Welcome to Salesforce Fiscal 2021 First Quarter Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one on your telephone. If you require any further assistance, please press star zero. 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 2021 First Quarter 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 at www.salesforce.com/investor. With me on the call today is Marc Benioff, Chair and CEO, Mark Hawkins, President and CFO, Bret Taylor, President and COO, Gavin Patterson, President and CEO of Salesforce International, and Amy Weaver, President and Chief Legal Officer. We'll primarily be in non-GAAP terms. Reconciliations between our GAAP and non-GAAP 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-19 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-K. With that, let me hand the call over to Marc.
Okay. Thank you so much, Evan. 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 moment in time, anything any of us, well, that we've ever experienced. 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. 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 values of every company.
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 two decades, and especially over the last 90 days, the foundation of our company is our four core values: trust, customer success, innovation, and equality. First and foremost among these is the trust that we have with all of our stakeholders. The story of our first quarter is very much the story of trust. Salesforce and our Ohana rapidly taking action to embrace and invest in all of our stakeholders. Indeed, our financial results for the first quarter reflect the unprecedented long-term investment that we've made in our employees, in our customers, and also our communities. As our fiscal year began, we were coming off an amazing fourth quarter.
It capped off another record year for Salesforce. February of fiscal year 2021 built this continued an amazing growth trajectory. By mid-March, of course, and all of you know, the virus emerged, biological and economic crisis. We rapidly pivoted the company to address three 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 through this pandemic in three phases. The first 90-day phase has been about rapid response and investing in all of our stakeholders. We're now entering the second phase, reopening safely. The third phase, which we believe we'll enter next year, will be about a new normal. I want to spend a few minutes on the actions we took during the first quarter and phase I.
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 in 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. 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. We invested in mental health and mindfulness programs to help them. Our core program, B-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 first 90 days of the crisis. In late March, we also gave certainty to our sales team with a one-time guaranteed commission for the first quarter, 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. We invested in our communities. In early March, we were asked by Sam Hawgood, the Chancellor of UCSF, to help him acquire PPE. UCSF was already running low on PPE. Chancellor Hawgood was looking for ways to protect his doctors and nurses and other frontline workers. 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.
As we received 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 million pieces of PPE. In 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, well, they were immediately delivered to the state distribution hub at Javits Center. 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. 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. In talking with CEOs all over the world, it became apparent very quickly that many were looking to Salesforce to help them guide through these uncharted 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. They turned to Salesforce. For some of our customers most severely affected by the unprecedented impact of COVID-19, well, we even granted them a temporary financial flexibility. We also created free rapid response Salesforce Care products to help companies work, to sell, to service, to market from their homes. 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 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. With the 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 a state and county level. That data is also used by Governor Cuomo during his daily briefings. We're able to do all this because our Salesforce Platform provides the agility, the flexibility, the speed to create solutions not in months or years, but in weeks, even days. With everyone sheltering in place, we saw tremendous growth also in our Commerce Cloud's weekly order volumes and our Einstein Bot sessions, both that were up more than 100% since February 1.
Einstein predictions increased five times over this time since last year. We also had an amazing job of happening, pivoting from physical events to virtual events. We developed an online leadership program called Leading Through Change. It's had over 75 million views so far. Incredible. The 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's included phenomenal speakers like the CEO of Starbucks, Kevin Johnson, and also the CEO of Accenture, Julie Sweet, and many more. As the virus continued to spread throughout March, we also got a call from Governor Gina Raimondo of Rhode Island. Gina's 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. This became an opt-in manual process, which a citizen can report that they've been tested for COVID-19 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. Governor Raimondo inspired us to build an app that managed this process and scale efficiently and reliably. We were on the phone with her many times, and so we did it in just a few weeks on the Salesforce Platform.
In addition to Rhode Island, today, we're now helping more than 30 states reduce the spread of COVID-19, including Maryland and Massachusetts, Kentucky, Louisiana, California, and great cities in our country like New York City and other countries, too. This is an incredibly important effort. When we're developing the contact tracing apps 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. While all of this was happening, we also delivered $4.87 billion in revenue, up 30% year-over-year. We delivered $1.86 billion 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. 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, or I would say, wholly encapsulated in the first quarter. We have great confidence that our investments, we already see it in our employees, our customers, our communities in the first quarter. Well, they're benefiting us. They're benefiting us now in the short-term, the long-term, with tremendous strength and tremendous growth.
For the fiscal year 2021, we're updating our guide of approximately $20 billion, representing 17% projected growth year-over-year. 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 and 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. The last few months affirmed the strengths we have in our amazing customer relationships and our ability to innovate, scale, and operate across different industries and geographies, companies of all sizes. 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, for the seventh year in a row, IDC has ranked Salesforce as the number one CRM. We gained more share in 2019. We're now seeing continuous improvement in our business, in our bookings, in our pipeline month-to-date. We've been really surprised by our pipeline growth. It's been incredible. Our pipelines for the second quarter and the fiscal year are really strong. I've been on more sales calls with more CEOs in the last two months than at any time in my career. 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. Many are accelerating their plans for digital-first work from anywhere environment.
For example, in Q1, we signed an incredible and extensive deal with AT&T with the vision of AT&T Communications CEO, Jeff McElfresh, incredible executive, somebody who's just been completely inspiring to me. AT&T is moving to a highly accelerated digital-first world to deliver the most amazing 5G service with an incredible connected experience for their millions of customers and subscribers across every customer touch point. This includes their media properties such as DIRECTV and HBO and Turner Sports and more. With Salesforce, AT&T will further extend this vision of a single view of their customer, single source of truth, 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&T truck pulls up to my office or my home, that's going to be Salesforce. I walk into the AT&T store, well, that's going to be Salesforce. I'm getting an email from AT&T, that's going to be Salesforce. I'm on the phone with the AT&T call center, that's going to be Salesforce. We're going to make sure that they have that Customer 360 enhanced. I'll tell you, when we're integrating all that data, well, MuleSoft is going to connect AT&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 McElfresh, reviewing the incredible progress of the project.
It was clear to me, this is going to empower AT&T to drive more value and build stronger relationships with every customer. We're going to begin deploying this with Jeff and his team to AT&T's employees very shortly. Our goal is by the end of July. Then to tens of thousands of users in the third quarter. 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 to provide that single view of the customer, to build personalized customer journeys, and deliver amazing client experiences in retail banking across all channels.
When the livelihoods of Zions Bank customers were threatened by COVID-19, well, the Utah-based bank turned to Salesforce and Customer 360 to 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 seven days. Even though it's the 38th largest bank in the U.S., it became the ninth-largest distributor of SBA Paycheck Protection Program funds in round one using Salesforce's Customer 360 platform.
One of our ISV partners, nCino, well, they built an end-to-end solution for federal SBA CARES Act loans for small businesses all on Salesforce, and it processed more than $35 billion in loan applications for its banking customers, including KeyBank, IBERIABANK, the world's largest credit union, the Navy Federal Credit Union, all running on Salesforce Customer 360. One of the unique aspects of COVID-19's crisis has been deepening our ties with the local and federal governments around the world. Public sector action has never been greater. 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-19-related issues, including some of the very largest federal agencies.
At the state level, we formed a new relationship with the California Governor's Office of Emergency Services. They implemented Salesforce to create the public good that helps the state leverage data to urgently needed public health resources across California, improve customer service. We did it in days. The U.S. Census Bureau, they expanded their longtime relationship with Tableau as the agency's data analysis and visualization platform of choice. Tableau partners with the U.S. Census Bureau on mission-critical data applications in support of the 2020 Census and B eyond. Important. Internationally, we also had an incredible deal with Commonwealth of Australia, where we partnered with the National Disability Insurance Agency to deliver an improved experience for more than 500,000 participants that are predicted to access disability support by 2025. Those are some of the highlights from Q1.
Looking ahead, as much of the world is beginning to move now into phase II, what we like to call reopening safely. Our Work.com platform, 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, first throughout Asia. It has to be done safely, it's got to be done responsibly, and it's got to be a complex process. The lifestyle. A new PPE, a new 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. Looks very different than it did just 90 days ago.
We're going to need a command center to monitor return-to-work regularly, 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. You're going to need tools for emergency response management. You're going to need expert perspectives from renowned experts, because this is changing on a regular basis. From our incredible ecosystem and tools and workforce reskilling, well, we've bundled all that in to this Work.com suite. You can see it at Work.com. You can see what we built, how we're starting to roll it out, who our partners are. It's a platform for enabling our customers to reopen safely. 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.
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 the 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 at 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. This was the best I've ever seen Salesforce. 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.
With Work.com, well, we deepen those partnerships with the world's largest systems integrators, including Accenture and Deloitte and PwC and IBM. 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. 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. I'm so thrilled also, especially in my Workday partnership with Aneel. Well, that's just an amazing company, and to make Work.com even more valuable to so many of our joint customers. 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. As we move deeper into phase II, 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've been faced with major challenges, 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. 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 the 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 in 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 nonprofit or an NGO. The new normal phase III is going to require organizations of all sizes and shapes, geographies. 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 three-quarters of CEOs, well, they believe this crisis is going to force their companies to accelerate their technological transformation. Well, I mentioned Jeff McElfresh of AT&T. Well, he's 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&T." 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. 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 first.
You've already heard of one of Gavin's amazing deals, and I hope he'll talk about that later on the call. 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 Salesforce and all of our Ohana that we're able to have his experience and his capability as part. I'll turn it over to you, Mark.
Okay. Well, thank you, Marc. 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 company's response to the COVID pandemic and our updated fiscal 2021 guidance. We're focused on investing in our employees, our customers, our community in response to COVID-19 and preparing for a post-pandemic future. We continue to believe that values drive value, and these Q1 investments in all of our stakeholders will result in long-term equity. We want to provide visibility into how our actions in response to COVID-19 affected our financials in Q1. I'll begin with a top-line commentary. Revenue for Q1 was $4.86 last year. We saw good revenue performance by cloud. Our Sales Cloud grew 16% from significant M&A. Service Cloud grew 23% with two points from significant M&A.
Platform and Other grew 62% with 35 points from significant M&A. Marketing and Commerce grew 27% with 4 points from significant M&A. Additionally, we had strong year-over-year revenue performance by region in constant currency. Americas grew 29% with 11 points from significant M&A. EMEA grew 41% with 12 points from significant M&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 diverse industry 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-19 pandemic may impact our customer base going forward.
Our remaining performance obligation representing all future revenues under contract ended the first quarter at approximately $29.3 billion, up 18% over last year. As a reminder, this metric includes both new business and renewal contracts. In Q1, these contracts were approximately three months shorter in duration on average compared to Q1 of last year. 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&T entirely resides in non-current portion of RPO, as our updated revenue guidance assumes no contribution from AT&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 $14.5 billion, up 23% year-over-year. Turning to EPS and operating margin.
Q1 GAAP EPS was $0.11 and non-GAAP EPS was $0.70. 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-19 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 million. 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.
Second, 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 million. 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 million in one-time lease impairments due to vacating and subleasing offices that will likely return below-market rent due to the COVID-19 pandemic. Finally, we prioritized caring for our community by donating approximately $20 million, which came in the form of PPE and cash grants. These unique and mostly one-time variable items were partially offset by approximately $75 million in savings, largely from T&E, due to shelter-in-place orders.
The net of these items created approximately 350 basis points of headwind to operating margin compared to our expectations in the quarter. Regarding our strategic investments, we recorded approximately $192 million 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 $1.86 billion, 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 the 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 million, leading to free cash flow defined as operating cash flow less CapEx of $1.54 billion, down 15% year-over-year. Turning to guidance for Q2 and fiscal 2021. Revenue is now expected to be $4.89 billion-$4.90 billion in Q2 and approximately $20 billion for the fiscal year, the latter which continues to include $50 million contribution from Vlocity, which is expected to close on June 1st. There are two 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. Second, 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 to our 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 two 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 -$0.02 to -$0.01, while non-GAAP diluted EPS will be $0.66- $0.67. For fiscal 2021, we're expecting GAAP diluted EPS to be -$0.06 to -$0.04, while non-GAAP diluted EPS will be $2.93- $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 for mark-to-market accounting as required by ASU 2016-01. For operating cash flow, we're reducing our fiscal 2021 operating cash flow guidance to 10%-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 a free cash flow growth rate of approximately 13%-14% for the fiscal year.
We expect CRPO to be approximately 16%-17% growth year-over-year in the second quarter, which we believe is appropriately conservative and consistent with our revenue guide. In light of the uncertainty surrounding the COVID-19 pandemic, we are reassessing our long-term revenue target for fiscal 2024. We're planning on giving an update during the Investor Day. To close, while the COVID-19 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. As we move into phase II, 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 all our shareholders for the continued support. I wish to each of you and your families and your firms safety and wellness. With that, we'll open up the call for questions.
At this time, I would like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press the pound key. Your first question comes from Mark Murphy with JPMorgan. Please go ahead.
Yes, thank you. Marc, the second 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 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. You may see that we've already started some amazing things online, and we're getting some phenomenal results. In fact, as I mentioned, we've already had more than 75 million views, and I think we're going to have almost soon 100 million views of our Leading Through Change program. I don't know if you've had the opportunity to watch or participate in Leading Through Change, but it's been incredible. That type of virtual program, I believe, is very much going to be something that is going to be a permanent. It's really been able to inspire our customers and our employees, all of our ohana, including our account executives, and enable them with these programs.
While we're certainly going to miss being together at Dreamforce this year, 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 to have virtual events, build pipeline, build community, build brand, create and deliver new products. I have a lot of confidence in our ability to execute without a physical Dreamforce this year. Not just Dreamforce, by the way. As Mark mentioned, we've canceled all of our physical events for this year, and we had to pay an extremely large amount of cancellation fees that all got tossed into that first quarter number. All those world tours and all these other amazing events, we do 1,000 events a year. Well, we're just moving as many of them to the virtual programs as well.
Not just the big events. There's lots of small things happening. We're executing. It's a great question. Thank you.
From Terry Tillman with SunTrust. Please go ahead.
I guess my question relates to, it's great seeing the AT&T win. It seems like a great example of the digital transformation opportunities. With Customer 360 and these larger transformational deals, Marc, maybe you could give us an update. You talked about strengthening pipeline. How do some of these larger transformational deals, how do you see that playing out the rest of the year? Or is 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. Then I've been very fortunate this quarter to have Brian Millham running our global distribution organization. He's also running it in the second quarter while we're bringing Gavin on board. 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, has done a phenomenal job this quarter. I think that what we see reminds us a lot of, over a lot of different times in the last 20 years at Salesforce, 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. That's one thing I've been super proud of with the distribution organization, their ability to deliver that, and then to see that start to manifest in these really strong pipelines. Brian, do you want to comment on that? Are you going to?
Yeah, Marc, I think.
Go ahead.
Made the comment of our pipeline over the last couple weeks here has been very encouraging for us. That strengthened pipeline comes in all forms, as you said. It comes from different segments of our market, different regions of our market, different products. We're very encouraged by the future, both the large deals and the small deals that we're getting done across our incredible distribution organization. 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. I guess my first question is for you, Marc, thinking about this nice pickup in the pipeline. I'd love that. Is it across certain verticals, markets, products, enterprise, commercial? I have a follow-up for Mark Hawkins.
Well, thanks. I'm going to have Bret 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've put in place. I'll tell you the four 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 one, 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 focused. What percentage of those sales and service professionals, managers, executives are out there and really working with customers? This is an unusual environment.
That provided an opportunity for lots of new training, new ideas, new programs. The second thing is to enable them with that, to 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. First in this core digital transformation, next was really how we could provide tremendous value in reopening safely. That became the third leg of our stool. The fourth leg became really critical, the tactical plays and critical aspects of building that pipeline up.
Bret, you've been the architect of all of these things, and can you talk to us about how you put that into place?
Yeah, Marc. 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 this digital imperative. 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. With marketing, Einstein's doing over 12 billion 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, GMV is up over 100% year-over-year as commerce digitized overnight.
Even on industries, as Marc 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, Marc, being extremely important. I think that every single CEO, every single CIO I talk to has the same message, which is, whatever digital transformation they had left has just accelerated, thanks to COVID-19. 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.
Oh, 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. Obviously a lot of companies are expecting a tougher Q2, 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? I know you don't guide CRPO beyond a quarter, 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, Derrick, for the question. Happy to do that. For CRPO, when we look at that for the Q2, you should think about it is approximately 16%-17% growth rate at CRPO. 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. We think it's appropriately aligned, number one. I think in terms of the recovery, 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.
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 would be. That's partly based on the learning from the great financial crisis. 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 light of the uncertainty that's out there. I think that would be something to think about. In terms of the recovery itself, from an IT spending standpoint, we think that recovery in FY 2022, which begins for us in February. Could it be sooner? We see companies that are doing that. That's just how we think about the demand environment.
One thing we learned for sure. 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. We really see that in this particular case, amongst a much bigger opportunity that we all know about, including a $170 billion plus TAM. That's one of the fastest-growing parts of the market, but everything's being impacted temporarily with the Pandemic. That's what I would say, and happy to have if Marc wants to add anything to that. Hope that helps, Derrick.
Your next question comes from.
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 this amazing organization called the Standard Bank Group. Gavin, can you just fill in how you see this market unfolding right now?
Well, thank you, Marc, 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 Marc personally for many years as well, as a customer at BT, where I was the CEO. I started my career at Procter & Gamble in brand management. I know the company reasonably well as a customer. 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 latterly picking up executive responsibilities for international. That's where I helped steering the Standard Bank deal at the end of the quarter, which was a big win for us. I think very much a platform deal for us in Africa as we open up that market.
There are many things I hope I can bring to this job, from viewpoints, a CEO viewpoint. 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 shock and rebuild gives me great confidence that the opportunities are there. As Marc said, the majority of customers that we're talking to are saying, "How can I accelerate digital transformation?" There's no better partner to do that with. 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.
Your next question comes from Kirk Materne with Evercore ISI. Please go ahead.
Yes, thanks very much. Marc, thanks for all the work you and the team's done to help out in this crisis. You guys have done some great things. My question is for Marc B. 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 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. 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 sort of what's going to happen in the fall around COVID? Kind of curious so we can keep an eye on some of the broader data points out there and try to triangulate to your thinking on business momentum. Thanks.
Well, 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. For some industries, recovery. In other industries, it's actually an accelerator, and it causes them to grow faster than they anticipated. I mentioned with AT&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 capabilities. I really saw all that come together in the first quarter. I was really impressed with the bookings that we achieved in the first quarter. 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 Salesforce perform. It was just incredible to see all of our Ohana, the sales organization, service, engineering, across the board.
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. We're quite optimistic about what the future is going to look like for us. Brian, do you want to fill in a couple details for us?
I appreciate that, Marc, and 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. 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've reacted to very quickly, and are helping our customers address these core issues. When you sit in that position, I think it's why we see our pipelines accelerating right now. Just very pleased with where we sit today.
Your last question comes from Brent Thill with Jefferies. Please go ahead. Your line is open.
Thanks. Marc, just 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? 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 fill in the details on the pipeline as well. Gavin?
Yeah. Sorry, Marc. I was wondering whether you wanted Brian to get this. What we're seeing is confidence is building almost week by week. Clearly, there was a shock that hit the system, particularly in March. 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 month in every market yet. The broad sense of direction is building, get much better visibility for bookings, not just Q4 as well. I can sense the confidence that's building in the sales organization. We're not getting carried away with ourselves.
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. 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?
Yeah, I would. Tremendous confidence in our sales teams right now. 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. We feel very good about where we sit. I hate to repeat myself, but in a time when you need to be relevant and have products that fit the customer need, we feel like we're in a very good position right now. Very happy with where we are in the early months of the quarter.
Bret?
Yeah, I think echoing both Gavin and Brian's comments, I've had three customer meetings already today, and every single one had one theme, which is pandemic towards the next normal and the new normal. The humility 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. They are the most relevant platforms available to really help their company transition to that new normal. 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.
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. Amy, can you fill in exactly how do you see the situation moving forward?
It has been a whirlwind of a few months. When I look at what we went through and where we're going, what really stands out to me 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. 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. 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.
Yeah, I think I would just close by saying, we're all in our homes right now, as everyone probably listening to us all is in their home. Yet, as a management team, I think we've never been closer, which is kind of odd that we've been sent to our homes, yet we're operating more closely than ever and faster than ever. Marc and I said it's kind of like we're back to the startup days, yet we're a 50,000+ employee company. I've had the same experience as Bret was saying in working with our customers. We are no longer walking into our customers' offices in suits and having that kind of separation. They trust us, so they're letting us into their homes as we're selling to them and supporting them and servicing them.
It's just a sign of, Marc, the success that we've had in building that trust with our customers for 21 years, and I think it's the reason why we're coming through this as we are. I hope all of you out there are also having that same experience. Just really proud of what we've done as a company during this crisis.
Okay, back to you, Evan.
Okay. Marc, 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. One, 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 pipe gen, whether it's reimagining everything we're doing. Certainly travel. There's so many different examples. We're constantly looking at focusing, obviously, on delivering growth, profitability, and cash flow over the long term. 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. Marc and 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.
This concludes your call. You may now disconnect.