible assets for July 31, 2024 and 2023, consisted of the following:

	Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount				Weighted Average Remaining Useful life
	July 31, 2023		Additions		July 31, 2024		July 31, 2023		Amortization Expense		July 31, 2024		July 31, 2023		July 31, 2024		July 31, 2024
	(in thousands)																(years)
Developed technology	$	53,456	$	46,200	$	99,656	$	(29,259)	$	(13,392)	$	(42,651)	$	24,197	$	57,005	4.2
Customer relationships	3,560		6,400		9,960		(1,898)		(1,232)		(3,130)		1,662		6,830		4.4
Total	$	57,016	$	52,600	$	109,616	$	(31,157)	$	(14,624)	$	(45,781)	$	25,859	$	63,835	4.2

As of July 31, 2023, the weighted-average remaining useful life for developed technology and customer relationships was 3.0 years and 2.3 years, respectively.

Amortization expense of acquired intangible assets was $14.6 million, $11.1 million and $9.0 million in fiscal 2024, fiscal 2023 and fiscal 2022, respectively. Amortization expense of developed technology and customer relationships is included primarily within cost of revenue and sales and marketing expenses, respectively, in the consolidated statements of operations.

Future amortization expense of acquired intangible assets as of July 31, 2024 consists of the following:

	Amount
	(in thousands)
Fiscal Year ending July 31,
2025	$	16,785
2026	15,772
2027	12,948
2028	11,115
2029	7,215
Total	$	63,835