Welcome to Salesforce Fiscal 2021 First Quarter Results Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. I would now like to hand the conference over to your speaker today, Mr. Evan Goldstein, Senior Vice President of Investor Relations.
Sir, you may begin.
Thanks, Josh. Good afternoon, everyone, and thanks for joining us for our fiscal 'twenty one Q1 results conference call. I'm Evan Goldstein, Senior Vice President of Investor Relations. Our results press release, SEC filings and a replay of today's call can be found on our IR website atwww.salesforce.com/investor. With me on the call today is Mark Benioff, Chair and CEO Mark Hawkins, President and CFO Brett Taylor, President and COO Gavin Patterson, President and CEO of International Test Group and Amy Weaver, President and Chief Legal Officer will primarily be in non GAAP terms.
Reconciliations between our GAAP and non GAAP measures are in our earnings press release. Some of our comments today may contain forward looking statements that are subject to risks, uncertainties and assumptions. In particular, our expectations around the impact of the COVID-nineteen pandemic on our business, results of operations and financial condition and that of our customers and partners are uncertain and subject to change. Should any of these materialize or should our assumptions prove to be incorrect, actual company results could differ materially from those forward looking statements. A description of these risks, uncertainties and assumptions and other factors that could affect our financial results is included in our SEC filings, including our most recent report on Form 10 ks.
With that, let me hand the call over to Mark.
Okay. Thank you so much, Evan, and thank you everybody for being on the call today. I hope you and your families and colleagues are all healthy and safe. We're in a very specific moment in time anything any of us, well, that we've ever experienced. And for instance, usually I'm speaking to you from the top of Salesforce Tower, but today I'm speaking to you from my home, as I suspect many of you are in your homes as well.
It's another reminder of how the pandemic has dramatically affected all of us, our customers and our humanity in ways that we could have never imagined. And my heart is with everyone who has been affected by this virus, especially those who have lost loved ones. This pandemic is revealing the culture and the core value of every company. And those of you who have followed us closely know that Salesforce has always been deeply committed to serving all of our stakeholders. While we have really lived this for 2 decades and especially over the last 90 days, the foundation of our company is our 4 core values trust, customer success, innovation and equality.
And 1st and foremost among these is the trust that we have with all of our stakeholders. The story of our Q1 is very much the story of trust. Salesforce and Ohana rapidly taking action to embrace and invest in all of our stakeholders. Indeed, our financial results for the Q1 reflect the unprecedented long term investment that we've made in our employees, in our customers and also our communities. And as our fiscal year began, we were coming off an amazing Q4.
It capped off another record year for Salesforce and February of fiscal year 2021 build this continued an amazing growth trajectory. By mid March, of course, and all of you know, the virus emerged, logical and economic crisis. We rapidly pivoted as a company to address 3 priorities in support of our stakeholders: keeping our employees healthy and safe, guiding our customers to navigate this incredibly challenging situation, and supporting our communities around the world. We view this pandemic in 3 phases. The first 90 day phase has been about rapid response and investing in all of our stakeholders.
We're now entering the 2nd phase, reopening safely. And the 3rd phase which we believe will enter next year will be about a new normal. And I want to spend a few minutes on the actions we took during the Q1 and Phase 1. First, we've invested in our employees, their health, their well-being. Well, this remains our highest priority.
We closed 160 offices around the world at a moment's notice, guided all of our 52,000 employees to work from their home. We settled as a cloud first company platform, well, this transition was extremely smooth. We rapidly learned that we can run Salesforce very effectively. And the overall situation was taking its toll on many of our employees' mental health as they sequestered into their own homes, as it has been for many people all over the world. And so we invested in mental health and mindfulness programs to help them.
Our core program, Be Well Together, which was initially just designed for our employees, well, we've had to open that up publicly to all of our customers, well, the whole world, because of public demand. We also invested in our employees' financial stability. We committed to no significant layoffs for the 1st 90 days of the crisis. And in late March, we also gave certainty to our sales team with a one time guaranteed commission for the Q1, which we knew would close at the height of the crisis, giving them tremendous confidence in our ability to take care of them. This was a critical investment in the long term success of our amazing distribution organization.
And we invested in our communities. In early March, we were asked by Sam Hoggett, the Chancellor of UCSF to help him acquire PPE. UCSF was already running low on PPE. Chancellor Haged was looking for ways to protect his doctors and nurses and other frontline workers. But back then, I have to tell you, I didn't even know what PPE was.
It turned into a much larger and more critical effort almost overnight. And as we receive many requests from hospitals, nursing homes, essential businesses, the CEOs of some of our largest customers calling us in dire need. Well, in partnership with UCSF, we helped acquire and distribute more than 50,000,000 And just one example, Salesforce sent a 767 loaded with PPE to New York City at the very height of the crisis. Masks and gloves and aprons that we acquired, while they were immediately delivered to the state distribution hub at Javits Center. And I'm deeply grateful for our relationship with Daniel Zhang, the CEO of Alibaba who helped get this started and make sure that we got the PPE that we so badly needed in the year.
At the same time, we've donated funding, employee volunteer time, services to those most in need, focusing on access to care, lost livelihoods, food insecurity and the digital divide. This pandemic has exposed deep structural inequalities across our society that we can't ignore. We can see that on TV right now. But at Salesforce, our core values include our commitment to the equality of every human being and this will be part of our work going forward as it has been for all of us. Look, we also invested in our customers actually quite dramatically.
Even with our employees working from home, our culture of innovation continues to thrive, deploying new products to help customers at this critical moment in time. I was especially inspired by the productivity of our incredible engineering organization. And talking with CEOs all over the world, it became apparent very quickly that many were looking to Salesforce to help them guide through these unchartered waters. Companies were working from home, leaders had little visibility in their businesses, no way to easily connect with their remote employees, customers or partners and they turned to Salesforce. For some of our customers most severely affected by the unprecedented impact of COVID-nineteen, but we even granted them a temporary financial flexibility.
We also created free rapid response Salesforce care products to help companies work to sell the service to market from their homes. And we've already had more than 38,000 sign ups for Salesforce Care led by versions of Salesforce Essentials and Salesforce Quip. That's been amazing. Our Salesforce Care Industry Solutions for healthcare and manufacturing, well, they've provided and proved to be crucial for many companies. They're scaling up services.
They handle increased demand for patient management, pivoting to much needed PPE, ventilators in their factories. Tableau, well, they were amazing. They built this incredible free analytics platform, the Tableau Data Hub, tracking the virus and being used by dozens of U. S. States and countries around the world.
You can see it at public.tableau.com. And with Tableau Data Hub, New York State posted a set of Tableau dashboards that provide a daily look at the latest testing and confirmed case data at both the state and county level. And that data is also used by Governor Cuomo during his daily briefings. We're able to do all this because of our Salesforce platform provides the agility, the flexibility, the speed, create solutions not in months or years, but in weeks, even days. And when everyone sheltered in place, we saw tremendous growth also in our eCommerce clouds weekly order volume and our Einstein Fox sessions both were up more than 100% since February 1.
Einstein predictions increased 5 times over this time since last year. We also had an amazing job happening pivoting from physical events to virtual events. We developed an online leadership program called Leading Through Change. It had over 75,000,000 views so far, incredible. Program highlights the work our customers have been doing during this crisis.
It gives them inspiration and guidance and also shows them Salesforce solutions that are available to help them get their jobs done. It included phenomenal speakers like the CEO of Starbucks, Kevin Johnson and also the CEO of Accenture, Julie Sweet and many more. And as the virus continued to spread throughout March, we also got a call from Governor Gina Raimondo of Rhode Island. Gina is amazing. She needed a way to manage her critical contact tracing, which would enable her state's health department to track the virus as it spread and isolate anyone exposed.
So this became an opt in manual process, which a citizen can report they've been tested for COVID-nineteen and identify anyone else they've been in contact with. Even those contacts can be notified of their potential exposure to the virus and isolate themselves. And Governor Armando inspired us to build an app that manages this process and scale efficiently and reliably. We're on the phone with her many times. And so we did it in just a few weeks on the Salesforce platform.
And in addition to Rhode Island today, we're now helping more than 30 states release the spread of COVID-nineteen, including Maryland and Massachusetts, Kentucky, Louisiana, California and great cities in our country like New York City and other countries too. So this is an incredibly important effort. We're developing the contact tracing app for Rhode Island. We saw we need to deliver several products now to mitigate the spread of the virus and we needed to do it rapidly, not only for our public sector clients, but for commercial clients as well. Customers are asking for automation to facilitate the return to work safely, including the contact tracing, shift scheduling, workforce assessment, a command center for the crisis and this was the genesis of our work.com platform, which has rapidly become a significant part of our public sector pipeline and actually a meaningful part of our overall pipeline.
We've been hugely surprised. And while all of this was happening, we also delivered $4,870,000,000 in revenue, up 30% year over year. We delivered $1,860,000,000 in operating cash flow. Now that was down slightly year over year to many of the actions that I just reviewed in response to the pandemic. And as I mentioned earlier, we also provided some customers temporary financial flexibility.
We also incurred some incremental business expenses such as the one time commission guarantee for our sales team that I mentioned. We expect these expenses to be largely, I would say, wholly encapsulated in the Q1. We have great confidence that our investments, we already see it in our employees, our customers, our communities in the Q1, well, they're benefiting us. They're benefiting us now in the short term, the long term with tremendous strength and tremendous growth. And for the fiscal year 2021, we're updating our guide of approximately $20,000,000,000 representing 17% projected growth year over year.
And we believe this guide is very appropriate given the current biological and economic environment worldwide. Our ability to execute globally with speed through the adverse conditions of March April, well, I'll tell you that gave us tremendous confidence. We can operate successfully in any environment at any time. It was incredible. We demonstrated that we have the ability to innovate and meet rapidly changing customer demands and needs under any circumstance.
And the last few months affirm the strengths we have in our amazing customer relationships and our ability to innovate at scale and operate across different industries and geographies, companies of all sizes. And with Customer 360, well, it was clear to us, we have the most complete CRM product portfolio to enable digital transformation of any company. I was excited to see in the quarter and for the 7th year in a row, IDC has ranked Salesforce as the number one CRM. We gained more share in 2019 and we're now seeing continuous improvement in our businesses, in our bookings and our pipeline month to date. We've been really surprised by our pipeline growth.
It's been incredible. And our pipelines for the Q2 and the fiscal year are really strong. I've been on more sales calls with more CEOs in the last 2 months than at any time in my career. And there's universal agreement among them. Digital transformation, well, this isn't a want to have, it's a must have.
Companies and organizations and governments around the world have a digital transformation imperative like never before. And many are accelerating their plans for digital first, work from anywhere environment. For example, in Q1, we signed incredible and extensive deal with AT and T. With the vision of AT and T Communications CEO, Jeff McElfresh, incredible executive, somebody who's just been completely inspiring to me. Well, AT and T is moving to a highly accelerated digital first world to deliver the most amazing 5 gs service with an incredible connected experience for their millions of customers and subscribers across every customer touchpoint.
And this includes their media properties such as DIRECTV and HBO and Turner Sports and more. But with Salesforce, AT and T will further extend this vision of a single view of their customer, single source accrual really. With every customer touch point federated on Customer 360, across retail sales and call centers, on messaging and online and in home service and more, only Salesforce could do that. Every customer touch point, the AT and T truck pulls up to my office or my home, that's going to be Salesforce. And I walk into the AT and T store and that's going to be Salesforce.
And I'm getting an email from AT and T, that's going to be Salesforce. And I'm on the phone with the AT and T call center, that's going to be Salesforce. And we're going to make sure that they have that Customer 360 enhanced. And I'll tell you when we're integrating all that data with MuleSoft, it's going to connect AT and T's different back end systems. Tableau is giving them the ability to understand customer preferences.
Einstein is going to help them serve more intelligent recommendations and route service cases. I was on the phone just yesterday with Jeff McElbrish reviewing the incredible progress of the project. And it was clear to me, this is going to empower AT and T to drive more value and build stronger relationships with every customer. And we're going to begin deploying this with Jeff and his team to AT and T's employees very, very shortly. Our goal is by the end of July and then to tens of thousands of users in the Q3.
We're thrilled to have also significantly expanded our 15 year partnership with Standard Bank Group, the largest bank in Africa. It operates across 20 markets. It's an incredibly important bank to the African economy. Standard Bank is going to leverage the full power of our Customer 360 including the Financial Services Cloud, the Commerce Cloud, Marketing Cloud, MuleSoft and Einstein provide that single view of the customer, to build personalized customer journeys and deliver amazing client experiences in retail banking across all channels. And when the livelihoods of Zions Bank customers were threatened by COVID-nineteen, well, the Utah based bank turned to sales force and customer 360 We virtually support a high volume of loan requests.
They're using our customer communities and our service cloud to facilitate conversation with customers, automate applications processes, provide tracking and visibility to customers waiting for their loans. Zions Bank stood up its loan application portal in 7 days. Even though it's the 38th largest bank in the U. S, it became the 9th largest distributor of SBA Payroll Protection Program funds in round 1 using Salesforce's Customer 360 platform. One of our ISV partners, Encino, well, they built an end to end solution for federal SBA Care Act loans for small businesses all on Salesforce and it processed more than $35,000,000,000 in loan applications for its banking customers including KeyBanc, Iberia Bank, the world's largest credit union, the Navy Federal Credit Union, all running on sales for Customer 360.
And one of the unique aspects of COVID-nineteen crisis has been deepening our ties with the local and federal governments around the world. But public sector action has never been greater. I mean, I can't believe how many phone calls I've been on with governors. In the public sector, a number of our government customers, agencies, if you will, they chose Salesforce in the quarter to begin helping them address COVID-nineteen related issues, including some of the very largest federal agencies. At the state level, we formed a new relationship with the State of California's Office of Emergency Services.
They implemented Salesforce to create the public team that helps the state leverage data to urgently needed public health resources across California improved customer service. We did it in days. And the U. S. Census Bureau, while they expanded their long time relationship with Tableau, as the agency's data analysis and visualization platform of choice, Tableau partners with the Census Bureau on mission critical data applications in support of the 2020 Census and beyond, so important.
Internationally, we also had an incredible deal with Commonwealth of Australia, where we partnered with the National Disability Insurance Authority to deliver an improved experience. For more than 500,000 participants that are predicated to access disability support by 2025. Those are some of the highlights from Q1. Now looking ahead, as much of the world is beginning to move now into Phase 2, we like to call reopening safely. Our work.com platform is going to become a well, it's going to fill a huge unmet need.
Step by step, we're seeing the economy is starting to come back to life. Salesforce is also beginning to reopen its offices, 1st throughout Asia. It has to be done safely, got to be done responsibly and it's going to be a complex process. In the new lifestyle, a new lifestyle of PPE, a new lifestyle of enforcing social distancing and contact tracing, and a new lifestyle of wellness assessment. You can see some of the photos on my Twitter feed of our employees entering some of our offices.
It looks very different than it did just 90 days ago. We're going to need a command center to monitor return to work because businesses are not going to bring everyone back at once. They're not all coming back at once because you're going to need social distancing. And you're going to need tools for emergency response management. And you're going to need expert perspectives from renowned experts because this is changing on a regular basis.
And from our incredible ecosystem and tools and workforce reskilling, we bundled all that in to this work.comsuite. You can see it at work.com. You can see what we've built, how we're starting to roll it out, who our partners are. It's a platform for enabling our customers to reopen safely. And it's because it's built on our Customer 360 platform, we're able to spin up this entirely new generation of apps in a matter of weeks.
Amazing. And I just have to give credit where credit is due. To Governor Gina Raimondo, Rhode Island. It was her call to us early on in the crisis that inspired us to build work.com. She was a visionary that said, we need information technology to mitigate what's happening with the virus until we have a vaccine.
Well, I'll tell you, at times, even though we have nearly 52,000 people in Salesforce, creating work.com felt like many of our early startup days with the speed and scrappiness, the laser focused execution of our management team, it was this was the best I've ever seen Salesforce. And we're already returning to work. We're starting to see the return on this investment now. It's amazing. In a very short time, Work.com has generated an enormous interest from businesses and governments at every level, from our partnerships.
And with work.com, we've deepened those partnerships with the world's largest systems integrators including Accenture and Deloitte and PwC and IBM and many of our partners are now building solutions on work.com as well. It's incredible to see what they've done with risk management and compliance and business continuity. And just yesterday, Workday announced that it's going to integrate its employee data directly into work.com to make it easier for employers to centralize critical data and get their businesses up and running again. We've enabled and trained all of our salespeople worldwide to be able to talk to our customers on how to reopen safely with work.com. I've been thrilled.
And I'm so thrilled also, especially in my Workday partnership with EMEA Allwell. That's just an amazing company and to make work.com even more valuable to so many of our joint customers. So thank you, Aneel, for that. In the months ahead, I expect work.com's ecosystem to rapidly become even more robust with even more relevant solutions. I've had so many of our customers contact us on how they can integrate their own products into work.com.
That's so cool. And as we move deeper into Phase 2, work.com is going to become extremely important to all of our customers. We've learned from this crisis just as we have every time we have been faced with major challenges. Well, we saw once again how our values create value. We've seen how our agility and our beginner's mind has enabled us to quickly pivot and take action.
And we made investments during Q1 to confront this once in a generation calamity, focusing on our employees, delivering relevant innovation for customers and supporting our communities with PPE and grants and technology. We could do all this because of proven strength and sustainability of our extraordinary business model and our extraordinary technology and our extraordinary ohana. We know that when we invest in all of our stakeholders, we're building the trust, the relationships, the innovation and our business for the long term. The pandemic has shown that digital is the lifeblood for every organization, whether you're a public sector, state, country or whether you're a commercial organization or a non profit or an NGO. The new normal Phase 3 is going to require organizations of all sizes, shapes, geographies.
Well, everyone's going to have to adopt new ways of conducting themselves and especially their customer relationships, especially their sales and service, especially their marketing and commerce, and especially new ways of collaborating and reskilling workers, every company is going to have to digitally transform. Fortune's recent survey of Fortune 500 Companies Found 3 quarters CEOs, well, they believe this crisis is going to force their companies to accelerate their technological transformation. Well, I mentioned Jeff McElfrash of AT and T. Well, he is the first one who said that to me. He was the first one who got on the phone with me and said, we're going to accelerate our digital transformation at AT and T.
And I believe that Salesforce has never been more relevant or more mission critical to more organizations. No one is better positioned than Salesforce to accelerate out of this crisis and bring customers into the new normal. Now before I turn it over to Mark, I want to make sure you've heard that Gavin Patterson, the former CEO of BT Group and our current President and CEO of International will be our new President and Chief Revenue Officer beginning August 1. And you've already heard of 1 of Gavin's amazing deals and I hope he'll talk about that later on the call. But I'm so thrilled to have Gavin as a member of the team.
He's just an amazing executive. We've been friends for many years and he's already had a huge impact on our company and on our management team. And I could not be happier for Gavin, but I couldn't be happier for Sales Force and all of our Ohana that we're able to have his experience and his capability as part of that. I'll turn it over to you, Mark.
Okay. Well, thank you, Mark. And before I begin, you guys, I want to express my thoughts and my best wishes for everyone's safety and well-being during this historic time. I'd like to focus my remarks on providing additional details on the company's response to the COVID-nineteen pandemic
and our updated fiscal 2021
guidance. Pandemic and our updated fiscal 2021 guidance. We're focused on investing in our employees, our customers, our community in response to COVID-nineteen and preparing for a post pandemic future. We continue to believe that values drive value and these Q1 investments and all of our stakeholders will result in long term equity. We want to provide visibility into how our actions in response to COVID-nineteen affected our financials in Q1.
I'll begin with a top line commentary. Revenue for Q1 was 4.865 last year. We saw good revenue performance by cloud. Our sales cloud grew 16% from significant M and A. Service Cloud grew 23% with 2 points from significant M and A.
Platform and Other grew 62% with 35 points from significant M and A and Marketing and Commerce grew 27% with 4 points from significant M and A. Additionally, we had strong year over year revenue performance by region in constant currency. Americas grew 29% with 11 points from significant M and A. EMEA grew 41% with 12 points from significant M and A and Asia Pac grew 28%. Additionally, we were pleased to have maintained a revenue attrition rate of less than 9% at the end of the quarter.
In fact, this is actually down year over year and in line sequentially. This speaks to the diversity and geography within our customer base as well as how mission critical our products are to our customers. As always, we continue to monitor this metric closely to determine how the COVID pandemic may impact our customer base going forward. Our performance our remaining performance obligation representing all future revenues under contract ended the Q1 at approximately 29,300,000,000 dollars up 18% over last year. And as a reminder, this metric includes both new business and renewal contracts.
In Q1, these contracts were approximately 3 months shorter in duration on average compared to Q1 of last year. And we believe this is a result of the COVID pandemic and we expect this to normalize in the future. Please note that the contract we signed with AT and T entirely resides in non current portion of RPO as our updated revenue guidance assumes no contribution from AT and T in FY 2021. Our current remaining performance obligation or CRPO, which is all the future revenue that is under contract and is expected to be recognized as revenue in the next 12 months was approximately $14,500,000,000 up 23% year over year. Turning to EPS and operating margin.
Q1 GAAP EPS was 0 point 1 $1 and non GAAP EPS was $0.70 And there are a few items I'd like to discuss as they pertain to the Q1 objective of investing in our employees, our customers and our community in response to COVID-nineteen and preparing for the future, which we believe will lead to an even stronger business and company. First, the one time partial commission guarantee, I discussed earlier, was approximately $140,000,000 As a partial commission guarantee makes it not eligible for capitalization, this expense will reside in Q1 and not in the future periods. Given how sudden and severe the pandemic arrival was in March, we chose to take powerful action to care for our employees through this crisis. 2nd, due to the cancellation of our physical events this fiscal year in favor of virtual experiences, all event contracts that included cancellation fees for fiscal 2021 commitments were expensed in the quarter. This amounts to approximately $65,000,000 We are working with these vendors to renegotiate these contracts as we pivot to digital virtual experiences, which means we could see some partial reversal later in the year.
Thirdly, we incurred approximately $25,000,000 in one time lease impairments due to vacating and subleasing offices that will likely return below market rent due to the COVID pandemic. And finally, we prioritized caring for our community by donating approximately $20,000,000 which came in the form of PP and E and cash grants. These unique and mostly one time variable items were partially offset by approximately $75,000,000 in savings largely from T and E due to shelter in place orders. The net of these items created approximately 3 50 basis points of headwind to operating margin compared to our expectations in the quarter. Regarding our strategic investments, we recorded approximately $192,000,000 in realized and unrealized gains.
This was driven by significant realized gains on the sale of public securities, partially offset by unrealized losses within the investment portfolio. Turning to cash flow. Operating cash flow was $1,860,000,000 which was largely impacted by delayed payments from customers while sheltering in place and some temporary financial flexibility that we granted to certain customers that were most affected by the COVID pandemic. We expect to collect majority of the balance this year and do not expect this to have an impact on our full year cash flow. In addition, we previously described this partial commission guarantee also created a headwind to our operating cash flow.
Should we not have incurred these items above, our Q1 growth rate would be consistent with historical rates. CapEx for the quarter was $323,000,000 leading to free cash flow defined as operating cash flow less CapEx of $1,540,000,000 down 15% year over year. Turning to guidance for Q2 fiscal 2021. Revenue is now expected to be $4,89,000,000 to $4,901,000,000 in Q2 and approximately 20,000,000,000 dollars for the fiscal year, the latter which continues to include $50,000,000 contribution from Velocity, which is expected to close on June 1. There are 2 important assumptions reflected within the guidance that stem from our assumptions that the IT spending growth normalizes next year, which we believe to be appropriately conservative and consistent with our learnings as we successfully navigated through the great financial crisis.
First, our guidance assumes our revenue attrition rises from less than 9% now to less than 10% temporarily for the rest of the fiscal year. 2nd, the guidance reflects the adjustment to incremental new business expectations that we made due to the COVID pandemic. Another important consideration when thinking about our FY 2021 guide is the magnitude of the above when applied for term license products. As a reminder, the term license revenue product typically records approximately 50% of the contract's TCV immediately to revenue with the remaining balance recorded ratably over the contract term. This accounting treatment can create uneven revenue trends between fiscal periods as you saw during half 2 of FY 2020, this helped drive the revenue outperformance in those quarters.
Additionally, we are pleased to have experienced improving trends within our pipeline and close rates between March through today, which leaves us incrementally optimistic about the future. In fact, April was better than we anticipated would be when we started that month. We continue to see additional positive trends in May. For Q2, GAAP diluted EPS is expected to be minus 0.02 dollars to minus 0.01 dollars while non GAAP diluted EPS will be 0.66 dollars to $0.67 For fiscal 2021, we're expecting GAAP diluted EPS to be minus 0.06 dollars while non GAAP diluted EPS will be $2.93 to $2.95 In light of the COVID pandemic and our actions in Q1 to support our customers, employees and communities, we expect our fiscal 2021 non GAAP operating margin to be roughly flat year over year on a percentage basis. As we prepare for the future, our outlook for the rest of fiscal 2021 includes incremental discipline and prudence especially in regards to headcount, largely due to lower employee attrition rate than planned.
As always, we continue to monitor our go to market capacity to ensure we allocate the appropriate investments to achieve our targets both this year and in the future. For the remainder of the year, we are focused on making ourselves even stronger upon exiting the pandemic. As a reminder, our EPS guidance assumes no future contribution from mark to market accounting as required by ASU 20 1601. For operating cash flow, we're reducing our fiscal 2021 operating cash flow to 10% to 11% year over year growth to align with our updated revenue and margin guide. We do not expect to provide incremental temporary financial flexibility.
We now expect CapEx to be approximately 3% of revenue in fiscal 2021, resulting in free cash flow growth rate of approximately 13% to 14% for the fiscal year. We expect CRPO to be approximately 16% to 17% growth year over year in the Q2, which we believe is appropriately conservative and consistent with our revenue guide. In light of the uncertainty surrounding the COVID pandemic, we are reassessing our long term revenue target for fiscal 2024 and we're planning on giving an update during the Investor Day. To close, while the COVID pandemic was sudden and a once in a generation crisis, we are proud of the investments and relationships we have deepened with our customers, our community and our employees. We are confident our actions in these investments will lead to an even stronger business and company in the future.
And as we move into Phase 2, we are strategically well poised with a strong balance sheet and a durable business model. We are well positioned to continue to leverage this secular tailwind to drive digital transformation. I'd like to thank our employees, our customers, our partners, our communities and our shareholder all our shareholders for the continued support and I wish to each of you and your families and your firm's safety and wellness. And with that, we'll open up the call for questions.
Your first question comes from Mark Murphy with JPMorgan. Please go ahead.
Yes. Thank you. Mark, the 2nd week of November should be an interesting one. I am wondering what Einstein might be telling you about virtual Dreamforce 2020. Some of us on the call have attended every single one in person at Moscone Center.
And so just with it going virtual, curious how you're going to maximize the impact of Dreamforce, so it provides the inspiration that it's known for and also that so that it drives the pipeline for Q4 and beyond?
Well, that's such a good question. And I'll tell you that, of course, Dreamforce has been such an incredible part of our culture that we're all going to miss Dreamforce this year. But you may see that we've already started some amazing things online and we're getting some phenomenal results. In fact, we have as I mentioned, we've already had more than 75,000,000 views and I think we're almost soon 100,000,000 views of our Leading Through Change program. And I don't know if you've had the opportunity to watch or participate in Leading Through Change, but it's been incredible.
And that type of virtual program, I believe, is very much going to be something that is going to be a permanent solution. We've really been able to inspire our customers and our employees, all of our Ohana, including our account executives and enable them with these programs. And while we're certainly going to miss being together at Dreamforce this year and that's not something that well any of us could have imagined just 90 days ago. I think that we now see a very clear path to be able have virtual events, build pipeline, build community, build brand, create and deliver new products. And I have a lot of confidence in our ability to execute without a physical Dreamforce this year.
And not just Dreamforce, by the way, as Mark mentioned, we canceled all of our physical events for this year and we had to pay an extremely large amount of cancellation fees that all got cost into that Q1 number. And so all those world tours and all these other amazing events, we do a 1,000 events a year, but we're just moving as many of them to the virtual programs as well. And not just the big events, there's lots of small things happening. So we're executing. It's a great question.
Thank you.
Comes from Terry Tillman with SunTrust. Please go ahead.
I guess my question relates to it's great seeing the AT and T win. It seems like a great example of the digital transformation opportunities. But with Customer 360 in these larger transformational deals, Mark, maybe you could give us an update. You talked about strengthening pipeline. How does some of these larger transformational deals, how do you see that playing out the rest of the year?
Or is that some of that business harder to come by just because it is more complex? Thank you.
Well, I'll give you the beginning of the answer. And then I've been very fortunate this quarter to have Brian Millam running our global distribution organization. He's also running it in the Q2 while we're bringing Gavin on board. And Brian's been with us for more than 20 years. Many of you know Brian.
He's really been the heart and soul of our distribution culture. He's done a phenomenal job this quarter. And I think that what we see reminds us a lot of over a lot of different times in the last 20 years in sales force where you have to have a full portfolio of products and deals, small, medium and large that there's an ebb and flow. You're never going to make your number on all large deals, or all small deals. You have to have a portfolio of transactions and you have to have that across geographies, product segments, verticals.
And that's one thing I've been super proud of the distribution organization, their ability to deliver that and then to see that start to manifest in these really strong pipelines. So Brian, do you want to comment on that?
Yes, Mark, I think we made the comment of our pipeline over the last couple of weeks here has been very encouraging for us. And that's the pipeline comes in all forms as you said. It comes from different segments of our market, different regions of our markets, our products. And so, we're very encouraged by the future, both the large deals and the small deals that we're getting done across our credible distribution organization. So very, very encouraged as we go forward.
Your next question comes from Sarah Hindlian with Macquarie. Please go ahead. Your line is open.
Yes. Hi. Thank you so much for taking my question. And I hope I guess my first question is for you, Mark. I guess, you're thinking about this nice pickup in the pipeline.
That. Is it across certain verticals, markets, products, enterprise, commercial? And then I have a follow-up for Mark Hawkins.
Well, thanks. I'm going to have Brett Taylor comment on that because he and I were just talking about that today. We've been so inspired by kind of connecting to the first question, how a lot of our programs that we put in place. And I'll tell you the 4 dimensions that we've been really focusing on. Of course, we have a very large scale distribution organization.
I would say it's more than half of our company. You think about that in terms of all the customer facing organization. Number 1, the most important thing is to get everyone, especially when you move to an at home environment is participating. Participation has been mission critical and that's really where we focus. What percentage of those sales and service professionals, managers, executives are out there and really working with customers and this is an unusual environment.
That provided opportunity for lots of new training, new ideas, new programs. And the second thing is to enable them with that, train them and also introduce some of these new technologies, these products. The third thing that was absolutely critical after participation and enabling it, making sure that they have a relevant position. I'm sure for many of you as this crisis kind of unfolded, we didn't have a lot of time for you. Incredibly relevant to our customers.
1st, in this core digital transformation and then next was really how we could provide tremendous value in reopening safely. That became the 3rd leg of our stool. And the 4th leg became really critical, the tactical plays and critical aspects of building that pipeline up. So Brett, you've been the architect of all of these things. And can you talk to us about how you put that into place?
Yes, Mark. Thank you. I think that one of the things that you said in your opening script that I'm really seeing from our customers is the digital imperative. And across the entire Customer 360, we're really seeing that play out in some of both the pipeline numbers and the adoption numbers, some of which you mentioned on the call. For customer service as an example, our Einstein Bots functionality, which provides digital self-service, which is more relevant than ever before, is up over 100% just in February, really reflects that overnight digital transformation of service.
Here in marketing, Einstein is doing over 12,000,000,000 predictions per day, really represents this mass scale digital personalization because digital is the one channel really remaining for a lot of our customers to engage with their employees. On our Commerce Cloud GMVU is up over 100% year over year as Commerce digitized overnight. Even on industries, as Mark mentioned, the small business administration loans process really came out a lot of banks overnight. We helped one of our largest banking customers go live in just 72 hours. This is all digital.
It's fast. And we're really seeing that relevance point that you mentioned, Mark, being extremely important. I think that every single CEO, every single CIO I talk to has the same method which is whatever digital transformation they have left has just accelerated, thanks to COVID-nineteen. I think the digital aspects of our Customer 360 platform have become more relevant than ever before and you're seeing that in the pipeline.
Your next question comes from Derrick Wood with Cowen. Please go ahead.
Thanks. Question for Mark Hawkins. Implied CRPO bookings growth for Q2 looks to be in the mid single digit range, if I have my math right, following 20% in Q1. And Obviously, a lot of companies are expecting a tougher Q2. But can you just walk us through the assumptions here, whether there's any pressure points coming from contractions or churn or pushed out deals or any dynamic you'd call there?
And then I know you don't guide CRPO beyond a quarter, but given the constructive commentary on the pipeline, any color can you give on how we should think about a potential recovery in CRPO bookings in the second half?
Sure. First of all, thank you, Derek for the question. Happy to do that. When we for CRPO, when we look at that for the Q2, you should think about it is approximately 16% to 17% growth rate at CRPO. So I think that aligns well as we think about the revenue going forward in the current year in this temporary year of pandemic, if you will.
So we think it's appropriate to line number 1. I think in terms of the recovery, the way we have and you talked about attrition and things of that nature, I just want to be clear that we're actually very pleased in the sense that our attrition actually went down year over year in Q1. And so from that standpoint, going through this pandemic and we call that out, it still would be we would expect that to be a temporary nature, but we said for the fiscal year it will be lower. And that's partly based on the learning from the great financial crisis. Here crisis.
Here Q4, we were very pleased to see what happened in Q1, but that's a little bit of color. We had to make a call and kind of really make sure that we're dialing this in, in light of the uncertainty that's out there. So I think that would be something to think about. In terms of the recovery itself from an IT spending standpoint, we think that if you look at the recovery in FY 2022, which begins for us in February, Could it be sooner? We see companies that are doing that.
That's just what we're thinking about, the demand environment. But one thing we learned for sure in the great look at what's going on, see the temporary situation and then we remember how we navigated through it very successfully going on back to our future. And we really see that in this particular case amongst a much bigger opportunity that we all know about including $170,000,000,000 plus TAM, that's one of the fastest growing parts of the market, but everything's being impacted temporarily with the pandemic. So that's what I would say and happy to have if Mark wants to add anything to that. Hope that helps, Doug.
Your next question?
Well, I'd really like to open that up to Gavin Patterson, our new Chief Revenue Officer. He's been driving this incredibly strongly from his office in London, and he's going to be moving to San Francisco shortly. You heard about this incredible win that he personally led at at this amazing organization called the Standard Bank Group. But Gavin, can you just fill in how you see this market unfolding right now?
Well, thank you, Mark. And just to say, I'm very excited to be taking on the role in the next few months. I've known Salesforce, as you know, for many years, and I've known Mark personally for many years as well, as a customer at BT, where I was the CEO. And I started my career at Procter and Gamble in brand management. So I know the company reasonably well as a customer.
And over the last year or so, I've been more and more involved with the company, initially building an advisory board in Europe, and then lastly, picking up executive responsibilities for international. And that's where I helped steering the Standard Bank deal at the end of the quarter, which was a big win for us. And I think very much a platform deal for us in Africa as we open up that market. So there are many things I hope I can bring to this job, for viewpoints, a CEO viewpoint. But the one thing that's very clear to me is the opportunities are there.
Seeing how the organization has been able to adapt in the last couple of months to the shop and rebuild and gives me great confidence that the opportunities are there. And as Mark said, the majority of customers that we're talking to are saying, how can I accelerate digital transformation? And there's no better partner to do that with. So I think there's certainly the growth potential, not just domestically in the U. S, but internationally around the world, I think, exists for us.
Team Yes.
Thanks very much. And Mark, thanks for all the work you and the team have done to help out in this crisis. You guys have done some great things. My question is for Mark V. If we think back to the great financial recession and you think about what eventually turned the tide from customers wanting to talk to you about digital transformation to customers actually spending on digital transformation?
I mean, I think between you, Gavin and Bret, you all mentioned that there's a greater understanding of the imperative to spend on digital transformation today, yet you obviously have some prudent guidance out there for the second half of the year. So when you talk to CEOs, what do you want to start hearing from them that gives you confidence that their interest is going to start translating into bookings? Is it simply just business confidence, better understanding of what's going to happen in the fall around COVID? Just kind of curious so we can keep an eye on some of the broader data points out there and try to triangulate it to your thinking on business momentum. Thanks.
I think it's such a good question because of course when you are addressing a market with a set of products, capabilities, you're going to have a set of strategies as well as a set of tactics. You're going to have plays as well as products, programs and you're going to do that differently by geography, different by industry. I think we already know that unlike the financial crisis, the way that this has discriminated against different industries is quite different than anything we've ever seen before and has been quite shocking. And for some industries, recovery. In other industries, it's actually been accelerated, and it causes them to grow faster than they anticipated.
I mentioned with AT and T, that's obviously a company that will transform itself during this moment to become more digital, to become a stronger, more customer centric organization, they're going to accelerate into it. My personal belief is always that in a moment of crisis, you need to invest through it. Maybe not every company can do that, but a lot of companies surprisingly can. That's why you have to offer a full portfolio of capability. I really saw all that come together in the Q1.
I was really impressed with the bookings that we achieved in the Q1. As it kind of started to get crazy in the middle of March, I was like, wow, what is going to happen at the end of March and then through April? Well, this was the best of Salesforce. This was the best I've ever seen sales work perform. I mean, it was just incredible to see all of our Ohana, the sales organization, service, engineering across the board.
And then in the second quarter, well, as I mentioned, I'm already really inspired by the bookings numbers that I started to see and the pipeline numbers. So we're quite optimistic about what the future is going to look like for us. And Brian, do you want to fill in a couple of details for us?
I appreciate that, Mark, and I appreciate the question. For us, it's about being very relevant to our customers. It's about showing up and listening deeply to what they're going through. And what we're finding is we're more relevant than we've ever been to our customers and that's a great place to be. I couldn't be happier with the broad portfolio of products that we have to go address the problems our customers are facing today.
It's a great product team building incredible products. Work.com is a perfect example of something that we reacted to very, very quickly and are helping our customers address these core issues. And when you sit in that position, I think it's why we see our pipelines accelerating right now. So just very, very pleased with where we sit today.
And your last question comes from Brent Thill with Jefferies. Please go ahead. Your line is open.
Thanks. Mark, just back to you, encouraged by the bookings going into Q2. Can you give any color what you saw from April into May? Many tech companies have seen stabilization and improvement. Are you seeing similar trends through the month of May?
And then maybe for Mark Hawkins, just on the expense side, there are a lot of questions that this environment may kind of permanently shift some of the expenses across tech. Do you think there's some permanent lasting effect that can inherently make you more profitable through this as we exit out? Thanks.
Well, I'd really like to turn it back over to Gavin for a second and Brian and have them address the customer environment that will fill in the details on the pipeline as well. Gavin?
Yes. Sorry, Marcos, wondering whether you want to Brian get us. What we're seeing is confidence is building almost week by week. So clearly, there was a shock that hit the system, particularly in March. But as we go in through April and we move through May, I would say bit by bit, and it's not given that we're at a different stage in the recovery market by market in every market yet.
But the broad sense of direction is built get much better visibility for bookings, not just Q4 as well. I can sense the confidence building in the sales organization. We're not getting carried away with ourselves. But going back to a point that's been made a couple of times on the call, the relevance of our product set and particularly work.com is proving that actually more than ever our products are important to our customers and key to the digital revolution and transformation that our customers are going to go through. So as I say, I'm pretty bullish about what I'm seeing at the moment and we'll continue to see it grow I think from here.
Brian, do you want to fill that in?
Yes. I would be giving tremendous confidence in our sales teams right now, pipeline growth that is growing and those compares are against a quarter when we grew. So we're feeling very confident about the pipeline growth. As Gavin said appropriately, we're not getting overconfident. We need to go out and execute, but we feel very good about where we sit.
And hate to repeat myself, but in a time when you need to be relevant, you didn't have products that fit the customer need, we feel like we're in a very good position right now. So very, very happy with where we are in the early months of the quarter.
Brett? Yes. I think, echoing both Gavin and Brian's comments, I've had 3 customer meetings already to them and every single one had one theme, which is the pandemic towards the next normal and the new normal. The ability to know that we're not 100% sure what that's going to look like, but it's all digital, it's work from anywhere, our customers' employees and their customers. And they are the most relevant platform available to really help their customer help their company transition to that new normal.
So that's really what we're seeing. I think there's still uncertainty out there, but I think people have started this reopening process and you're seeing it in the momentum in the business.
And I'd like to kind of give And
I'd love to have Amy Weaver give us the closing words on her because she's been involved in so many of our customer discussions. And Amy, can you fill in exactly how you how do you see the situation moving forward?
It has been a whirlwind of a few months. But when I look at what we went through and where we're going, what really stands out to during this quarter and every plan that we're making for the future. We're doing it in line with our core values with trust, with customer success, with innovation and with equality. And I think that we found that these values serve the company so well, it leads to a stronger company, stronger relationships with our customers, stronger relationships with our communities and really a great position for all of our stakeholders. So thrilled to be part of it and looking forward to the next step.
Parker, love for you to wrap it up. You've had the full perspective of 21 years and developing and delivering work.com and customer 360 words of wisdom?
Yes. I think I would just close by saying, we're all in our homes right now as everyone probably listening to us falls in their home. And yes, as a management team, I think we've never been closer, which is kind of odd that we've been sent to our homes and yet we're operating more closely than ever and faster than ever. Mark and I have said it's kind of like we're back to the startup days and yet we're a 50,000 plus employee company. And I've had the same experience as Brett was saying in working with our customers.
We are no longer walking into our customers' offices selling to them and supporting them and servicing them. And selling to them and supporting them and servicing them. And it's just a sign of, Mark, the success that we've had in building that trust with our customers for 21 years. And I guess the reason why we're coming through this as we are. And so I hope all of you out there are also having that same experience and just really proud of what we've done as a company during this crisis.
Okay. Back to you, Evan.
Okay. Mark, do you want me to maybe I should just tackle the last part of the Brent question there and then we'll go to Evan. 1, Brent, we definitely are always looking for opportunities as the environment has shifted. It provides an opportunity for us to take a beginner's eye on everything and we're certainly doing that. You heard whether it's PipeGen, whether it's reimagining everything we're doing, certainly travel.
There's so many different examples, but we're We're We're obviously very excited about the long term opportunity to serve our customer and help them and we're very aligned. Parker's comment was really awesome about we're very aligned around how to navigate through this and get beyond this point in time and really seize the opportunity for an unbelievably strategically positioned situation to serve our customers over the long term. Mark, then Evan back to you.
Thank you all for joining us for our call today and we look forward to speaking with you next quarter. Hope you are all safe and healthy.