Good day, ladies and gentlemen, and thank you for standing by. Welcome to Salesforce Science definitive agreement to acquire Tablu. At this time, all participants are in a listen only mode. Later, we will host a question and answer session and our instructions will be given at that time. As a reminder, this conference call is being recorded for replay purposes.
It is now my pleasure to hand the conference over to John Cummings, Senior Vice President of Investor Relations. Sir, you may begin.
Thanks, Brian, and good morning, everyone. Earlier today, Salesforce announced it has entered into an agreement to acquire Tableau, the number one analytics platform. The details of this transaction can be found in a press release issued at approximately 7 am Eastern Time today along with an 8 ks filed with the SEC. Joining me today to discuss the transaction is Marc Benioff, Chairman and Co CEO of Salesforce Adam Selipsky, CEO of Tableau Pat Taylor, President and Chief Product Officer of Salesforce and Mark Hawkins, President and Chief Financial Officer of Salesforce. The purpose of today's call is to discuss the acquisition of Tableau.
Mark, Adam and Mark will review the proposed acquisition and the terms of the transaction. After our prepared remarks, we will turn the call over to your questions. You should be aware that our discussion and responses to your questions may contain forward looking statements related to sales force, Tableau and the acquisition of Tableau that involve substantial risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements. All statements other than historical facts included in our discussion, including but not limited to statements regarding the timing and closing of the transaction, the potential benefits and financial impact of the transaction, sales forces and Tableau's plans, objectives, expectations and intentions, the financial condition, results of operations and business of Salesforce and Tableau and any assumptions underlying any of the foregoing are forward looking statements. Should any of these risks or uncertainties materialize or should our assumptions prove to be incorrect, actual company results and actual effects of the transaction could differ materially from these forward looking statements.
A discussion of risks, uncertainties and assumptions related to the acquisition and the estimated impact to Salesforce and Tableau as well as other information on potential risk factors that could affect our financial results are included in reports filed by Salesforce and Tableau with the FDA reports on Form 8 ks, 10 Q and 10 ks, particularly under the headings Risk Factors and the tender offer statement on Schedule TO, registration statement on Form S-four and other offer documents to be filed by Salesforce as well as the solicitation recommendation statement on Schedule 14D to be filed by Tableau. Please be aware that any unreleased services or features referenced in today's discussion or other public statements are not yet available and may not be delivered on time or at all. Customers who purchase our services should make these decisions based on features that are currently available. Finally, the intended acquisition of Tableau includes an exchange offer made by Salesforce and a subsidiary. The exchange offer has not yet commenced.
The discussion regarding the acquisition is for informational purposes only and is neither an offer to purchase nor solicitation of an offer to sell any securities nor is it a substitute for any offer materials that Salesforce and its acquisition subsidiary will file with the SEC. When the tender offer commences, Salesforce will file a tender offer statement on Schedule TO with the SEC. Sales force will file a registration statement on Form S-four with the SEC and Tableau will file a solicitation recommendation statement on Schedule 14D-nine with the SEC with respect to the exchange offer. The exchange offer materials and the solicitation recommendation statement will contain important information. Tableau's stockholders and other investors are urged to read these documents when they become available as they will contain important information that holders of Tableau's securities should consider before making any decision regarding exchanging their securities.
The offer to exchange, the related letter of transmittal and certain other exchange offer documents, as well as the solicitation recommendation statement will be made available to all holders of Tableau stock at no expense to them. They will also be made available for free at the SEC's website at www.sec.gov. Copies of the documents filed with the SEC by Salesforce will be available free of charge on the SEC filings section of the Investor Information section of Salesforce's website at www.salesforce.com/investor or by contacting Salesforce's Investor Relations department at investorsalesforce.com. Copies of documents filed with the SEC by Tableau will be available free of charge on the Investors section of Tableau's website at www.investors. Tableau.com or by contacting Tableau's Investor Relations department at irtablot.com.
In addition, Salesforce and Tableau file annually, quarterly and current reports and other information with the SEC. You may read and copy any reports or other information filed by Salesforce and Tableau at the SEC Public Reference Room in Washington, D. C. Please call the SEC at 1-eight hundred-seven thirty two-three thirty for further information on the public reference room. Salesforce and Tableau's filings with the SEC are also available to the public from commercial document retrieval services and at the website maintained by the SEC at www.sec.gov.
So with all of that, let me turn things over to you, Mark.
Okay. Well, thank you so much, John, and thank you everyone for being on the call this morning. And I could not be more excited about our acquisition of Tableau. We are bringing together the world's number one CRM with the number one analytics platform and the combination is truly the best of both worlds. Tableau is just a phenomenal company, one that I have always very deeply admired.
Its sole mission is to help people see and understand data. And those few powerful words, those seven words, well, that drives everything they do at Tableau. And the company has done extraordinarily well with that, becoming the number one analytics platform that's loved by its customers, it's loved by its partners, it's loved by its employees and it's especially loved by its incredible thriving community. Tableau reminds me so much of Salesforce and I've always connected with their mission because I see our mission as helping companies engage with understand their customers and with our intelligent Customer 360, which is surrounded by our own thriving ecosystem of customers, partners, employees and our own rapidly growing trailblazer community. Well, we connect companies with their customers in a whole new way.
For 16 years, Tableau has been transforming the way people use data to solve problems. It's analytics for every business user, delivering powerful and insightful visualizations and business intelligence across all types of data regardless of where it lives across all types of use cases in large and small organizations for all people regardless of their skill level. I've been especially impressed that more than 86,000 organizations around the world such as Charles Schwab, Verizon, Schneider Electric and Southwest Airlines rely on Tableau to help them see and understand their data. Oh, and by the way, those are all great Salesforce customers too, you probably know that. Well, that really got my attention.
I speak to so many customers all around the world and I'll tell you what, they all love Tableau. Another remarkable point of similarity is the sales force community, which consists of more than 1,000,000 data enthusiasts. They're incredibly passionate about the company and telling stories with data. If you've seen public. Cabo.com, this incredible website they have with all these amazing business and their whole community of users and developers.
It's just amazing. You probably already know the amazing depth of the community and the platform. I think it's really unique in our whole industry. I've really never seen anything quite like it. And it has continually impressed me with its tremendous innovation.
Combined with Salesforce's community of 1,400,000 trailblazers all over the world who are transforming their businesses and their careers with Salesforce. Well, we'll have the largest community of digital business experts in the world. That is so cool. Millions of people transforming their companies, their careers, their world and their data. IDC expects that digital transformation will reach $1,800,000,000,000 as a market by 2022.
And we have already seen firsthand that data and customers are at the heart of every digital transformation. We've seen how data is the key to making Einstein's incredible AI capabilities possible, bringing AI to everyone through the Salesforce platform. And now Tableau and Einstein bring together 2 pivotal platforms that every customer needs to understand their world. If you think about it and you talk to customers, they continue to reiterate that they're on this path of amazing digital transformation. And as they do that, they are going deeper and deeper into their ability to fully digitize their whole companies, their ecosystems, their customer relationships, all their data.
And when they think about it, they really articulate that there's 3 cornerstones, 3 cornerstones of digital transformation. Now of course, from Salesforce's perspective, it's always been about the customer that every digital transformation begins and ends with the customer. That's number 1. And then we've got to hook all that data up together and that's why over a year ago we acquired MuleSoft Soft because they're the number one integration platform. So we thought that was a great idea.
But at the end of the day, customers want to see and understand data. And that's why Tableau is so powerful because they're the number one in that area. And putting those three things together, customer, integration and data, well, that is where the magic really starts to happen. It's really this simple. Tableau is all about people seeing and understanding their data, servicing actionable insights for every business user.
And Salesforce is all about helping people engage with and understand customers, delivering connected, integrated, intelligent customer experiences across every business process. And now together, we have the leading products in these most important categories underlying digital transformation, the very cornerstones of digital transformation. In 2020, the world will generate 50 times the amount of data it did in 2011. Tapping into this massive data flow creates huge opportunities for economic and human advancement. To turn these opportunities into reality, well, people need this information available all the time, everywhere.
They need the power of data to innovate faster, to drive intelligent, connected customer experiences.
They need to build
a see and understand data in a whole new way. And that is what we'll provide with this great combination of Salesforce and Tableau. We have a tremendous vision for the next decade with Customer 360 and Einstein and MuleSoft, giving our customers a unified, intelligent, 360 degree view of their customers across every touch point, sales and service and marketing and commerce and communities and more. But now with Einstein, we have pioneered AI for CRM, making it easy to generate predictions and recommendations with just a few clicks. We have AI powered analytics for sales and marketing.
And now with Tableau and Einstein together, Salesforce delivers the most intelligent and intuitive analytics and visualization platform for every department and for every user at any company. The combined value that Tableau and Einstein together is extraordinary, and we'll be able to deliver even more value as a combined company, as a combined community and we're also culturally aligned in our values with a relentless focus on customer success, a relentless focus on innovation and a relentless focus on giving back. Let me close by saying that I'm just thrilled that we'll be able to help Tableau accelerate its mission to help people see and understand data, those powerful seven words, there they are again. Tableau will operate independently as part of Salesforce, led by Adam and his fantastic team. This combination will accelerate Salesforce's mission as well.
Tableau will make both Customer 360 and Einstein stronger than ever and enable us to reach a much broader set of customers and users. I'm also excited to expand our presence in the Seattle area,
where Tableau is based.
Did you know that Salesforce already has more than 1,000 employees in Seattle and Bellevue area? And now we're looking forward to join with Tableau to expand our presence there. With Tableau, Seattle will become our 2nd headquarters of sales force. It's going to be our HQ2, if you will. So let me welcome the Tableau family to the Salesforce family.
And finally, I'm here at Salesforce Tower in New York City, credible Salesforce Tower in New York City to celebrate the opening of our Ohana floor tonight. I hope that you're going to be able to join us to celebrate this opening. It's going to be amazing from 6 to 9 p. M. I'll tell you, I'm looking out at the windows and the views right now and the view is as gorgeous as a Tableau Visi.
So look, I want to just thank everyone who's participated in this. It's been an incredible partnership coming together with Adam. I'm so grateful to him. And now let me turn this over to Adam.
Thanks so much, Mark. Today marks a momentous day for Tableau customers, for our partners and our employees. Tableau's mission is to help people see and understand data. And with our end to end analytics platform, customers can drive impactful data driven decisions from the massive amounts of data being unlocked in their digital transformation. Over the last few years, we've achieved major milestones in our company history from delivering on one of the fastest subscription transitions in software history to our rapidly growing enterprise business.
But we're just getting started and with the incredible opportunity today to join forces with Salesforce, this is going to dramatically accelerate our mission of helping people see and understand data. What will not change as we move forward with Salesforce is our steadfast commitment to giving all of our customers unparalleled choice and flexibility in how they choose to connect to their data and how they deploy Tableau whether on premises, multiple public clouds or fully hosted analytics solutions. As for Salesforce's customers, the combination of Salesforce's customer success platform and Tableau's best in class analytics will help supercharge the digital transformation of millions of trailblazers the potential to enable sales force customers to surface deeper insights to drive their business forward faster. For example, what if customers can get a 3 60 degree view of their business, their customers, their suppliers by combining all their data in the cloud and on premises? What if we could empower developers leveraging Salesforce's platform to embed Tableau's powerful analytics and their solutions across multiple industries and use cases.
We are also excited to explore ways to augment Tableau's analytics platform with Salesforce's Einstein capabilities in AI, voice and AutoML, which will accelerate our ability to help all customers deliver predictive and prescriptive analytics for their data driven businesses. And personally speaking, I can't wait to welcome so many new trailblazers to our passionate and unique Tableau community of data geeks. Lastly, as I've gotten to know Mark, Keith and the rest of the sales force management our passion in serving customers, our desire to constantly push our innovation agendas forward and our ongoing dedication to giving back to our local and global communities. Before I turn the call over, I'd also like to take this moment to thank each and every one of our employees and their brilliant hard work in getting us to where we are today. Thank you, team Tableau.
And a big thank you as well to our Tableau community for their incredible enthusiasm and support. We would not be Tableau without you. With that, let me turn the call over to Mark.
Well, thanks, Adam. And as the team outlined, this is a highly strategic transaction and will allow us to more deeply address the fastest growing analytics space by playing an even greater role in our customers' digital transformation. Let me discuss the transaction details. Salesforce and Tableau have entered into a definitive agreement under which Salesforce will acquire Tableau in an all stock transaction pursuant to the with each of the shares of Tableau Class A and Class B common stock and they will be exchanged for 1.103 shares of Salesforce common stock, representing an enterprise value of $15,700,000,000
based on
a trailing 3 day volume weighted average price of Salesforce's shares as of June 7, 2019. The transaction has been approved by the Boards of Directors of both companies. Under the terms of the transaction, Salesforce will commence an exchange offer to acquire all the outstanding shares of Tableau. The acquisition of Tableau is expected to be completed during Salesforce's fiscal Q3 ending October 31, 2019. This is subject to the customary closing conditions, including the tender by Tableau's stockholders of shares representing the majority of the Tableau common stock voting power on a one vote per share basis and the receipt of regulatory approvals.
Christian Chabot, Patrick Hanrahan and Christopher Stolte, the founders of Tableau, have all entered into an agreement with Salesforce in connection with the transaction and have indicated that they intend to tender all of their shares in exchange for the offer. Turning to guidance. Assuming that Tableau transaction closes on or about October 1, 2019, we estimate Tableau will contribute approximately $350,000,000 to $400,000,000 in incremental revenue for the remainder of our fiscal 2020. This estimate reflects a fair value adjustment to reduce unearned revenue and unbilled unearned revenue, which is off the balance sheet by approximately 30%. The estimate also includes a provision for a modest level of business disruption in the weeks after the acquisition closes as well as other adjustments.
In that context, we now expect to deliver revenue of $16,450,000,000 to $16,650,000,000 for 24% to 25% growth year over year. We remain on track to organically deliver $26,000,000,000 to $28,000,000,000 in FY2023. We expect that Tableau will be additive in the long term and we'll provide updates at our Investor Day this year when we have a better visibility of the closing of Tableau transaction as we integrate this into the model of our long range plan. We expect this transaction to reduce our year over year FY 2020 non GAAP operating margins by approximately 75 basis points. Keep in mind this estimate includes the one time non cash accounting charge related to the acquisition of salesforce.org as well as the unearned revenue write down and the related transaction integration costs associated with both transactions.
Nevertheless, we will continue to drive improvement to our organic non GAAP operating margin consistent with the goals we established at the onset of FY 2020. As a result, we now expect FY 2020 non GAAP diluted EPS of $2.51 to $2.53 This estimate assumes fully diluted share count of approximately 900,000,000 shares and a non GAAP tax rate of 22 0.5%. Keep in mind, our guidance may change as we finalize purchase accounting following the close of the transaction. Also as a reminder, our EPS guidance assumes no future contribution from mark to market accounting as required by ASU 20 sixteen-one. Turning to cash flow.
We estimate that the acquisition of Tableau will slightly increase our operating cash flow net of acquisition related expenses. And as a result, we now expect FY 2020 year over year operating cash flow growth for the combined company in the range of 21% to 22%. To close, I am delighted by the opportunity to drive even greater levels of customer success and innovation along with Tableau, which we believe in turn creates long term shareholder success. I am excited to welcome everyone at Tableau to our Ohana. I'd like to thank our employees, our customers, our partners and our shareholders for your continued support.
We look forward to updating you on this transaction. With that, we'll open up the call for questions.
Thank you, sir. And our first question will come from the line of Jennifer Lowe with UBS. Your line is now open.
Great. Thanks and congrats on the deal. The first question I had just is a lot of Tableau has gone through the subscription model transition, but a lot of that business is still on premise. Can you give us any color of how much of Tableau's business at this point is truly running in the cloud versus subscription on prem? And how should we expect that would look under Salesforce's ownership given Salesforce's strong history as an advocate for the cloud?
So well, I guess one of the things I'll just start and I'll let Mark finish. But one of the things that is really attracted to Tableau is kind of their approach to the cloud. And of course, Salesforce has its own approach to the cloud, which has been very powerful. And we've actually learned a lot by working with Tableau and talking to them during this time of how we're coming together. Tableau offers their customers tremendous flexibility.
That is it gives you the ability as a customer to decide, do you want to consume it like Salesforce as a fast product because they certainly have that as a subscription service directly off the net easy with Tableau supplying the infrastructure. Then Tableau has this incredible capability. Well, you can also run it on any major cloud service like AWS or like Google, that's easy to host as well. And then 3, you may decide that because of the way that you've architected your data or your repository and the way you want to architect business intelligence or analytics or visualizations, you want to do that on premise, Tableau gives you that flexibility as well. That is really powerful.
And I'll tell you, it was kind of a surprise to me because coming in, I knew Adam from AWS. He was with Amazon for more than a decade and as a pioneer, but he really convinced me that his vision of having kind of a multiple deployment capability for this specific technology is very powerful. And by the way, we also have that with MuleSoft as well. So this was really a leap for us and it really helped me to get even more excited about Tableau. And I'd love for Adam to comment on that and maybe Mark wants to fill this in as well.
Sure. Thanks, Mark. So all three of those deployment models that Mark just talked about are very important to our customers. We're very committed to that customer flexibility and choice. We still do have a number of customers who want to deploy on their on premises for lots of different reasons.
At this point, over a third of our server deployments are happening in the public cloud across all of those clouds that Mark referenced. And we also have over 10,000 Tableau Online customers that are fully managed SaaS offering. So all three models are alive and well and very robust.
Thank you. And our next question will come from the line of Brad Zelnick with Credit Suisse. Your line is now open.
Excellent. Thank you so much and I echo my congratulations on the exciting news. For Marc Benioff, Marc, I think we know from past disclosure, Tableau is a company that's been on your interest list for some time now. What are the 1 or 2 most important benefits you get in owning the business versus a partnership? And why now with the stock at near all time highs?
Thanks.
Well, thanks so much. You're absolutely right. I've always been a major admirer of Tableau and this company is really just a jewel in our industry, from whether it's really the perspective of the technology itself, the culture of the company and the leadership team is incredible and also the community. I mean, from my perspective, those are really kind of the 3 incredible jewels of Tableau that are getting polished and that we really have the ability to do something incredible together. And I think that we've tried to do something for a long time and it's just hard to get the stars to align.
And I think that we were fortunate that we got there. Our customers are looking to do a lot more in this area. There's a huge pace of digital transformation going on today. I mentioned that in my script when I talked about the three cornerstones of digital transformation, the customer, integration and data. And when I talk to some of our largest customers, I have to be completely try to tell you exactly what they say to me.
We're talking about Salesforce, we're talking about all the different products. They're using Sales Cloud and Service Cloud and Marketing Cloud, and they're using all of our various capabilities. And then they'll start talking about how they're using Tableau. And then just in my mind, I'm like, wow, if this was more deeply integrated as one motion, we could be satisfied a much bigger customer need. And that's ultimately what we want.
We want to be able to come into the customer and have a completely strategic product line. You'll see on my Twitter feed that I put together a graphic that includes kind of our vision of Customer 360 and how Tableau fits within that and also kind of our core platform. And those two things together are quite unique in the industry. I don't think anybody is really trying to do this. And for our customers, this is badly needed.
They really want it. And I'm so excited that we are able to put this together. And then the last thing I'll just say is, I am a huge admirer of the talent market in Seattle. There's very few places in the world today where you can put together a software company at scale. And we know that because we're all over the world, we're throughout the United States and we can see various levels of talent available in different markets.
Seattle is really unique market and has just tremendous, tremendous talent. And so we just easily grew 1,000 people there. Then when I was like, wow, Tableau, not only do you get this incredible customer capability, but our ability to make this geography a strategic part of Salesforce, that is something I requested for a long time. So it's those two things together. Adam, do you want to add anything?
No, I think that that's very well said. I mean, I think there's all sorts of potential for just the great things we can do together. If you look at the product side, that's tremendously interesting to us in terms of being able to look at all the leading edge technologies that Salesforce has developed over the years and just the potential of what we might do with those is amazing. Salesforce is dramatically impressive and large field presence around the world, something that we look forward cooperating with deeply. And it's just a great match between 2 companies, between the cultures.
We're very similar in the values that we share and that's tremendously important to all the employees at Tableau and that's going to be important to the employees at Salesforce too. So it's just a great match from a lot of different dimensions.
Thank you. And our next question will come from the line of Kash Rangan with Bank of America. Your line is now open. Kash, your line is now open. Please check your mute button.
Hi. Thank you very much. My apologies. Congratulations, Mark and the Tableau team on this transaction. Mark, you've got a tremendous track record with your acquisitions.
You had ExactTarget, demand where and then MuleSoft most recently. I'm wondering if there's any parallels, if you could look at this through the lens of Salesforce, what are the synergies for Tableau under Salesforce? Is it similar to the MuleSoft transaction where there's this huge appetite for integration inside the installed base, we could just blow up that business, not to put words in your mouth, but how do we think of this in the context of Microsoft trying to be more competitive in this market because they obviously see the opportunities here like you do, but how should we think about the synergies for sales force with Tableau being part of the fold? And congrats again.
Well, I think I really think about the synergies as very powerfully anchored around the customer. I mean, you know, Kash, that I'm constantly on the road with customers all over the world, CEOs, CIOs. I mean, I've met with 100 of them in the last just few months, probably 1,000 of them this year alone. And when I'm talking to those customers, they are really looking for me to help architect for them and I would say a complete digital transformation of their business and try to bring as many critical capabilities as necessary to achieve that. That's how so many of the advancements that we brought to the market have come through customer demand and motivation.
Even like you could see a couple of weeks ago, we launched Blockchain, which is now a deeply integrated part of the Salesforce platform, Einstein, our Einstein Voice, Einstein Vision. There's so many capabilities that Salesforce is able to bring to bear, to the customer. And one area that I feel like we have need to go even more deeply in is the areas that Tableau is in, the areas of data, all aspects of data, data governance and data catalogs, business intelligence, the power of visualization, the power of easily building complex visualizations. And I'll tell you, Kash, that you and I have always admired ease of use for a long time and how it's come to enterprise software. If you look at public.tableau.com and look at some of these incredible applications or they call them Visis, their visualizations built by their community.
I honestly think it's some of the most innovative work I've ever seen, not just in data or visualization in our industry. And I spent a lot of time actually on that site public.tableau.com even before we considered acquiring the company because I've been so inspired. I even find things that motivate my philanthropy. You'll see stuff on Ocean's, you'll see stuff on DNA, you'll see stuff, of course, on business intelligence, on Salesforce, all kinds of things. And that's where I'm like, wow, if we could really bring this into what Salesforce is doing, it would really take our community to a new level, give them the ability to execute this type of capability.
But ultimately, it gets back to we are really all about this concept of digitally transforming our customers. And when I think about those three cornerstones of digital transformation, I'm really trying to invest heavily in those three areas. In the customer, I think we've got the best solution in the market, in integration, again, I think we're number 1, and now with data. And as part of data, I'll say intelligence because data and intelligence are tightly linked together, business intelligence and artificial intelligence. And if you can bring all of that together to a customer, you can really do some incredible things for them and I think become a more strategic supplier to them than ever before.
And that's who Salesforce has really become. We're really becoming the leading supplier of digital transformation for the world's largest and most important customers and really for with Tableau all customers.
Thank you. And our next question will come from the line of Ramiro Lencho with Barclays. Your line is now open.
Hey, congrats from me as well. Question on the overlap, can you talk a little bit about what you're seeing in terms of Tableau customer Tableau and Wave customers? And in terms of how many accounts are you overlapping? And then also like how do you see the product evolving around those 2 because obviously you kind of were in the same market to some degree? Thank you.
Well, I'll kind of tap that and then I'll ask Brett Taylor to also give us his perspective. We obviously have gotten definitely our feet wet and gotten really excited about what potential is, especially in sales analytics. That is not just offering our customers reports and dashboards with CRM, which is something that we've done for 20 years. I guess, we've delivered millions of reports and dashboards for customers. And then we've also extended that with our own, as you said, kind of wave analytics and the ability to have that capability as well has been tremendously successful for our sales analytics customers.
But our focus has mostly been on our product, and it's mostly been on really amplifying some of those core capabilities and giving our customers unique insights into those core data sets. The way I look at Tableau is they have a bigger mission. Their mission is to help the world to see and understand data. It's a bigger idea. If you go to that public.
Tableau site, their visualizations, what they're able to do and how they see it, highly complementary to what we're doing and it also touches everything in the world. And that again, I think is what's so exciting to me. Brett, would you like to comment on that?
Yes. I think that's exactly right, Mark. We're incredibly proud of the impact we've had with Einstein Analytics on sales and service and market analytics with Datorama. And now with Tableau, we're really expanding it to enable analytics and intelligence and data literacy for every department and every user at every company. The way I think about it is very similar to the way we thought about MuleSoft.
In MuleSoft, you could unlock the data at your company and have a strategic integration platform that can really enable you to transform your customer experience faster. And now at Tableau, we can go to every single department and every single user, enable them to help see and understand data, which is Tableau's mission. And you combine that with the Customer 360 platform, and these customers can do their digital transformation, which starts and ends with the customer faster and enable everyone participating in that transformation to be literate in data. And we think that's a really, really powerful value proposition. And we think expanding beyond our clouds have this really broad data visualization and comprehension capability that goes to every single employee.
We think that's a really, really strategic place to enter into these customer conversations.
Brett, can I just ask you how obviously, you've got just tremendous work now with Einstein, the Einstein vision capability just demonstrated at TrailheadX, Einstein Voice, which is getting deployed now to all of our customers as well as the kind of the deep learning and machine learning capabilities of Einstein, how is the how do you see that, that is going to augment this vision of what you want to do with Tableau?
The thing that I think we've been really hearing from our customers is just how powerful this platform has become over the years. We've got mobile. We've got the best artificial intelligence platform at Einstein. We've got vision. We've got voice.
We've got security, we've got low code builders so that any member of our trailblazer community can build these applications easily with clicks, not code. We got connections to the Internet of Things and now at Trailhead DX, we had blockchain. Now with this acquisition of Tableau, that entire community, that 1,000,000 plus strong trailblazer community, will join together with the incredible Tableau community that you referenced on publictableau.com. And they're going to have now this capability to build these incredible visualizations and empower every single member of their organization to be empowered to see and understand data. We think that combination is incredibly unique.
And I think the key differentiator in this is these communities. It's something I think is really a defining and differentiating characteristic of both companies. And I think I'm really excited to see what happens when those communities come together and they're empowered to use this entire portfolio of technologies to transform the customer experience.
Well, Brett, I really agree with you and I'll tell you, it reminds me just 2 weeks ago, I was with a customer in Minneapolis, a fairly large customer of ours and we were talking about some of their agriculture products and things that they were doing and helping to make farmers more successful, but also giving consumers visibility into their supply chains. And it was really powerful for me to be in the meeting because for the first time, I was able to talk about that they were going to build that food traceability from consumer to farmer using blockchain and they were tapping into voice based user interfaces and they, of course, had IoT built into the platform and they were using our new vision capability in the retail environment, as well as building these amazing applications with some of these new tools you just deployed. And I'll tell you the cool thing was, was the heavy use of AI in the application as well as some of your new security and mobile features that you just released at Trailhead. But at the end of the meeting, they turned to me and they said, yes, and they started to paint this vision and then they said, and now we're going to build this incredible Tableau interface on top of all of it and really help us to see and understand the whole ecosystem that we're building.
And I just was saying to myself, wow, this just comes together and fits so well.
Thank you very much. Our next question will come from the line of Sarah Hindslin with Macquarie. Your line is now open.
Hi, good morning. Thank you so much for taking my question. One of the things I'd love to dig into is a little bit more in particular about how your go to market is going to evolve around this product. Certainly, I could see the front office use cases, but how are you thinking about continuing to move Tableau into back office? And then I'd like a follow-up also for Mark.
Just in terms of operating margin expansion, 75 basis points of headwind on fiscal year 2020. What is your ongoing commitment to deliver on non GAAP operating margin expansion?
Vision of go to market for the platform. And I think the vision of go to market for the platform. And I think that Brad actually kind of hit this really well, which is if you see how Tableau is used and of course I've mentioned this public site quite a few times now and encouraging all of you to go there to really understand Tableau by going to public. Tableau.com. That gives you so many great examples.
You can see it's such a broad product that you can really do so much with its capability. When they say that their mission is to help people see and understand data, not limited to one type of person or one type of company or one type of geography or what type of industry. I mean, the proof is in the pudding. You can see on that website the broad brush that it has and we want to continue to amplify that and expand that and give them that ability to do as much as they want. We want to accelerate their mission.
This is very important to me personally. I'm such a big believer in them and what they've done. And then I'll turn this over to Mark, but I'll just tell you from the CEO perspective, we're very deeply committed to expanding our operating margin. And as evidence of that, you can just look at that over the arc of the last 20 years. In fact, in our last public results, I think it actually just hit a new high.
And our goal is to do exactly that, is to continue to incrementally improve our operating margin, while we are creating the fastest, I think, one of the very fastest growing enterprise software companies of all time. And I think you can all see now, and we have a lot of strong financial analysts on the call with us, how we are going to take these 2 companies and we are really fast tracking to create a company that will be a $30,000,000,000 powerhouse in enterprise software. It's very exciting.
Let me just add to that, Mark. Thank you and thank you, Sarah, for the question. Absolutely, we have the commitment to continuing to expand our non GAAP operating margin improvement. As Mark said, if you just look at the vector over the last 5 years, we've just persistently moved forward. We're really obviously focused even as we speak on driving our organic operating efficiencies even today.
Obviously, we're taking on over the course of this transaction in dotorg, dollars 200,000,000 non cash accounting charge, one time, Doctor write downs and both build and unbilled, transaction cost, integration cost. But operationally, we're unwavering in our focus to drive efficiencies in the business and is exactly as Mark talked. So thank you for asking that. You should expect that from us.
And Mark, you do have to just comment that in our last quarter results, you just hit some new numbers there that were just
extremely exciting. Yes. We were we try to always kind of modestly look at that and make our progress. I personally felt very good about that because of the progress we met. When we hit that level of operating margin, it shows the persistence
we have been. And you also hit some amazing new records with cash flow.
Cash flow regrew our cash flow 34% year on year. So you can see the persistence on the cash flow, the cash conversion cycle. You can see the persistence on expanding our core organic operating margin capability and you can see the quality of our balance sheet and the strength of our company. So, we're very pleased to do this and we're obviously focused on the future. And as Sarah is asking about, continuous improvement.
Thank you.
Thank you. And our next question will come from the line of Walter Pritchard with Citi. Your line is now
open. Hi. A question for Mark or maybe for Brett. Just in terms of thoughts generally getting into new markets and organic development versus M and A, I mean, it feels like there are a lot of assets given what we've seen in software over the last 5 years, lots of new companies and so forth. How aggressively should we expect you to fill out your vision over time with M and A versus organic development?
It seems like this deal may represent a change there.
Well, it really doesn't represent a change to be honest with you. We're excited to be able to get a deal done when we can get a deal done. I think in this environment, you'd be surprised and I got some messages from some friends of mine this morning. And I don't think that they realized that actually getting finding 2 companies that can come together like this is actually kind of a miracle. I mean, I'd like Adam to kind of mention that, talk about that in a second.
But it's about really finding people who can work together, cultures that will come together, products that work together, common customer bases, brand values. It's a miracle when you can make all of it happen. Sometimes you're kind of baking it within the company like that's an example of MuleSoft honestly. I love MuleSoft from the beginning. We are venture capitalists in MuleSoft.
We kind of we were cheering them on and helping align with them and bringing them to our customers and showing them what to not I wouldn't just say showing them what to do, but kind of guiding them along. And so it was a natural acquisition for us. They were already part of our sales force family. In this case, this is kind of Tableau, I would say, is kind of a brother from another mother, which is it's an incredible company that's so similar to who we are. Anyway, Adam, would
you just talk about that?
Yes. I think we very quickly felt the same sentiment. I mean, the first thing I think you look for and trying to find that miracle that Mark referenced is, is there a common vision? Are you trying to get to the same place? And for both companies, we really anchor that completely around the customer.
We talk about being relentlessly customer focused. Mark and his team talk about customer success at the heart of what they do. And it would be very hard for us to have this kind of partner who didn't look at the world through that same lens. So there are those really philosophical attributes which are incredibly important. And then as we got deeper into it, I think the shared cultural elements and the shared values became incredibly important because neither company is going to do much for their customers without this great hardworking smart group of employees that's ever growing.
And in order to have that, we really have to have values that resonate with those employee bases and cultures, which feel positive and feel like they matter. And the cultural similarities are amazing. As I mentioned earlier, just the focus on customers, but also the focus on having empowered employees who are learning and are challenged and growing. And then of course giving back to the communities. We've had our Tableau Foundation for years and are trying to do things like eliminate malaria in Africa.
Salesforce, I think their record in terms of giving back to their communities and showing corporate leadership in many different areas of that is unparalleled. And things like that really gave us confidence that we were thinking the same way and could head to the same great places together.
Thank you. And our last question will come from the line of Keith Bachman with Bank of Montreal. Your line is now open.
Hi, thank you very much for taking the question. Mark Benioff, I'd like to direct this to you if I could, at 2 different levels on the proposed transaction this morning. One of Tableau's primary value propositions is not only the visualization and surfacing data, but also drawing data from a variety of different sources. So really empowering data and environments from SAP, from Oracle, from IBM. And so how do you think about the strategic fit with the idea that Tableau is certainly chartered to help a broad ecosystem, in other words, much more than the sales force installed base?
And then the second part of the question, as you think about the customer, the specific customer within large organizations, I think who buys Tableau is very different from the person that buys Salesforce. And so if you could just speak to those key elements of strategy, but certainly 1st and foremost is Tableau is a multi platform ecosystem. So how does that line up with the longer term goals of Salesforce? Thanks very much.
Well, thanks for that question. And I guess if we were on the call a year ago with MuleSoft and we look back at the script, I'm thinking we have the exact same question. There's a question of, well, gee, MuleSoft really is all about connecting to an ecosystem of data and connects to lots of different data sources like SAP and Microsoft and Amazon and Google and Workday and ServiceNow and so many companies and how do you plan to address that. And it was kind of a shock to me actually, because when I had the question, it was kind of like somehow people think that we wouldn't connect to those companies or wouldn't that we would do something to cut them off. And I think that maybe that's because in the past, the way some of the traditional enterprise software companies have behaved have been so kind of draconian in their own practices.
Even today, some of those kind of older companies started in the 70s, they kind of operate in this kind of strange behavior. But anyone who has seen how we've acted with MuleSoft, of course, we always maintain a beginner's mind. It's kind of a core part of who we are. And we have not only maintained and enhanced the ecosystem that MuleSoft connects to, but we've added to it and we've done some incredibly innovative work to make sure that MuleSoft connects the world. By the way, MuleSoft coming together with Tableau, that's just a beautiful thing.
I mean, Tableau will have access to all that data as well as those technologies come together. MuleSoft is such a powerful, powerful kind of octopus, if you will. It's got its tentacles and everything and then the ability then to kind of see and understand all of the things that are going on in MuleSoft, well, I can't wait to see what Tableau can do there. In regards to the buyer, well, I guess that you could make a case that there is a data analyst or a visualization expert or a business intelligence expert and that those are the buyers and companies. And certainly, those are people that we speak to on a regular basis.
You could say that they're discrete. Well, we're planning to continue fully and enhance and invest in Tableau's existing go to market capabilities. I mean, we're going to plan to put that thing on overdrive. But I will tell you something that I think maybe is incorrect in your question, which is that a lot of the customers that buy Salesforce and a lot of the relationships that we have, not just CEO relationships, CIO relationships, line of business relationships, are people who want to acquire this type of technology. I know because as I kind of prepared it and think about relationships and acquisitions like the one we're announcing today, in my mind, I'm always kind of trialing, trial ballooning kind of with those customers and they don't know what I'm thinking, but I do.
Or I'm saying, oh, well, if we have this kind of a product, is that interesting? If we have that kind of a product, is that interesting? And it is just a natural fit between Salesforce and Tableau. And I just noticed on social media the tremendous acceptance by our customers just in the last hour since we've announced of these technologies. I'm just finishing a book right now called Trailblazer, which we just put the pre order up on Amazon and actually talked quite a bit about that content of the beginner's mind because I do think that it is something that Salesforce has been able to maintain over 20 years and it's so important to us putting something like this together, but also just participating with our customers and asking them what do they really want.
I mean, that's really the heart of the beginner's mind and seeing these two companies come together, I think is a vision for a future sales force that is so exciting. And you'll see on the tweet that I wrote, I made a little diagram that is our Customer 360 and vision for our platform and how Tableau fits so beautifully inside there. Well, anyway, we're kind of coming down to the end of the hour and I just want to reinforce we've got a gorgeous new sales force tower in New York City happening here. And we have the Ohana floor opening tonight. So Adam, I don't think you're going to be able to come because I think you're going to have to stay in Seattle, right?
You're busy today. But for the rest of you who are in New York, but for the rest of you who are here in New York City, we'll welcome you for 6 to 9 o'clock tonight. We're going to have a great party on the top floor. You can see what we did with this MetLife building. We're very grateful to our customer MetLife who actually came to us and said that they wanted to turn this building over to us.
So thank you to Steve. And you're going to see a beautiful new Salesforce tower Ohana floor. And as you know, our Ohana floors, we use them of course during the day with customers and do events like this one. But at night, we turn them over for free to nonprofits and NGOs. And if the success of the Ohana floor and NGOs here in New York City who are trying to raise money and to NGOs here in New York City who are trying to raise money and amplify their operations.
And we know a lot of those because there's over 40,000 nonprofits and NGOs who run on Salesforce for free. And we're looking forward to seeing everybody tonight. So with that, I'll end the call. Thank you very much, everybody. Thank you, guys.
Ladies and gentlemen, thank you for your participation on today's conference. This does conclude our program and we may all disconnect. Everyone have a wonderful day.