Mark J. Hawkins
-
salesforce.com, inc. - President
& CFO
Yes, let me just add to that, Marc. Thank you, sir, for the question. Absolutely, we have the commitment to continuing to expand our
non-GAAP
operating margin improvement. As Marc said, if you just look at the vector over the last 5 years, we just persistently moved forward. Were really obviously focused even, as we speak, on driving our
organic operating efficiencies even today. Obviously, were taking on over the course of this transaction in .org $200 million noncash accounting charge onetime, DRO write-downs, billed and unbilled transaction cost, integration costs, but
operationally, were unwavering in our focus to drive efficiencies in the business, and its exactly as Marc talked. So thank you for asking that. You should expect that from us.
Marc R. Benioff
-
salesforce.com, inc. -
Co-Founder,
Chairman
&
Co-CEO
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.
Mark J. Hawkins
-
salesforce.com, inc. - President
& CFO
Yes, 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.
Marc R. Benioff
-
salesforce.com, inc. -
Co-Founder,
Chairman
&
Co-CEO
And you also hit
some amazing new records with cash flow.
Mark J. Hawkins
-
salesforce.com, inc. - President
& CFO
Cash flow, we grew 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 were very
pleased to do this, and were obviously focused on the future and, as sir is asking about, continuous improvement.
Operator
And our next question will come from Walter Pritchard with Citi.
Walter H Pritchard
-
Citigroup Inc, Research Division - MD and U.S. Software Analyst
Question for Marc or maybe for Bret. Just in terms of thoughts generally, getting into new markets and organic development versus M&A, it feels like there
are lot of assets given what weve 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&A versus organic development? It seems like this
deal may represent a change there?
Marc R. Benioff
-
salesforce.com, inc. -
Co-Founder,
Chairman
&
Co-CEO
Well, it really doesnt represent a change. To be honest with
you, were excited to be able to get a deal done when we can get a deal done. I think in this environment, youd be surprised, and I got some messages from some friends of mine this morning, and I dont think that they realize that
actually getting finding 2 companies that can come together like this is actually kind of a miracle. I mean, unlike Adam to kind of mention that talk about that in a second, but its about really finding people who can work
together, cultures that will come together, products that work together, common customer bases, brand values, its a miracle when you can make all of it happen.
Sometimes youre kind of baking it within the company, like thats 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 now we shall say showing them what to do but kind of guiding them. And so it was a
natural acquisition for us. They were already part of our Salesforce family. In this case, this is kind of Tableau, I would say, is kind of a brother from another mother, which is its an incredible company thats so similar to who we are.
Anyway, Adam would you just talk about that?
Adam Selipsky
-
Tableau Software, Inc. - CEO, President
& Executive
Director
Yes. I think, we very quickly felt the same sentiment. I mean, the first thing I think you look for and I try to find that miracle that Marc
referenced. It is our common vision. Are you trying to get to the same place? And for both companies, we really anchored that completely around the customer. We talk about being relentlessly customer focused, Marc and his team talk about customer
success at the heart of what they do. And itll be very hard for us to have this kind of partner who didnt look at the world through that same lens.