Marc Benioff
Chair, Chief Executive Officer and Co-Founder at Salesforce
Thanks, Mike, and thank you all for being on the call. On our last call in March, we told you about how Salesforce had radically accelerated our transformation to profitable growth. We shared with you how we hit the hyperspace button across the key areas of our transformation: restructuring for the short and long term; reigniting our performance culture by focusing on productivity, operational excellence and profitability; prioritizing our core innovations that drive customer success; building even stronger relationships with you, our investors.
Our Q1 results show that we continue to make great progress. As I said in March, we're just getting started with this incredible transformation. We continued to scrutinize every dollar investment, every resource and every spend, and we're transforming every corner of our Company. Our progress over the last five months, well, it's very impressive and I cannot be more grateful to our entire team for their leadership. In fact, you may hear me say that several times on this call.
Our transformation drove our Q1 financial results. As I said, on our last call, well, improving profitability is our highest priority. As a result, we significantly exceeded our margin target for the quarter, delivering a non-GAAP operating margin of 27.6%, up 1,000 basis points year-over-year, incredible. And there's no greater point of evidence to our transformation than this amazing result following the tremendous operating margin in Q4.
In Q1, we delivered $8.2 billion in revenue, up 11% year-over-year and 13% in constant currency. We had some amazing wins in the quarter with Northwell Health, Paramount, Siemens, Spotify, NASA and the U.S. Department of Agriculture, among others.
We delivered $4.5 billion in operating cash flow, up 22% year-over-year. Our remaining performance obligation ended the quarter at $46.7 billion, an increase of 11% year-over-year. And through Q1, we've now returned more than $6 billion in share repurchases. As a result, for the third quarter in a row, we ended the quarter with fewer shares year-over-year, another amazing point of evidence on this incredible transformation.
Now, turning to our financial guidance. While the economy is not in our control, our margins are which is why we're raising our margin target for the full fiscal year. For FY '24, we're raising our non-GAAP operating margin to 28%, an improvement of 550 basis points year-over-year and we remain confident that we'll hit 30% non-GAAP operating margins in the first quarter of fiscal year '25. We could not be more excited about our progress. We're maintaining our fiscal year '24 revenue guidance of approximately $34.5 billion to $34.7 billion, over 10% projected growth year-over-year.
I couldn't be more proud of how our team has come together, stepped up and delivered these results. I've also been asked numerous times this quarter by our investors and our customers how we're able to make so much progress so fast and deliver these incredible numbers. It's very simple. It's our Ohana culture. It's our super power. And again, I'd like to thank our amazing team for this incredible accomplishment.
Last quarter, I told you of how our AI team is getting ready to launch Einstein GPT, the world's first generative AI for CRM. At Trailhead DX in March in front of thousands of Trailblazers here in San Francisco, that's exactly what we did. At its foundation, Einstein GPT is open and extensible. Customers can connect to multiple large language models, including for partners like OpenAI, Anthropic and others. This is a whole new way to work for our customers, users and Trailblazers.
Users on Salesforce are seeing new AI generative features across all of their most common workflows. And while many of these will be created by Salesforce developers, far more will be created by our incredible Trailblazer ecosystem. For low code of TrailBlazers, Einstein GPT will provide a toolset to design generative AI apps built on reasonable prompts.
For Pro code Trailblazers, Einstein GPT will offer an extensible ecosystem of LLM providers with configurable grounding. And Einstein GPT is the culmination of tremendous research and engineering by our world-class AI team, and I'd like to congratulate them on this amazing result.
And one more amazing result, this week, Einstein, Salesforce Einstein that we've been talking about for so many years on these calls, will generate an incredible 1 trillion predictions for our customers, an incredible milestone on our AI journey.
We saw more of the incredible work of our AI team at our New York City world tour this month when we demonstrated Slack GPT. Slack is a secure treasure trove of company data that generative AI can use to give every company and every employee their own powerful AI assistant, helping every employee be more productive and transforming the future of work.
Slack GPT can leverage the power of generative AI to deliver instant conversation summaries, research tools and writing assistance directly in Slack. And you may never need to leave Slack to get a question answered. Slack is the perfect conversational interface for working with LLMs, which is why so many AI companies are Slack first and why OpenAI, ChatGPT and Anthropic squad can now use Slack as a native interface. Slack is also delivering integrated sales and service experiences powered by native GPT to be the best interface for all of our Salesforce customers, and there's a lot more magic to come with Slack and generative AI.
In this month, we also announced Tableau GPT at our Tableau Conference where we had over 8,000 in-person attendees. Tableau GPT simplifies data analysis for all of our users, enabling anyone to inquire about their data using Einstein GPT and obtain AI-driven insights at scale. The intelligence and automation that Tableau GPT provides is tremendously important in this area of hyperscale data that we're all entering.
The coming wave of generative AI will be more revolutionary than any technology innovation that's come before in our lifetime or maybe any lifetime. Like Netscape Navigator, which opened the door to a greater Internet, a new door has opened with generative AI and it is reshaping our world in ways that we've never imagined. Every CEO realizes they're going to have to invest in AI aggressively to remain competitive, and Salesforce is going to be their trusted partner to get them to do just that.
Every CEO I've spoken with sees AI as a revolution, beginning and ending with the customer. And every CIO I've spoken with wants more productivity, more automation and more intelligence through using AI. A great example already deploying this technology is Gucci. We're working with them to augment their client advisors by building AI chat technology that creates a Guccified tone of service, well, incredible new voice, amplifying brands, storytelling and incremental sales as well.
It's an incredibly exciting vision for generative AI to transform was -- which was customer service into now customer service, marketing, and sales, all through augmenting Gucci employee capabilities using this amazing generative AI. But we can only do all of this with trust.
Our customers need to understand where their data is going and they must be able to maintain data integrity and access and privacy controls. Large customers must maintain data compliance as a critical part of their governance while using generative AI and LLMs. This is not true in the consumer environment, but it is true for our customers or enterprise customers who demand the highest levels of this capability. Where customers who for years have used relational databases as the secure mechanism of their trusted data, they already have that high level of security to the row and cell level. We all understand that. And that is why we have built our GPT Trust Layer into Einstein GPT.
The GPT Trust Layer gives connected LLM secure, real-time access to data without the need to move all of your data into the LLM itself. It's an incredible breakthrough for our customers and working with LLMs in a secure and trusted way. While they're using the LLMs, the data itself is not moving and being stored in the LLM. That is what our customers want.
They can be sure that the customer data is where they know it is, where they can be assured that it is for their compliance and for their governance. And I cannot be more excited about our AI CRM and delivering on this future of trusted AI through our new Salesforce GPT Trust Layer.
Finally, I can't talk about AI without talking about the success of our Data Cloud. Data Cloud is the heart of Customer 360 and now our fastest-growing cloud ever. Data Cloud creates a real-time intelligent data lake that brings together and harmonizes all of our customers' data in one place.
In Q1, we closed one of our largest healthcare industry deals ever with Northwell Health, New York's largest private employer. They have 21 hospitals, 900 patient -- 900 outpatient facility or ambulatory facilities, and their own medical school all in New York. By integrating Data Cloud with Health Cloud, Tableau, MuleSoft, well, our entire Customer 360 vision, Northwell is improving patient care by bringing together its vast data resources to create a single source of truth and using AI to govern data, use and maintain regulatory compliance.
This is the future of our customers and our industry. It's AI, plus data, plus CRM. And of course, this AI revolution is just getting started, which is why we've invested $250 million in our new AI venture fund to fuel startups developing our trusted generative AI vision. We'll be talking more about this at our AI Day event on June 12th in New York City, and I hope that you'll join me there.
To wrap up, we're transforming every corner of our Company. We're laser focused on our short-term and long-term restructuring, improving productivity and performance, prioritizing our core innovations and delivering for our shareholders. As a result, productivity is up, profitability is up, revenue is up, cash flow is up, and we dramatically increased our margin guidance.
And just like the cloud, mobile and social, well, AI, this revolution is a new innovation cycle. It's going to be a new spending cycle as well, which is going spark a massive new tech buying cycle. And we've led the industry through each of these cycles and I couldn't be more excited for our future as we continue on a path to our long-term goal to make Salesforce the largest most profitable enterprise software company in the world, and the Number 1 safest and most trusted AI CRM.
With that, Brian, I'll turn it over to you.
