v3.25.1
Fair Value of Financial Instruments
 9 Months Ended
Apr. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Available-for-sale investments within cash equivalents and investments consist of the following (in thousands):
April 30, 2025
Amortized CostUnrealized GainsUnrealized LossesEstimated Fair Value
Asset-backed securities$63,466 $112 $(17)$63,561 
Certificates of deposit64,660 — — 64,660 
Commercial paper139,574 — — 139,574 
Corporate bonds405,102 1,121 (97)406,126 
Foreign government bonds1,819 22 — 1,841 
Money market funds334,743 — — 334,743 
U.S. Government agency securities44,329 53 (14)44,368 
U.S. Government bonds84,478 195 (4)84,669 
     Total$1,138,171 $1,503 $(132)$1,139,542 
July 31, 2024
Amortized CostUnrealized GainsUnrealized LossesEstimated Fair Value
Asset-backed securities$58,812 $116 $(61)$58,867 
Certificates of deposit46,900 — — 46,900 
Commercial paper138,598 — — 138,598 
Corporate bonds245,817 564 (107)246,274 
Foreign government bonds5,590 21 (15)5,596 
Money market funds360,881 — — 360,881 
U.S. Government agency securities33,499 12 (12)33,499 
U.S. Government bonds89,928 72 (117)89,883 
    Total$980,025 $785 $(312)$980,498 
The Company does not consider any portion of the unrealized losses at April 30, 2025 to be credit losses. The Company has recorded the securities at fair value in its condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss). The amount of unrealized gains and losses reclassified into earnings are based on the specific identification of the securities sold. The realized gains and losses from sales of securities are presented in the condensed consolidated statements of comprehensive income (loss).
The following table summarizes the contractual maturities of the Company’s available-for-sale investments measured at fair value (in thousands):
April 30, 2025
Less Than 12 Months12 Months or GreaterTotal
Asset-backed securities$12,320 $51,241 $63,561 
Certificates of deposit64,660 — 64,660 
Commercial paper139,574 — 139,574 
Corporate bonds205,384 200,742 406,126 
Foreign government bonds— 1,841 1,841 
Money market funds334,743 — 334,743 
U.S. Government agency securities5,332 39,036 44,368 
U.S. Government bonds54,224 30,445 84,669 
     Total$816,237 $323,305 $1,139,542 
Fair Value Measurement
Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.
The Company applies the three-level valuation hierarchy when measuring the fair value of certain assets and liabilities:
Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2—Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and
Level 3—Unobservable inputs that are supported by little or no market activity, which require the Company to develop its own assumptions.
Available-for-sale investments
The following tables summarize the Company’s available-for-sale investments measured at fair value, by level within the fair value hierarchy (in thousands):
April 30, 2025
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$— $70,157 $— $70,157 
Corporate bonds— 1,221 — 1,221 
Money market funds334,743 — — 334,743 
Total cash equivalents334,743 71,378 — 406,121 
Short-term investments:
Asset-backed securities— 12,320 — 12,320 
Certificates of deposit— 64,660 — 64,660 
Commercial paper— 69,417 — 69,417 
Corporate bonds— 204,163 — 204,163 
U.S. Government agency securities— 5,332 — 5,332 
U.S. Government bonds— 54,224 — 54,224 
Total short-term investments— 410,116 — 410,116 
Long-term investments:
Asset-backed securities— 51,241 — 51,241 
Corporate bonds— 200,742 — 200,742 
Foreign government bonds— 1,841 — 1,841 
U.S. Government agency securities— 39,036 — 39,036 
U.S. Government bonds— 30,445 — 30,445 
Total long-term investments— 323,305 — 323,305 
       Total$334,743 $804,799 $— $1,139,542 
July 31, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$— $38,156 $— $38,156 
Money market funds360,881 — — 360,881 
Total cash equivalents360,881 38,156 — 399,037 
Short-term investments:
Asset-backed securities— 18,826 — 18,826 
Certificates of deposit— 46,900 — 46,900 
Commercial paper— 100,442 — 100,442 
Corporate bonds— 177,081 — 177,081 
Foreign government bonds— 3,756 — 3,756 
U.S. Government agency securities— 32,605 — 32,605 
U.S. Government bonds— 75,966 — 75,966 
Total short-term investments— 455,576 — 455,576 
Long-term investments:
Asset-backed securities— 40,041 — 40,041 
Corporate bonds— 69,193 — 69,193 
Foreign government bonds— 1,840 — 1,840 
U.S. Government agency securities— 894 — 894 
U.S. Government bonds— 13,917 — 13,917 
Total long-term investments— 125,885 — 125,885 
      Total$360,881 $619,617 $— $980,498 
Convertible Senior Notes
In March 2018, the Company issued $400.0 million aggregate principal amount of 1.25% Convertible Senior Notes due 2025 (the “2025 Convertible Senior Notes”) and, in October 2024, the Company issued $690.0 million aggregate principal amount of 1.25% Convertible Senior Notes due 2029 (the “2029 Convertible Senior Notes,” together with the 2025 Convertible Senior Notes, the “Convertible Senior Notes”).
The fair value of the 2029 Convertible Senior Notes was $760.0 million at April 30, 2025. The Company estimates the fair value of the 2029 Convertible Senior Notes using commonly accepted valuation methodologies and market-based risk measurements that are directly observable, such as unadjusted quoted prices in markets that are not active (Level 2).
In March 2025, the Company fully settled the outstanding $179.1 million principal balance of the 2025 Convertible Senior Notes, which matured on March 15, 2025. In October 2024 and December 2024, the Company retired $120.9 million and $100.0 million aggregate principal amount of the 2025 Convertible Senior Notes, respectively, in cash for $200.5 million and $153.5 million, respectively, which included related accrued interest of $0.1 million and $0.3 million, respectively. See Note 6 “Debt.”
Strategic Investments
The Company’s other assets include strategic 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), which are recorded using the measurement alternative at cost less impairment and adjusts cost for subsequent observable changes in fair value, and an investment in a limited partnership, which is recorded using the net asset value practical expedient (Level 3) in accordance with ASC 820. Changes in fair value are recorded in other income (expense) on the condensed consolidated statements of operations.
During the second quarter of fiscal year 2025, one of the Company’s investees was acquired by a publicly traded company. As a result, the Company received $5.7 million in consideration for its equity interest in the investee, composed of $3.4 million cash and $2.4 million of the acquirer’s shares, which were subsequently sold prior to April 30, 2025 for $2.3 million, and recognized a $3.7 million gain in excess of cost in other income (expense), net on the condensed consolidated statements of operations.
During the second quarter of fiscal year 2024, one of the Company’s investees was acquired by a privately held limited partnership. As a result, the Company received $12.1 million in consideration for its equity interest in the investee, composed of $6.5 million cash and $5.6 million of an ownership interest in the privately held limited partnership, and recognized a $1.8 million gain in excess of cost in other income (expense), net on the condensed consolidated statements of operations.
The following table summarizes the unrealized and realized gains (losses) on strategic investments (in thousands):
Three Months EndedNine Months Ended
April 30,April 30,
2025202420252024
Unrealized gains (losses), net, recognized on privately held equity securities measured using net asset value
$(103)$— $(341)$— 
Unrealized gains (losses), net
(103)— (341)— 
Realized gains (losses), net on sales of strategic investments
— — 3,671 1,758 
Gains (losses) on strategic investments, net$(103)$— $3,330 $1,758 
The following table summarizes the carrying amount of the Company’s strategic investments (in thousands):
April 30, 2025July 31, 2024
Equity investments using the measurement alternative
$18,513 $18,740 
Equity investment using net asset value
$3,320 $3,661