Cash Equivalents and Short-Term Investments

6 Months Ended

Jan. 31, 2023

Cash and Cash Equivalents [Abstract]

Cash Equivalents and Short-Term Investments

Cash equivalents and short-term investments consisted of the following as of January 31, 2023:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

Cash equivalents:	(in thousands)
Money market funds	$	436,581	$	—	$	—	$	436,581
U.S. treasury securities	26,933		—		(2)		26,931
U.S. government agency securities	369,324		—		(79)		369,245
Corporate debt securities	117,303		—		—		117,303
Total cash equivalents	$	950,141	$	—	$	(81)	$	950,060

Short-term investments:
U.S. treasury securities	$	31,533	$	40	$	—	$	31,573
U.S. government agency securities	276,278		—		(6,471)		269,807
Corporate debt securities	350,578		337		(3,963)		346,952
Total short-term investments	$	658,389	$	377	$	(10,434)	$	648,332

Total cash equivalents and short-term investments	$	1,608,530	$	377	$	(10,515)	$	1,598,392

Cash equivalents and short-term investments consisted of the following as of July 31, 2022:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

Cash equivalents:	(in thousands)
Money market funds	$	247,613	$	—	$	—	$	247,613
U.S. treasury securities	202,778		—		(70)		202,708
U.S. government agency securities	135,525		2		(38)		135,489
Corporate debt securities	106,272		—		—		106,272
Total cash equivalents	$	692,188	$	2	$	(108)	$	692,082

Short-term investments:
U.S. treasury securities	$	96,089	$	10	$	(251)	$	95,848
U.S. government agency securities	339,957		6		(6,628)		333,335
Corporate debt securities	293,968		—		(5,022)		288,946
Total short-term investments	$	730,014	$	16	$	(11,901)	$	718,129

Total cash equivalents and short-term investments	$	1,422,202	$	18	$	(12,009)	$	1,410,211

The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of January 31, 2023:


	Amortized Cost		Fair Value

	(in thousands)
Due within one year	$	427,636	$	423,153
Due between one to three years	230,753		225,179
Total	$	658,389	$	648,332

Short-term investments that were in an unrealized loss position as of January 31, 2023 consisted of the following:


	Less than 12 Months				Greater than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

	(in thousands)
U.S. treasury securities	$	24,983	$	—	$	—	$	—	$	24,983	$	—
U.S. government agency securities	75,709		(23)		183,088		(6,448)		258,797		(6,471)
Corporate debt securities	49,577		(181)		141,110		(3,782)		190,687		(3,963)
Total	$	150,269	$	(204)	$	324,198	$	(10,230)	$	474,467	$	(10,434)

Short-term investments that were in an unrealized loss position as of July 31, 2022 consisted of the following:


	Less than 12 Months				Greater than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

	(in thousands)
U.S. treasury securities	$	80,833	$	(251)	$	—	$	—	$	80,833	$	(251)
U.S. government agency securities	230,670		(5,150)		50,134		(1,478)		280,804		(6,628)
Corporate debt securities	155,968		(3,947)		71,127		(1,075)		227,095		(5,022)
Total	$	467,471	$	(9,348)	$	121,261	$	(2,553)	$	588,732	$	(11,901)

We review the individual securities that have unrealized losses in our short-term investment portfolio on a regular basis. We evaluate, among others, whether we have the intention to sell any of these investments and whether it is not more likely than not that we will be required to sell any of them before recovery of the amortized cost basis. Neither of these criteria were met in any period presented. We additionally evaluate whether the decline in fair value of the corporate debt securities below their amortized cost basis is related to credit losses or other factors. Based on this evaluation, we determined that unrealized losses of the above securities were primarily attributable to changes in interest rates and non-credit related factors. Accordingly, we determined that an allowance for credit losses was unnecessary for our short-term investments as of January 31, 2023 and July 31, 2022.

As of January 31, 2023 and July 31, 2022, we recorded $1.7 million and $1.3 million, respectively, of accrued interest receivable within prepaid expenses and other current assets in the condensed consolidated balance sheets.

Strategic Investments Our strategic investments consist primarily of non-marketable equity securities of privately held companies which do not have a readily determinable fair value. As of January 31, 2023 and July 31, 2022, the carrying amount of our strategic investments was $6.3 million and $5.1 million, respectively, and is included within other noncurrent assets in the condensed consolidated balance sheets. There were no material events or circumstances impacting their carrying amount during the periods presented.