Welcome to Salesforce's Fiscal 2022 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. Please be advised that today's I would like to hand the conference over to your speaker, Mr. Evan Goldstein, Senior Vice President of Investor Relations.
Sir, you may begin.
Thank you, Chantal. Hello, everyone, and thanks for joining us for our fiscal 'twenty two Q1 conference call. I'm Evan Goldstein, Senior Vice President of Investor Relations. Our 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 Amy Weaver, President and CFO Brent Taylor, President COO and Gavin Patterson, President and Chief Revenue Officer.
As a reminder, our commentary today will primarily be in non GAAP terms. Reconciliation between our GAAP and non GAAP results and guidance can be found 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, Acquisitions, 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 these 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 to Mark.
Well, thank you so much, Evan, and thank you for everyone being on the call today. I mean, it's just going to be a great call. I'll tell you this is the best quarter Salesforce has ever had. It was just a phenomenal Q1 and everyone is So excited to do this call with you and to talk about it and also just to talk about so many of the things that are important to Salesforce Because everyone knows business is the greatest platform for change, we do believe that you can do well and do good at the same time. And before we go into these incredible results, we just want to let everybody know that our hearts and prayers are with all of our Ohana in India.
They're on our mind every day and we're so sorry for everything that they are going through. So I am now here with Amy and Brett and Gavin and Evan as well. And I'll just tell you that we're all vaccinated. We're grateful that we can be together. We're grateful that we are In a moment where we've been able to do that, we just finished a 2 day off-site with our top managers from around the world.
We This is our 3rd off-site we've done. We've done about 8 total management off sites. And through the miracle of testing and now through the miracle of vaccinations and the ability to get Back in the business and be in person, we're just grateful for that. We definitely are missing each other and it's been great to be able to run our business in person And to open our offices, Amy and I were in our offices on Monday in San Francisco together on our Ohana floor and it just It was an emotional moment to know that we're back and that our Ohana are back in the offices and that we're opening back up. This This is just a critical time.
So it's an amazing quarter and it's juxtaposed against the pandemic is not over everywhere, but it's Starting to be over somewhere and certainly in San Francisco, where we have 850,000 People, but we only had a couple dozen infections per day last week, so it's a great moment. So we're grateful. We're grateful for this Incredible performance by our team. We're grateful for the phenomenal quarter. It far exceeded our expectations.
And I've just never seen a quarter like Gavin will go into the details. Brett will go into the details. It was just incredible. It was beyond our It's not just the best first quarter we've ever had. I think it's the best quarter we've ever had.
We delivered $5,960,000,000 in revenue. It was up 3% year over year. Just the customer velocity, the pipelines, the growth of the company, the ability For the teams to interact and have a huge impact, it was just awesome. We delivered $3,200,000,000 in operating cash flow. And as a percentage of our revenue, it's just amazing what Salesforce can do today.
Salesforce is a company. I said doing well and doing good. I mean, Here's the doing well part, dollars 3,200,000,000 in cash flow on $596,000,000,000 in revenue and that's That's up 74% year over year reflecting the strong performance we've had since the impact of the pandemic began last year. Operating margin again and a huge I'll out here to Amy and I'm going to talk more about Amy's amazing performance with the company and how she's rebuilt this incredible operating margin model and operating model and How she's really kind of almost redesigning the company from the bottom up. It's awesome what she's been doing.
And you can see it here. Operating margin in The quarter was a healthy 20.2%. You look at the last 4 quarters, now starting Q2 of last year, Q3, Q4 and Q1, our margin, our revenue, our cash flow, it's awesome. And to see these changes that Amy has brought to the company has just inspired me. Now for the fiscal 2022, I'm thrilled we are raising our revenue, our guide by $250,000,000 to $26,000,000,000 this is really one of the most this is one of the largest raises we've really ever had.
It represents 22% projected growth year over year. And we're not just raising revenue. And again, thanks to Amy. We're raising our operating margin to 18%. So that is amazing, incredible.
And in a few years, we're going to be doing 50,000,000,000 And by fiscal year 'twenty six. So that is an incredible thing. I mean, we're really seeing some momentum and some cadence that's Very powerful for the company. And the quarter once again demonstrates the strength and durability of our business, the quality of our Ship team, you're going to hear that today on the call, the relevance of our products, the incredible demand for digital transformation. But ultimately, it's been about And when I can talk about some of these customers and their amazing success with our products, companies that we know like Honeywell, 3M and Sonos and in the Sonos story is just awesome where they've just had this 84% growth when they went to consumer using our products.
We're so grateful to them. But also you're going to see it into the core products like I'm going to hit some of the key things like how 8 out of the top 10 deals included Tableau. What a success That acquisition has been and MuleSoft and ExactTarget and how it's all worked out so well for us. This quarter is really just demonstrating that strength and durability of our business. And I'll tell you, we're the leader in the CRM market.
We all know that. We all know we're number 1 CRM. Everyone just saw the IDC again, ranked Salesforce number 1 by market share in CRM. Everyone knows the Strategic nature of CRM and this is the 8th year in a row that we're number 1 in CRM, which is awesome. And last week, Salesforce also received one of the very highest gradients from Gartner as a vendor.
We track that information. It's our customers Talking to Gartner, we tracked it and saw this incredibly what we call strong overall vendor rating. That meant a lot to us. And I'll tell you something else that means a lot to us. And this is kind of a moment.
And I think we can say this, We have to kind of get our head around this. We're about to pass SAP as the largest enterprise applications company All the analysts of their models, I know you all track SAP and Salesforce and don't really talk so much about SAP since they mostly exited The CRM market so many years ago, but I'll tell you that, it's awesome to see not just be number 1 CRM, but we're going to be the number one enterprise software applications company in the world passing SAP. This is a moment. We can see it's imminent. And this pending acquisition of Slack also, I mean, we've never been better positioned for the future.
This is an all digital, it's an all work from anywhere world. It's made our companies, Salesforce and Slack, will sit more important to customers So bringing them together is so exciting. And once this merger is approved, we're going to be able to build Slack and all of our products will all become Slack first. It's going to make our customers more productive. We're going to work with software companies on building incredible new capabilities like we've seen These amazing examples of what Slack can do, I'll tell you, we're really excited about creating this number one enterprise Applications company.
And I can't wait for all of us to be back together and with you and hopefully we'll be together in person at our Investor Day coming up. So of course, the real highlight of every quarter is the success of our customers. Customer success is one of our highest values, trust customer success, innovation, The ease of use of our products, quality and we just had amazing traction during the quarter across all All parts of our business. We hit an all time high in 7 figure plus transactions and I hope that Gavin will talk about that. It was really this kind of first really quarter in our company history, more than 120% growth year over year in these huge transactions.
It really shows the whole world is going digital and customers are connecting with their customers in a new way and everyone needs CRM to do it and they need analytics and they need integration And we are the leaders in that area. And we're able to partner with them to deliver this incredible capability. On average, these 7 figure transactions, they included 4 or more of our clouds. That's awesome. It really goes to show The durability of the business built by so many amazing products, Sales Cloud, Service Cloud, Marketing Cloud, Community Cloud, Commerce Cloud, Integration cloud.
The analytics cloud with Tableau is awesome. And our successful integrations of At Target and Tableau and MuleSoft continue to drive this incredible results for our customers and gives us so much confidence in this pending Slacker We're seeing more and more inclusion at Tableau and MuleSoft in our large deals as customers accelerate their digital transformations. I mean, I'm sure it will shock everyone that Tableau was part of 8 of our top 10 deals. That really is evidence and the integration we've had with Customer 360 of its success. And MuleSoft was included in 5 of these Top ten deals.
It was awesome. Honeywell is a great example and I love Darius at Davichak, an incredible CEO, great example of a company investing in They've been manufacturing innovative products for more than 100 years, creating connected customer breaking down silos for their 100,000 employees globally. But with Sales Cloud, Honeywell is enabling its global sales To manage thousands of customers and sellers from anywhere and anyone who was with Brad and I in Washington DC or got to watch it online, we went there to be with our customers and employees in person and we did this incredible world tour. Employees in person and we did this incredible world tour. And we had the Honeywell executives there talking about this incredible information of their global sales team.
I knew it was really cool. And Tableau Dashboards and Honeywell are providing their sales teams with these key insights to improve their productivity. And with Mytrailhead, which is our reskilling platform, that's Honeywell reskilling their sales team right in their flow of work, Increasing their performance and Service Cloud together with Field Service and Experience Cloud is enabling Honeywell Seamlessly dispatched technicians for on-site product maintenance and proactive asset management and connected service partner experiences and customer experience for scheduling Appointments and instantly troubleshooting problems. In fact, it was really that field service capability that helped us to amplify our relationship With Honeywell. And that's when Darius and I started to really collaborate and say, wow, we could bring this to the aviation business and Honeywell and transform How they're doing their amazing jobs?
I'll tell you, for a long time, we've had a trusted relationship with Dell Technologies and their Incredible founder and tremendous brand of Salesforce and Michael Dell. Last year Dell partnered with Salesforce Professional Services implemented the world's largest deployment of sales cloud to support its sales reps go to market channel partners. I'll tell you, I just finished Michael Bell's New book. It's called Play Nice, But Win. And it inspired me.
And it really was exciting that Salesforce And Dell, we have this partnership that helped them win. It was powerful. And with Service Cloud, Dell is also giving its service agents a 360 degree view of every customer. That was so awesome to see. And they're using Marketing Cloud for B2B customer journeys.
They're Transforming their seller experience, it's incredible. Another amazing CEO that we work with Mike Roman at 3 ms. And For those of you who watch Brett and I in Singapore, Brett and I flew to Singapore for the kickoff of the quarter. And we were there Singapore and we're live with our customers and with our Ohana and employees and everybody and government leaders. And Well, we had the opportunity to talk to Mike Roman, the CEO of 3 ms, the iconic innovator, the center of efforts to combat COVID-nineteen.
And we were so happy to partner with them. And today, 3 ms is using Customer 360 across 83 countries. And when Mike realized there were counterfeit masks that weren't providing the protection of a 3 ms mask, they partnered with To make sure we can immediately deliver fraud reporting center with Service Cloud and we did it. It was an awesome story and we had to do it instantly, immediately. There's been so many stories like that, especially in our governments.
You see even what happened or what just is going on right now in Australia and Melbourne, they're again relying on Salesforce's contact tracing system to resolve this breakout. They're all locked down. I hope that they'll be able to identify everyone quickly and open back up quickly. And I know they've got the infrastructure To do it with salesforcework.com. It's an incredible story that's going on down there.
3 ms, getting back to them, well, they're also piling Tableau To create a single dashboard for their entire business, Tableau continues to be a strategic part of so many of our customers' business. And we're working with the pioneering online mortgage lender Rocket Mortgage to make complex transactions like buying a home or a car and evaluating personal loan. I mean, it's amazing what's going on with Rocket Mortgage. I'll tell you, I've really enjoyed working with that company. And they are inspiring because they themselves are just such tremendous innovators.
And if you know their CEO, Jay Farner, well, You'll understand how they're using our Financial Services Cloud and Marketing Cloud to deliver a source of truth for all their customers' data and drive Personalized engagement scale. Jim is incredible. And during the quarter, they also selected MuleSoft to integrate across all their various systems. Of course, I mentioned Sonos before. It was incredible story.
They went digital direct to their consumer. Well, Grew their business 84% year over year. And with Marketing Cloud, Sonos connected with their customers through email, through mobile, through social channels. They built a Customer 360. They started pioneering a single source of truth and it continues to scale its business.
They've even invested Very deeply in e commerce with Salesforce as well as Tableau. Great story. And I'll tell you, Those stories and the story I just mentioned like what's happening in Melbourne, well, that's all about our public sector business or the country of Japan with our vaccine cloud. There are so many places here in the United States like Lake County. I mean, it's been an unbelievable year.
It's been an unbelievable quarter. I mean, it really has been a lot about doing well and doing good. It's been about really showing how Salesforce is. The business And you know, the business could be the greatest platform for change. Now I'm telling you something that's really exciting and something new and I couldn't be more excited to We're going to take another huge step forward here.
Now I've been telling you that we've been doing a number of off sites, Bringing our executives together, we're both in our offices now. We have our employees back and we're about to take another huge leap forward. We're taking a huge leap forward because Dreamforce is coming back in person in 2021 to San Francisco as Simultaneously in New York, Paris, London, it's going to be a global dream force. And we're going to have thousands of people at every venue. We're going to work closely with local officials and we're going to do an amazing show.
I hope all of you will be there September 21 to 23. It's going to be the 1st global Dreamforce and we're going to host groups of trailblazers and COVID-nineteen safe places Along with tens of millions online, it's going to be a hybrid event, physical and digital. Now we're going to follow these public health guidelines And I expect all of you to follow them as well. And in the U. S, we're going to require our attendees to be fully vaccinated to attempt.
That's
going to
be a critical part and it's how our core epidemiologists and medical teams at Salesforce have decided that we can do this amazing reopening, Dreamforce. We've worked with our longtime partner and customer Marriott. We've worked with leaders in this in our local medical communities and university, Including Doctor. Larry Brilliant, who's been a great friend of our company, a tremendous epidemiologist to follow these best practices and Create this amazing new Dreamforce. So Dreamforce 2021 is going to be the most inclusive, the most successful Dreamforce ever.
It's going to bring the magic of Dreamforce to anyone, everywhere, anywhere. I mean, it's It's going to be great to be back together and be with all of you. It's going to be a family reunion, incredible family reunion. And I'm also thrilled that earlier this month we opened Salesforce Tower. As I mentioned, Amy and I were together in San Francisco.
We also opened it in London. It's great to be back to work. And We want to be the pioneers in back to work. We know that people are going to still be working at home, but they're going to be in the office too. And we're going to be doing these off sites and events and get togethers and collaborations.
And we're even going to have this incredible New training facility, a cultural immersion facility, a place where we could bring large groups of our employees or even customers and their Families together with Salesforce Ranch. And we couldn't be more excited about that. And we see those four things together in the office, At home, events like off sites and Dreamforce and even this incredible new training facility, It's really inspired by General Electric. I went to Crozeville when I worked so closely with GE and their digital transformation. I was wondering, wow, would we ever have something like this?
I never saw the need. Why would Salesforce need a Crotonsville? But today we knew. Because so many of our employees are at home, how are we going to immerse them in our values? How are we going to educate them on our products?
How are we going to show them what Salesforce is really all about? And that's why this incredible facility will be so important to us and we're looking forward to talking about that. Over the last 22 years, we've built an amazing Culture, amazing company, soon to be the number one enterprise applications company in the world, already the number one CRM in the world. I'll tell you when we started this business, we had 3 dreams to create a new technology model. We call that The cloud, a new business model, subscription, we all understand that now and a third model, a third model based on 111, 1 percent of our equity, 1 percent of our time are products and that's become the business' the greatest platform for change.
We couldn't be more excited. And I'll tell you 6,000,000 employee volunteer hours, well, that's evidence that this is working, 450,000,000 in grants so far, 51,000 nonprofits running on our service for Free, it's more evidence. I'm happy to give this testimony that our culture has enabled us to create an amazing company, but also to attract entertain amazing talent. And I'm enormously proud that Fortune just ranked us as one of the best places to work in the world. Again, I think this year we're number 2, But it's that 13th year that we've been on this list.
It's really evidence that we can all do more in business. We can do well and we can do good. And before I turn this over to Amy, I want to make sure you know about 2 amazing reimagine Events that are also coming up this month. We're going to have Connections on June 2, our digital marketing event of the year and on June 23, Trailhead DX, I hope you're going to be with us for both of those. I hope you'll be with us for Dreamforce.
We're so grateful for your incredible partnership during this year And we're delighted to deliver the best quarter we've ever delivered. And now a key part of that, Amy, go ahead.
Thank you, Mark, and good afternoon, everyone. Performance in Q1 was impressive across all financial metrics. We saw record levels of Q1 new business performance and strength across all products, regions and customer sizes. Importantly, we were able to achieve growth while also delivering profitability. So let me take you through some of the results for Q1 fiscal 2022.
I'll begin with top line commentary. Total revenue for the Q1 was $5,960,000,000 up 23 Year over year or 20% in constant currency. The strong new business pipeline that we discussed last quarter enabled us to deliver these results.
While we
had a favorable comparison for Q1, our 2 year new business CAGR also illustrates the continued strength in the business. A few areas to highlight. As Mark mentioned, we saw a record number of Q1 7 figure deals. Not only were these deals big, they were multi cloud transformation, with on average more than 4 clouds included in each. Our vertical strategy continues to align our products to strategic industries.
In particular, we saw strength in the public sector, which continues to accelerate as governments around the world turn to Salesforce solutions. Service Cloud demonstrated another quarter of incredible growth at scale, with Q1 revenue of 1,500,000,000 growing 20% year over year. And Tableau continues to perform well. We are pleased with the progress of the integration. For example, in Q1, Tableau was in 8 of our top 10 deals for the company and in more than 60% of our 7 figure plus deals.
Revenue attrition in Q1 was between 9% and 9.5%. We continue to be pleased with the progress made on attrition. Our remaining performance obligation, representing all future revenue under contract, ended Q1 at approximately 35 $6,000,000,000 up 19% year over year. Current remaining performance obligation or CRPL, which represents all Future revenue under contract that is expected to be recognized as revenue in the next 12 months was approximately $17,800,000,000 up 23% year over year or 20% in constant currency. Turning to operating margins.
Q1 non GAAP operating margin was 20.2%, largely driven by revenue outperformance and incremental expense efficiency. Q1 GAAP EPS was $0.50 and non GAAP EPS was $1.21 The outperformance in the quarter was primarily due to Higher revenue and expense efficiencies as well as realized and unrealized gains on our strategic investment portfolio. These mark to market adjustments benefited GAAP EPS by approximately $0.23 and non GAAP EPS by approximately 0.24 Turning to cash flow. Operating cash flow in the Q1 was 3,200,000,000 up 74% year over year. As a reminder, last year's cash flow seasonality was impacted Tacted by our decision to provide temporary financial flexibility to some of our customers during the pandemic.
And we continue to expect cash Choice seasonality to skew higher in Q1 and Q4. CapEx for the quarter was 171,000,000 leading to free cash flow of $3,100,000,000 up 99% year over year. Before moving on to guidance, I want to update you on the status of the Slack transaction. We remain on track to close Thank you. Now as we've refined our Q2 and full year guidance, we have also refined our expectation on the Closing date, which we now expect to be near the very end of the quarter.
So I want to emphasize that all guidance assumptions Changes involving Slack are completely timing driven. So turning to guidance. We expect Q2 revenue of $6,220,000,000 to $6,230,000,000 or approximately 21% growth year over year. This guidance 20%. This guidance assumes approximately 3 points of growth from Slack.
As a reminder, Q2 Fiscal 'twenty one benefited from strong renewal performance. We expect Q2 GAAP loss per share of negative 0.10 dollars to negative 0 point 9 dollars and non GAAP earnings per share of $0.91 to $0.92 Our assumptions include a $0.09 impact from Slack, primarily driven by OIE and transaction and integration costs. Now moving to fiscal 2022 update. As a result of our Q1 We are raising our fiscal 2022 revenue guidance by $250,000,000 to $25,900,000,000 to $26,000,000,000 or approximately 22% growth year over year. Now this guidance incorporates an expected revenue contribution $500,000,000 from SLAC due to the changes I mentioned in our closed timing assumptions.
Our guidance continues to include 190 Net of the revised Slack contribution, this represents a $350,000,000 raise Our decision to raise fiscal 2022 revenue is reflective of our Q1 performance and our confidence in our ability to execute for the rest of We are also raising our fiscal 2022 non GAAP operating margin to 18%, an expansion of 30 basis points This continues to include an expected 160 basis points headwind from SLAC continued investment in our core business and the moderate increase of travel in the second half of this year. We are raising fiscal 'twenty two GAAP diluted EPS to $0.22 to $0.24 and non GAAP diluted EPS to $3.79 To non GAAP diluted EPS, please recall that our OIE and EPS guidance assume no contribution from mark to market accounting as required by Now expecting 12% to 13% growth year over year. The increase from our previous guide is primarily driven by revenue performance and by the refined timing expectations on M and A. The diluted cash flow impact of FLAC and Now represents a headwind to our year over year growth of approximately 8 points. We continue to expect CapEx to be approximately 3% of Revenue in fiscal 2022, resulting in a free cash flow growth rate of approximately 12% to 13% for the fiscal year.
Excluding the The impact of M and A as previously noted, this rate would be 22% to 23%. To close, our impressive start to Fiscal 2022 positions us well for the rest of the year and keeps us on track to achieve our goal of $50,000,000,000 by fiscal 2026. It really was a terrific quarter, and I'm grateful to our employees for their focus on both growth and efficiency Finally, it has been a pleasure to meet many of our shareholders over the past few months. So I want to thank all of you for your continued support of Salesforce. And with that, Chantal, let's open up the call for questions.
Thank you. Please limit yourself to one question to allow time for everyone's questions. Please stand by while we compile the Q and A roster. Our first question comes from Kash Rangan with Goldman Sachs, your line is open.
Hi, thank you very much. Congratulations to the team. My first question is for Amy. Amy, Nice work on the margins. And clearly, Mark talked about how you're reimagining the company from a fundamental level.
Can you just talk about What are the things that you're working on that would give you the right balance between growth, which is great, and the margin expansion? And if I could I sneak in one for Mark. As you look at the future of work, what is the position for Salesforce dotcom as you look at that How is sales force positioned to take advantage of what you believe will be the future of working and whatever that is that we will work in the future? Thank you.
Hi, Kash. Thanks for the question. So when I look at the balance between growth and Profitability, I want to be clear that growth remains our number one priority. Investing into growth, especially in this demand environment is simply the best thing we can That said, I am a big believer that a focus on discipline makes for a stronger and more durable company. So over the long term, I believe we need to be able to deliver both.
Well, Kash, I really appreciate your question. And we have a tremendous vision for the future of work at Salesforce, future of our own business, like I mentioned, at home workers or in office workers, The ability to meet and have off sites and events and programs and large cultural facilities like we talked about, but we believe there is a
fundamental technology platform that is needed to
bring all this together. And we also That is needed to bring all this together. And we also believe that we also have to include all stakeholders, not just our company, but Our customers and our partners and even consumers and I think that Brett has created an incredible vision For the future of work and an incredible platform and when you think about as well what Slack is going to do in terms of transforming our company when each one of our clouds becomes Slack first, Well, that I think is a huge accelerator on all this. So Brett, would you just kind of tell us what is the future of work?
It's a great question. And more importantly, it's a Question on the mind of every CEO and every single one of our customers. When you look at the trends of this Last year, like that wonderful Honeywell story that Mark mentioned in his script, they shifted 7,000 salespeople from in person to virtual customer meetings. Customer meetings aren't going back to conference rooms only. They're going to stay on Zoom as companies like ours just realize that We can execute as well as ever before in this digital environment.
The contact centers that move from being buildings to be in the cloud, thanks to the Power of Service Cloud, They're not going back to buildings anymore. When you think about the move from doctors' offices to telemedicine, you look across our portfolio, the move to Digital Commerce and Digital Marketing and Incredible Cyber Week numbers we talked about last quarter, we really think that this Digital Customer 3 This platform we've been building is an absolutely crucial part of the future of work for every single one of our customers, in particular, because things aren't going Now back to the way they were. It's also, as Mark mentioned, I think one of the reasons we're so excited about the prospect of closing this Slack transaction. When you think about What does it mean to succeed in the all digital Work Anywhere world? It's Customer 360, which enables you to digitize your entire customer experience and get back to growth in this Incredible economy and it's the digital HQ from Slack, which enables you to connect all of your employees, all of your partners and all of your customers together in this And getting back to growth in its
new normal.
Our next question comes from Brent
I guess, first, great to hear this New concept of a regional in person dream for us. Looking forward to an in person reunion here. I guess, for maybe Mark or Brett here, Salesforce has the by far the broadest portfolio of different cloud I was hoping you could parse out what customers are asking for, what Cloud application could see the highest uptick in interest as you look at the pipeline. You mentioned Tableau being a meaningful Part of the large deal pipeline, but would love to just better understand what cloud applications specifically are resonating the most here in this Kind of post vaccine era that we're entering?
Yes. Thank you for the question. I think one of the things if you see the numbers, the strength is really across the portfolio. When we talk about the fact that Of the 7 figure deals, they on average included more than 4 of our clouds. We're not selling individual products.
We're selling a Customer 360 solution to really transform the entire customer experience. That said, last quarter, I talked a lot about the amazing growth in marketing and e Commerce due to Cyber Week, it's really heartening to see just all aspects of the economy in our portfolio growing. One of the most fun for me is this quarter in Sales Cloud, we're seeing over 5,000,000 opportunities created every day. That is almost a 20% increase over last quarter. This is every B2B selling team in the world investing in growth again, Recognizing the demand environment we see in the economy in every single part of our customer base.
Another great example of this is that and I don't even know if you know this, Mark, but in April, Einstein started doing over 100,000,000,000 predictions per day. And it's a great example of these platform investments that we did multiple years ago that our Customers as the whole economy goes digital, is really are really benefiting from. When you think about what does that mean, it means that every e mail you get is More personalized, it means that every e commerce you page is suited to your interest and your needs, driving growth and success for our It really represents, I think, the importance of these foundational technology investments. And another great example of this, Mark talked about Customer 360 Analytics and Tableau integration with MuleSoft. You're really seeing the importance of, I'll call it that technology foundation as it relates These Customer 360 multi cloud deployments, MuleSoft is now doing 4,860,000,000 integration transactions That is up 28% quarter over quarter.
And it's sort of the boring but important part of this Customer 360 integrating all of those legacy systems so our customers Can move faster in the face of an economy that's, I think shifting more rapidly than ever before and really I think shows the importance of Our acquisitions as it relates to our overall value proposition of Customer 360.
Our next question comes from Keith Weiss with Morgan Stanley. Your line is open.
Excellent. Thank you guys for taking the questions and great start to the year. It looks like there's a ton of momentum at Salesforce right now. Maybe one question for Mark and one for Amy. For Mark, there's been some investor debate on sort of to what degree digital transformations are really accelerating.
A lot of other companies had More mixed or difficult Q1, you guys seem to really hit it out of the park. But with this Q1, can you tell us kind of your view on sort of How your customers are changing their investment profiles, and when is that going to hit? Is that something that is really a 2021 event or Because of the big strategic nature of these deals, it could take some time to flush out. I guess I'm asking how is the I'm looking for the big strategic deals. And then the question for Amy.
We were impressed when you sort of It was 17.5 percent operating margins with the initial FY 2022 guide. Now you're raising it another 50 basis points. Can you talk to us about does that come from sort of expenses being pushed out? Or is it just kind Is there actual kind of more efficiencies that you're finding in the business that enable you to raise the operating margin guide here? Thank you.
Well, I'm so excited that you're excited about Amy's new models. I mean, I by the way, also I mean, I think Kash said it well. She has reimagined the business. She has rebalanced our ratios. She has figured out how to Take these kind of changes that have occurred in the pandemic, which is less travel and less real estate and less events and kind of rebuilt the company From the bottom up.
And I think that's where we're really starting to see AV's genius kind of take place, which is that when I look at the revenue, You know, the 596, up 23%, 20% in constant currency. The cash flow, 3.2 But then when I really get down into this operating margin at 20.2%, but also the ability to raise for the year, it really gets down to This new model that she has really pioneered and has installed in the company and has given us a fresh look at how we run our business and what we're going to do in the future, how we think about the bright balance between revenue and cash flow and margin. And the pandemic gave all of us the ability to reset our lives, but also our businesses. And when we look at resetting our businesses, we also have to reset Our financial models. And I think that this is the result of now 4 amazing quarters of this financial model emerging.
And I think we're going to see that continue to pay out for the rest of the year and future years as Well, that we will benefit from this. And I don't think it's something that's getting pulled forward or pushed back or this or that. It's all 0 So that's what's exciting and it's a commitment that we have to a new model and a new approach and also this idea that it's a new way to work. Now in regards to the customer focus, I think we just have never seen customer demand like this. And We don't there's certain applications that we've been asked not to profile on the call, for example, in regards to some things that the U.
S. Government has done in In terms of making sure that stimulus gets to the right place at the right time. And we were asked to do things in a matter of weeks. It's not just limited to our government. It's other governments.
It's other businesses. I mean, I've never seen and I said this in the last couple of calls, So many what I would call emergency deployments. Usually they say, hey, we'd like to have this in 6 months, 12 months, the most 18 months. That's one of the reasons they come to Salesforce. Very fast time to value.
This is critical. But for us, they want instant time to value. They're like, wait, we have to build this in the boat. We don't go. We got to go.
All right. We'll go. We'll build it. We'll deliver this. We'll make this happen for you.
And I've been so Fortunate to have Gavin really by my side during all of this. I mean, everybody knows Gavin's tremendous Lineage and Gavin worked and I worked together and been friends for more than a decade. But of course, as the CODT, I was always admired his business process and Business practice and his ability to bring discipline. But now watching him run our customer organization and what he's done now Over the last year, that's just been a shock to me. But Gavin, I think you should just kind of come in here because it's not just Amy who's reimagined the financial model.
You You've reimagined the entire customer model, how we're going to market and the balance of sales and service. And you've reimagined The level of management that we have and where we're putting that management, level of capacity, the relevance, the participation, I mean, the enablement, these things that you've laid in, so would you just tell us give us what's happening on the customer side and how do you see the market
Thanks, Mark. As you say, it's been an absolutely stellar quarter, an incredible quarter. And three words come to mind Relevance, investments and execution. Relevance is, I think, really, really clear. What we offer At the moment, it's what organizations around the world, be those companies or governments, it's what they're looking for to manage Their business and we see that in the new business pipeline, it's extraordinarily strong.
Yes, we have a favorable compare. But if you look at the 2 year performance, it's really, really strong. And that's the key number to look at. We're not persuaded by just the year on year. It needs to be the 2 year performance with an easy compare.
So I think taking advantage of the economy, The strength of investment going into the economy in many places around the world, we're perfectly placed to take advantage of that. I think the second thing is about investment. So in the mid part of last year, when we were The business, we also put new investment back into the business, particularly with capacity, and we're seeing Strong economies we're seeing around the world. So, being able to invest when others worked, I think, is a significant factor. And then the final thing is around execution.
We had a really strong, I think, quarter because of the execution and the grip that we've got on the Sales and service organization. We had a digital launch this year and that meant we got all the quotas deployed very, very quickly. We We've got more selling days into the quarter. We've got a flatter organization now, so there's really clear accountability throughout the business. And we've seen that turning Great results, both in terms of the run rate business, but also particularly strong results in the big deals.
And Mark So the business is really humming. The pipeline is super strong. It's across all clouds. It's across all geographies. There's a real strong focus on industries as well.
The business is really, really pumping.
All right. I really want to ask a follow-up question, Gavin, because you mentioned this, but I think it's important to illuminate this, which is Q1 was very much frictionless. We decided we're going to do digital kickoffs. We're going to get all of these the quotas and the territory sign that's out as Quickly as possible, you've really led this amazing program to do this and to make sure we have this fast start To the Q1 and to the fiscal year, you brought a level of discipline into the sales work I've never seen before. So I never really understood how the British did it.
So, let me just if you just fill in the detail there in terms of the velocity of the distribution organization
Well, I think this is one of the silver clouds that's come out of pandemic is that we couldn't meet face to face, so we had to do everything digitally. But that meant we got out of the blocks really, really It meant that we were able to compress the launch of the year into about a week. It gave us more selling days, made Everybody was clear what they had to achieve. Their goals were deployed earlier in the year. And that meant we're able to focus on our customers.
And And that's the most important thing we do. And when the demand is there, which is the case at the moment, there is undoubtedly demand for our products. The The key is making sure that you are served to your customers and you are there helping them solve their problems.
It's inspiring, Gavin. And I'll tell you, we've had a lot of great distribution leaders in our company and a lot of great people by my side over the last 2 decades who have been running this distribution organization, but you've just done an incredible job. And I just want to congratulate you on not only a great year last year, but now just this amazing And the execution you've done it. Amy, do you want to just come in here and now fill in the details because this velocity that Gavin has given us, well, now you're really paying it out with this new model, aren't you?
So terrific. And Keith, thanks for the question. As you know, very, very pleased to raise from 17.7% up to 18%, so a 30 point This is not a push out. What it really is, it's a combination of a few things. First, it's a great quarter That Gavin just described and having such terrific revenue, this really gives us some additional room to operate this year.
It's also a focus on what we've about how we're working. We learned a lot over the past year. Gavin pointed out having a virtual CKO and kickoff led to different Efficiencies have also led to savings. And then finally, it is a renewed focus on efficiencies and discipline around the company.
Our next question comes from Brent Thill with Jefferies. Your line is open.
Maybe a question for Gavin. The Americas saw an acceleration, but Europe and APAC saw a slight deceleration. And I know that's reported revenue, but I'm just curious if you could talk to what you're seeing outside the U. S. And the recovering, obviously, the lag would make sense there, but what you're
Look, the recovery from the pandemic is not The same stage in every market. I think that's fair to say. But our business is strong. The new business has It's been strong across the board. There might be a point or two difference region by region, but there are no, what I would call, weaknesses Across our global organization.
So, we do see strength across the board, and we see a strong pipeline, importantly, So, I wouldn't read into anything, points difference here or there. I'm very confident that there's growth in the U. S, but also Outside the U. S. And around the world.
And I'll give you a point of evidence on that, which is that Gavin and I brought our top Distribution leaders together in person last week with Brett and we can't bring them all in person. So some of them are just not allowed in the United States. We Just can't get them here. But for the ones that can come in, like Gavin, for example, or others, we've been able to bring in some of our European executives. Wow.
I mean, it was really a position of confidence. It was feeling like there is a Tremendous market that has built over the last year that I think people realize that they must be digital, but they must be digital with our customer. It's not just digital transformation, it's digital customer transformation. That's where the power is I believe in The market, especially right now. And I love that Sonos story because it's a point of evidence on that.
Would you agree?
Yes, Absolutely. The Sonos story is a perfect case study in many ways. And I think it demonstrates the ability for us To help customers transform quickly, I mean, this was a pivot that Sonos needed to make right at the height of the pandemic. We were able to help them transform their business and manage through the pandemic and come A stronger business and closer to their customers and be extremely well placed to continue to grow In the next few quarters.
Our next question comes from Alex Zukin with Wolfe Research. Your line is open. Alex, your line is open.
Hey, Stig, sorry, I was on mute guys. Thanks for taking the question and congrats on a great quarter. Maybe Amy, first for you, you reimagine the operating model and rebuild it from the ground up, as Mark said. Where have you found the lowest hanging fruit from an operational efficiency perspective that You're looking to leverage going forward. And for Mark, you've been through recoveries before, you've been through downturns before.
How strong is the demand right now versus Past recoveries you've seen and your best guess looking on a global basis, how long it lasts?
So thanks for the question. I think the lowest hanging fruit is clearly our difference in how we are working right now. It's this all digital work from anywhere. Probably the easiest part on that is the difference in T and E. That clearly has gone way down.
We are assuming for purposes of guidance, Some modest return to travel in the second half of this year, but it will be nowhere near where we were pre pandemic. We've simply learned how to work effectively and how to
Well, I'll tell you that You're right. I mean, this was the best quarter we've ever had. And I can tell you from bringing these distribution leaders in, I've never seen Pipelines like this or the ability in every market to execute with such robustness. And I think that CEOs and I'll tell you from my own, obviously, we invested last year. We didn't pull back.
We knew we had to go for it and we had to go all out. And it's counterintuitive. The world is ending and you have to say, well, you got to go all out and realize that the world is not It's going to be ending in a year from now and it's hard when you're in it because people start to panic. It's a normal human reaction. I mean, we've been at executives in Salesforce Came in and said, oh, we've got to cut.
We've got to do this. We have to do that. We reshaped. There's no question. We did some slight reshaping, but we didn't do any massive layoffs or anything That of any consequence that I would say, oh, we really tried to cut dramatically in some area or whatever.
It was like, no, we need to reshape to Grow. We need to invest to grow. We need to do the things that we need to do as a company. And that's a year ago. So a year ago, it was Decision based on experience, that is we have seen it, whether it was the recession of 2,001 or the financial disasters of 2,008, those are just moments.
They're moments in time. But in the history of the company or if you look at the history of the equity from 2,000 Or when we went public, you got to keep going. And that moment is the time to go because in many cases, your competitors are pulling back because they're afraid. And when your competitors are afraid, that's when you need to invest and that's where you really need to grow. And I'll tell you, I think that that's what Gavin did.
That Gavin came in and he reshaped. He took out some costs. He advanced certain areas. He rebalanced his org And was able to provide greater market coverage and expanding his capacity capability and I think at levels I haven't seen in a long time. So do you want to Bill, in the detail?
Well, in many ways, I think you've made the point very well there, Mark. I mean, it was at the Probably the most difficult point in the last 12 months, where everybody else was making cuts, we reshaped the business and created more capacity, knowing that The demand would come back, and it takes a few months for new capacity to come online and become productive. But what that Decision allowed us to do was enter the year with a really strong market coverage, Up significantly year on year. And I think it's helped us get off to a really strong start and Take advantage of the demand that is undoubtedly there for the Customer 360.
Well, I'll tell you, I think to Add to that, I mean, you look at what Brett has done this year. I mean, Brett really led and executed this amazing reshaping plan. He rebuilt the kind of Company overall really looking at where are we balancing our resource and also architecting our Slack acquisition. Brad was at the tip of the spear, on both of those, making sure that we're prepared for the future with The business plan and the reshaping plan that we needed and the technology plan and the technology vision. Then Amy came in and she said, no, we're going to go rebuild The fundamental financial plan as well and we're going to couple that financial plan from the bottom up and build a new revenue plan and a new Cash flow and margin plan and you see that now.
And then we had Gavin come in and say this is how we're going to rebuild the distribution organization. And I think these three tiers all coming together really are what you see today. And when you look at these numbers, when you look at A company that's going to do now over $26,000,000,000 in revenue this year. Look, there's only been a couple of enterprise software companies in history who've done that. You know that.
And this is a big moment for us $26,000,000,000 But you know because you have your models and you have your spreadsheets and you have your formulas and See our growth rates, you can start to project out and see where we're going. Not only this year or next year, but as we're projecting out Next question.
Ladies and gentlemen, we have reached the end of the allotted time for questions and answers. I will turn the call back over to Evan Goldstein for closing remarks.
Thank you for joining us on the call today. If you have any follow-up questions, please email us at investor salesforce.com. Look forward to speaking with you next quarter. Thank you and see you
at Dreamforce everyone. Bye bye.
This concludes today's conference call. Thank you for participating. You may now disconnect.