Cellebrite (NASDAQ: CLBT), a global leader in Digital Intelligence
(“DI”) solutions for the public and private sectors, today
announced financial results for the three and six months ending
June 30, 2024.
“Our outstanding second-quarter 2024 performance was highlighted
by significant strategic progress and strong growth in ARR, revenue
and adjusted EBITDA,” said Yossi Carmil, Cellebrite’s CEO. “During
the past several months, we delivered against our top strategic
priorities while advancing important initiatives to expand our
relationship with the U.S. federal government, drive AI-powered
innovation across our Case to Closure platform, and improve our
capital structure and trading liquidity. We are pleased to see that
our Case to Closure platform is resonating with both public sector
agencies and corporations around the world, enabling us to deliver
on our brand promise of Justice Accelerated and, in the process,
help make our world a better, safer place. As a result of our
first-half 2024 financial performance and the opportunities we see
over the next two quarters, we have increased our full-year 2024
outlook and believe that we are positioned to deliver an ARR growth
rate and an adjusted EBITDA margin that will achieve or surpass
‘Rule of 45’ for the second straight year.”
Second-Quarter 2024 Financial
Highlights
- Revenue of $95.7 million, up 25% year-over-year
- Subscription revenue was $85.4 million, up 27%
year-over-year
- Annual Recurring Revenue (ARR) of $345.9 million, up 26%
year-over-year
- Recurring revenue dollar-based net retention rate of 124%
- GAAP gross profit and gross margin of $79.5 million and 83.0%,
respectively; Non-GAAP gross profit and gross profit margin of
$80.1 million and 83.7%, respectively
- GAAP net loss of $23.8 million; Non-GAAP net income of $22.9
million
- GAAP diluted loss per share of $(0.12); Non-GAAP diluted EPS of
$0.10
- Adjusted EBITDA and adjusted EBITDA margin of $21.6 million and
22.6%, respectively
Second-Quarter 2024 and Recent Business
& Operational Highlights
TAM Expansion – U.S. Federal Marketplace
- On July 17, 2024, Cellebrite
formed Cellebrite Federal Solutions and acquired Cyber Technology
Services, Inc. These are key steps in the Company’s plans to
broaden and elevate its relationships with the U.S. federal
government. These actions complement and augment an ongoing
investment to achieve FedRAMP authorization for Cellebrite’s
software-as-a-service offerings. As a result, Cellebrite moves
forward better positioned to directly participate in a broader
range of new programs and projects with U.S. federal customers over
the longer term.
Innovation and Go-to-Market
- On July 30,
2024, Cellebrite and Relativity jointly announced a strategic
technology and go-to-market partnership that delivers cutting-edge
solutions for mobile device collection, processing and review. The
new solutions drastically increase efficiency by streamlining
workflow while improving accessibility and usability of mobile
evidence in legal data use cases. The collaboration focuses on the
development and offering of a RelativityOne and Cellebrite Remote
Mobile Collection and Conversion, in which Relativity is the only
e-discovery provider to have direct integrations with Cellebrite
Endpoint Inspector and Cellebrite Endpoint Mobile Now.
Go-to-Market
- On June 26,
2024, Cellebrite announced that Endpoint Inspector SaaS, the
Company’s real-time, consent-based data access, collection and
analysis solution, is now available on Amazon Web Services (AWS)
Marketplace. As a result, AWS customers can quickly and easily
deploy Endpoint Inspector SaaS, through the AWS Marketplace
Management Portal. The AWS Marketplace also allows customers to
automate billing and track payments through AWS.
Team
- On August 14,
2024, Cellebrite announced that Troy Richardson had joined its
board of directors, effective August 13, 2024. Mr. Richardson is a
seasoned technology executive with more than 30 years of experience
in leading, scaling and transforming global organizations. With the
appointment of Troy Richardson, Cellebrite’s Board of Directors now
consists of 10 directors.
- On August 1,
2024, Cellebrite announced that Sigalit Shavit has joined the
Company as Chief Information Officer, bringing more than 30 years
of experience to Cellebrite’s information technology and security
team. Shavit will focus on ensuring that Cellebrite’s information
technology and security organizations continue supporting the
day-to-day needs of the business, respond decisively to
ever-evolving cyber threats, leverage AI and accelerate
innovation.
Capital Markets
- Cellebrite’s
efforts to drive value creation for shareholders underpinned two
major milestones:
- Cellebrite
announced today that it is calling for redemption all of the
Company’s outstanding warrants to purchase ordinary shares,
comprising 20.0 million public warrants (NASDAQ: CLBTW) and
approximately 9.7 million private warrants after the last reported
sale price of the Company’s ordinary shares was equal to or greater
than $10.00 per share for 20 days within a 30 trading-day
period.
- Earlier today,
Cellebrite also disclosed that 5.0 million Price Adjustment Shares
will be issued and 3.0 million Restricted Sponsored Shares vested
after the dollar volume-weighted average price of the Company’s
ordinary shares was greater than or equal to $12.50 per share for
the 20th trading day within a 30 trading-day period.
Supplemental financial information can be found
on the Investor Relations section of our website
at https://investors.cellebrite.com/financial-information/quarterly-results.
Financial OutlookDana Gerner,
Cellebrite’s CFO, stated, “Cellebrite’s strong top-line results in
the second quarter of 2024 primarily reflect our ongoing success in
increasing our wallet share with existing customers. Our Q224
revenue growth and disciplined management of our cost structure
supported another quarter of increased profitability. We expect to
build on our first-half 2024 performance as we move into the
seasonally stronger second half of our fiscal year. Accordingly, we
have updated our 2024 outlook, increasing Cellebrite’s full-year
revenue and adjusted EBITDA targets and raising the mid-point of
our full-year ARR expectations. In addition, we believe that
today’s separate announcement to redeem nearly 30 million
outstanding warrants, combined with the upcoming issuance of 5
million Price Adjustment Shares and recent vesting of 3 million
Restricted Sponsor Shares, further validates our strategic and
financial progress over the past 18 months and advances our
long-standing objectives of supporting healthy trading liquidity,
optimizing our capital structure and simplifying our financial
reporting.”
The Company’s updated 2024 expectations are as follows:
|
|
Third-Quarter 2024 Expectations (as of
8/15/24) |
|
Full-Year 2024 Expectations (as of 8/15/24) |
ARR |
|
$366 million - $374 million |
|
$388 million - $400 million |
Annual Growth |
|
24% - 27% |
|
23% - 27% |
Revenue |
|
$100 million - $104 million |
|
$390 million - $398 million |
Annual Growth |
|
19% - 24% |
|
20% - 22% |
Adjusted EBITDA |
|
$25 million - $29 million |
|
$90 million - $95 million |
Adjusted EBITDA margin |
|
25% - 28% |
|
23% - 24% |
|
|
|
|
|
Conference Call
InformationCellebrite will host a live conference call and
webcast later this morning to review the Company’s financial
second-quarter 2024 results and discuss its full-year 2024 outlook.
Pertinent details include:
Date: |
|
Thursday, August 15, 2024 |
Time: |
|
8:30 a.m. ET |
Call-In Number: |
|
203-518-9708 |
Conference ID: |
|
CLBTQ224 |
Event URL: |
|
https://investors.cellebrite.com/events/event-details/cellebrite-q2-2024-financial-results-investor-call-webcast |
Webcast URL: |
|
https://edge.media-server.com/mmc/p/gwesq4xv |
|
|
|
In conjunction with the conference call and webcast, historical
financial tables and supplemental data will be available on the
quarterly results section of Company’s investor relations website
at
https://investors.cellebrite.com/financial-information/quarterly-results.
A transcript of the call will be added to this page along with
access to the replay of the call later in the day.
Non-GAAP Financial Information and Key
Performance Indicators
This press release includes non-GAAP financial
measures. Cellebrite believes that the use of non-GAAP cost of
revenue, non-GAAP gross profit, non-GAAP operating expenses,
non-GAAP operating income, non-GAAP net income, non-GAAP EPS and
Adjusted EBITDA is helpful to investors. These measures, which the
Company refers to as our non-GAAP financial measures, are not
prepared in accordance with GAAP.
The Company believes that the non-GAAP financial
measures provide a more meaningful comparison of its operational
performance from period to period, and offer investors and
management greater visibility to the underlying performance of its
business. Mainly:
- Share-based compensation expenses
utilize varying available valuation methodologies, subjective
assumptions and a variety of equity instruments that can impact a
company's non-cash expenses;
- Acquired intangible assets are
valued at the time of acquisition and are amortized over an
estimated useful life after the acquisition, and
acquisition-related expenses are unrelated to current operations
and neither are comparable to the prior period nor predictive of
future results;
- To the extent that the above
adjustments have an effect on tax (income) expense, such an effect
is excluded in the non-GAAP adjustment to net income;
- Tax expense, depreciation and
amortization expense vary for many reasons that are often unrelated
to our underlying performance and make period-to-period comparisons
more challenging; and
- Financial
instruments are remeasured according to GAAP and vary for many
reasons that are often unrelated to the Company’s current
operations and affect financial income.
Each of our non-GAAP financial measures is an important tool for
financial and operational decision making and for evaluating our
own operating results over different periods of time. The non-GAAP
financial measures do not represent our financial performance under
U.S. GAAP and should not be considered as alternatives to operating
income or net income or any other performance measures derived in
accordance with GAAP. Non-GAAP measures should not be considered in
isolated from, or as an alternative to, financial measures
determined in accordance with GAAP. Non-GAAP financial measures may
not provide information that is directly comparable to that
provided by other companies in our industry, as other companies in
our industry may calculate non-GAAP financial results differently,
particularly related to non-recurring, unusual items. In addition,
there are limitations in using non-GAAP financial measures because
the non-GAAP financial measures are not prepared in accordance with
GAAP, and exclude expenses that may have a material impact on our
reported financial results. Further, share-based compensation
expense has been, and will continue to be for the foreseeable
future, significant recurring expenses in our business and an
important part of the compensation provided to our employees. In
addition, the amortization of intangible assets is expected
recurring expense over the estimated useful life of the underlying
intangible asset and acquisition-related expenses will be incurred
to the extent acquisitions are made in the future. Furthermore,
foreign exchange rates may fluctuate from one period to another,
and the Company does not estimate movements in foreign
currencies.
A reconciliation of each of these non-GAAP
financial measures to their most comparable GAAP measure is set
forth in a table included at the end of this press release, which
is also available on our website at
https://investors.cellebrite.com.
In regard to forward-looking non-GAAP guidance, we
are not able to reconcile the forward-looking Adjusted EBITDA
measure to the closest corresponding GAAP measure without
unreasonable efforts because we are unable to predict the ultimate
outcome of certain significant items including, but not limited to,
fair value movements, share-based payments for future awards, tax
expense, depreciation and amortization expense, and certain
financing and tax items.
Key Performance Indicators
This press release also includes key performance indicators,
including annual recurring revenue and dollar-based retention
rate.
Annual recurring revenue (“ARR”) is defined as the annualized
value of active term-based subscription license contracts and
maintenance contracts related to perpetual licenses in effect at
the end of that period. Subscription license contracts and
maintenance contracts for perpetual licenses are annualized by
multiplying the revenue of the last month of the period by 12. The
annualized value of contracts is a legal and contractual
determination made by assessing the contractual terms with our
customers. The annualized value of maintenance contracts is not
determined by reference to historical revenue, deferred revenue or
any other GAAP financial measure over any period. ARR is not a
forecast of future revenues, which can be impacted by contract
start and end dates and renewal rates.
Dollar-based net retention rate (“NRR”) is calculated by
dividing customer recurring revenue by base revenue. We define base
revenue as recurring revenue we recognized from all customers with
a valid license at the last quarter of the previous year period,
during the four quarters ended one year prior to the date of
measurement. We define our customer revenue as the recurring
revenue we recognized during the four quarters ended on the date of
measurement from the same customer base included in our measure of
base revenue, including recurring revenue resulting from additional
sales to those customers.
About Cellebrite
Cellebrite’s (Nasdaq: CLBT) mission is to enable its customers
to protect and save lives, accelerate justice and preserve privacy
in communities around the world. We are a global leader in Digital
Investigative solutions for the public and private sectors,
empowering organizations in mastering the complexities of legally
sanctioned digital investigations by streamlining intelligence
processes. Trusted by thousands of leading agencies and companies
worldwide, Cellebrite’s Digital Investigation platform and
solutions transform how customers collect, review, analyze and
manage data in legally sanctioned investigations. To learn more
visit us at www.cellebrite.com, https://investors.cellebrite.com,
or follow us on Twitter at @Cellebrite.
Caution Regarding Forward Looking
Statements
This document includes “forward-looking statements” within the
meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward looking
statements may be identified by the use of words such as
“forecast,” “intend,” “seek,” “target,” “anticipate,” “will,”
“appear,” “approximate,” “foresee,” “might,” “possible,”
“potential,” “believe,” “could,” “predict,” “should,” “could,”
“continue,” “expect,” “estimate,” “may,” “plan,” “outlook,”
“future” and “project” and other similar expressions that predict,
project or indicate future events or trends or that are not
statements of historical matters. Such forward-looking statements
include estimated financial information for the third quarter of
2024 and full year 2024 and certain statements related to
increasing our full-year 2024 outlook and being positioned to
deliver an ARR growth rate and an adjusted EBITDA margin that will
achieve or surpass ‘Rule of 45’ for the second straight year; our
expectation to build on our first-half 2024 performance as we move
into the seasonally stronger second half of our fiscal year; and we
have updated our 2024 outlook, increasing Cellebrite’s full-year
revenue and adjusted EBITDA targets and raising the mid-point of
our full-year ARR expectations. Such forward-looking statements
including those with respect to 2024 third-quarter and full year
revenue, annual recurring revenue (ARR) and adjusted EBITDA, as
well as commentary associated with future performance, strategies,
prospects, and other aspects of Cellebrite’s business are based on
current expectations that are subject to risks and uncertainties. A
number of factors could cause actual results or outcomes to differ
materially from those indicated by such forward-looking statements.
These factors include, but are not limited to: Cellebrite’s ability
to keep pace with technological advances and evolving industry
standards; Cellebrite’s material dependence on the purchase,
acceptance and use of its solutions by law enforcement and
government agencies; real or perceived errors, failures, defects or
bugs in Cellebrite’s solutions; Cellebrite’s failure to maintain
the productivity of sales and marketing personnel, including
relating to hiring, integrating and retaining personnel; intense
competition in all of Cellebrite’s markets; the inadvertent or
deliberate misuse of Cellebrite’s solutions; failure to manage its
growth effectively; Cellebrite’s ability to introduce new solutions
and add-ons; its dependency on its customers renewing their
subscriptions; the low volume of business Cellebrite conducts via
e-commerce; risks associated with the use of artificial
intelligence; the risk of requiring additional capital to support
the growth of its business; risks associated with higher costs or
unavailability of materials used to create its hardware product
components; fluctuations in foreign currency exchange rates;
lengthy sales cycle for some of Cellebrite’s solutions; near term
declines in new or renewed agreements; risks associated with
inability to retain qualified personnel and senior management; the
security of Cellebrite’s operations and the integrity of its
software solutions; risks associated with the negative publicity
related to Cellebrite’s business and use of its products; risks
related to Cellebrite’s intellectual property; the regulatory
constraints to which Cellebrite is subject; risks associated with
Cellebrite’s operations in Israel, including the ongoing
Israel-Hamas war and the risk of a greater regional conflict; risks
associated with different corporate governance requirements
applicable to Israeli companies and risks associated with being a
foreign private issuer and an emerging growth company; market
volatility in the price of Cellebrite’s shares; changing tax laws
and regulations; risks associated with joint ventures, partnerships
and strategic initiatives; risks associated with Cellebrite’s
significant international operations; risks associated with
Cellebrite’s failure to comply with anti-corruption, trade
compliance, anti-money-laundering and economic sanctions laws and
regulations; risks relating to the adequacy of Cellebrite’s
existing systems, processes, policies, procedures, internal
controls and personnel for Cellebrite’s current and future
operations and reporting needs; and other factors, risks and
uncertainties set forth in the section titled “Risk Factors” in
Cellebrite’s annual report on Form 20-F filed with the SEC on March
21, 2024 and as amended on April 12, 2024, and in other documents
filed by Cellebrite with the U.S. Securities and Exchange
Commission (“SEC”), which are available free of charge at
www.sec.gov. You are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made,
in this communication or elsewhere. Cellebrite undertakes no
obligation to update its forward-looking statements, whether as a
result of new information, future developments or otherwise, should
circumstances change, except as otherwise required by securities
and other applicable laws.
Contacts:
Investors RelationsAndrew KramerVice President,
Investor Relationsinvestors@cellebrite.com+1 973.206.7760
Media Victor CooperSr. Director of Corporate
Communications + Content OperationsVictor.cooper@cellebrite.com+1
404.804.5910
Cellebrite DI Ltd.Second Quarter 2024 Results Summary(U.S
Dollars in thousands) |
|
|
For the three months ended |
|
For the six months ended |
|
June 30, |
|
June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Revenue |
95,714 |
|
|
76,684 |
|
|
185,296 |
|
|
147,918 |
|
Gross profit |
79,453 |
|
|
63,653 |
|
|
155,771 |
|
|
122,481 |
|
Gross margin |
83.0 |
% |
|
83.0 |
% |
|
84.1 |
% |
|
82.8 |
% |
Operating income |
12,487 |
|
|
4,623 |
|
|
21,734 |
|
|
4,759 |
|
Operating margin |
13.0 |
% |
|
6.0 |
% |
|
11.7 |
% |
|
3.2 |
% |
Net loss |
(23,811 |
) |
|
(32,348 |
) |
|
(95,183 |
) |
|
(72,953 |
) |
Cash flow from operating
activities |
14,513 |
|
|
16,576 |
|
|
24,554 |
|
|
29,052 |
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Data: |
|
|
|
|
|
|
|
Operating income |
19,806 |
|
|
9,395 |
|
|
35,685 |
|
|
15,048 |
|
Operating margin |
20.7 |
% |
|
12.3 |
% |
|
19.3 |
% |
|
10.2 |
% |
Net income |
22,925 |
|
|
10,715 |
|
|
39,791 |
|
|
17,614 |
|
Adjusted EBITDA |
21,618 |
|
|
11,124 |
|
|
39,250 |
|
|
18,428 |
|
Adjusted EBITDA margin |
22.6 |
% |
|
14.5 |
% |
|
21.2 |
% |
|
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cellebrite DI Ltd. Condensed Consolidated Balance
Sheets(U.S. Dollars in thousands) |
|
|
|
June 30, |
|
December 31, |
|
|
2024 |
|
2023 |
|
|
(Unaudited) |
|
(Audited) |
Assets |
|
|
|
|
Current
assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
106,956 |
|
|
$ |
189,517 |
|
Short-term deposits |
|
|
126,723 |
|
|
|
74,713 |
|
Marketable securities |
|
|
71,630 |
|
|
|
38,693 |
|
Trade receivables (net of
allowance for credit losses of $2,019 and $1,583 as of June 30,
2024 and December 31, 2023, respectively) |
|
|
70,699 |
|
|
|
77,269 |
|
Prepaid expenses and other
current assets |
|
|
24,443 |
|
|
|
26,400 |
|
Contract acquisition
costs |
|
|
5,516 |
|
|
|
5,550 |
|
Inventories |
|
|
8,784 |
|
|
|
9,940 |
|
Total current
assets |
|
|
414,751 |
|
|
|
422,082 |
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
Other non-current assets |
|
|
8,224 |
|
|
|
7,341 |
|
Marketable securities |
|
|
60,652 |
|
|
|
28,859 |
|
Deferred tax assets, net |
|
|
8,806 |
|
|
|
7,024 |
|
Property and equipment,
net |
|
|
15,806 |
|
|
|
15,896 |
|
Intangible assets, net |
|
|
9,807 |
|
|
|
10,594 |
|
Goodwill |
|
|
26,829 |
|
|
|
26,829 |
|
Operating lease right-of-use
assets, net |
|
|
11,708 |
|
|
|
14,260 |
|
Total non-current
assets |
|
|
141,832 |
|
|
|
110,803 |
|
|
|
|
|
|
Total
assets |
|
$ |
556,583 |
|
|
$ |
532,885 |
|
|
|
|
|
|
Liabilities and
shareholders’ (deficiency) equity |
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
Trade payables |
|
$ |
6,510 |
|
|
$ |
8,282 |
|
Other accounts payable and
accrued expenses |
|
|
42,259 |
|
|
|
44,845 |
|
Deferred revenues |
|
|
183,938 |
|
|
|
195,725 |
|
Operating lease
liabilities |
|
|
4,521 |
|
|
|
4,972 |
|
Total current
liabilities |
|
|
237,228 |
|
|
|
253,824 |
|
|
|
|
|
|
Long-term
liabilities |
|
|
|
|
Other long term
liabilities |
|
|
6,492 |
|
|
|
5,515 |
|
Deferred revenues |
|
|
42,369 |
|
|
|
47,098 |
|
Restricted Sponsor Shares
liability |
|
|
75,230 |
|
|
|
47,247 |
|
Price Adjustment Shares
liability |
|
|
134,758 |
|
|
|
81,715 |
|
Warrant liability |
|
|
93,510 |
|
|
|
54,117 |
|
Operating lease
liabilities |
|
|
7,155 |
|
|
|
9,157 |
|
Total long-term
liabilities |
|
|
359,514 |
|
|
|
244,849 |
|
|
|
|
|
|
Total
liabilities |
|
$ |
596,742 |
|
|
$ |
498,673 |
|
|
|
|
|
|
Shareholders’
(deficiency) equity |
|
|
|
|
Share capital |
|
|
*) |
|
|
|
*) |
|
Additional paid-in
capital |
|
|
(64,284 |
) |
|
|
(84,896 |
) |
Treasury share, NIS 0.00001
par value; 41,776 ordinary shares |
|
|
(85 |
) |
|
|
(85 |
) |
Accumulated other
comprehensive income |
|
|
1,250 |
|
|
|
1,050 |
|
Retained earnings |
|
|
22,960 |
|
|
|
118,143 |
|
Total shareholders’
(deficiency) equity |
|
|
(40,159 |
) |
|
|
34,212 |
|
|
|
|
|
|
Total liabilities and
shareholders’ (deficiency) equity |
|
$ |
556,583 |
|
|
$ |
532,885 |
|
|
|
|
|
|
*) Less than 1 USD |
|
|
|
|
|
|
|
|
|
Cellebrite DI Ltd. Condensed Consolidated Statements of
Income(U.S Dollars in thousands, except share and per share
data) |
|
|
|
For the three months ended June |
|
For the six months ended June |
|
|
June 30, |
|
June 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Revenue: |
|
|
|
|
|
|
|
|
Subscription services |
|
$ |
65,738 |
|
|
$ |
50,512 |
|
|
$ |
127,841 |
|
|
$ |
97,879 |
|
Term-license |
|
|
19,630 |
|
|
|
16,694 |
|
|
|
36,749 |
|
|
|
30,609 |
|
Total subscription |
|
|
85,368 |
|
|
|
67,206 |
|
|
|
164,590 |
|
|
|
128,488 |
|
Other non-recurring |
|
|
3,486 |
|
|
|
1,972 |
|
|
|
7,054 |
|
|
|
4,890 |
|
Professional services |
|
|
6,860 |
|
|
|
7,506 |
|
|
|
13,652 |
|
|
|
14,540 |
|
Total
revenue |
|
|
95,714 |
|
|
|
76,684 |
|
|
|
185,296 |
|
|
|
147,918 |
|
|
|
|
|
|
|
|
|
|
Cost of
revenue: |
|
|
|
|
|
|
|
|
Subscription services |
|
|
6,399 |
|
|
|
4,946 |
|
|
|
12,197 |
|
|
|
9,438 |
|
Term-license |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Total subscription |
|
|
6,399 |
|
|
|
4,946 |
|
|
|
12,197 |
|
|
|
9,440 |
|
Other non-recurring |
|
|
4,826 |
|
|
|
2,926 |
|
|
|
7,920 |
|
|
|
5,907 |
|
Professional services |
|
|
5,036 |
|
|
|
5,159 |
|
|
|
9,408 |
|
|
|
10,090 |
|
Total cost of
revenue |
|
|
16,261 |
|
|
|
13,031 |
|
|
|
29,525 |
|
|
|
25,437 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
79,453 |
|
|
$ |
63,653 |
|
|
$ |
155,771 |
|
|
$ |
122,481 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
23,693 |
|
|
|
21,053 |
|
|
|
46,890 |
|
|
|
42,184 |
|
Sales and marketing |
|
|
32,320 |
|
|
|
26,745 |
|
|
|
64,379 |
|
|
|
54,346 |
|
General and
administrative |
|
|
10,953 |
|
|
|
11,232 |
|
|
|
22,768 |
|
|
|
21,192 |
|
Total operating
expenses |
|
$ |
66,966 |
|
|
$ |
59,030 |
|
|
$ |
134,037 |
|
|
$ |
117,722 |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
$ |
12,487 |
|
|
$ |
4,623 |
|
|
$ |
21,734 |
|
|
$ |
4,759 |
|
Financial expense, net |
|
|
(34,502 |
) |
|
|
(36,051 |
) |
|
|
(113,078 |
) |
|
|
(74,826 |
) |
Loss before tax |
|
|
(22,015 |
) |
|
|
(31,428 |
) |
|
|
(91,344 |
) |
|
|
(70,067 |
) |
Tax expense |
|
|
1,796 |
|
|
|
920 |
|
|
|
3,839 |
|
|
|
2,886 |
|
Net loss |
|
$ |
(23,811 |
) |
|
$ |
(32,348 |
) |
|
$ |
(95,183 |
) |
|
$ |
(72,953 |
) |
|
|
|
|
|
|
|
|
|
Losses per
share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.12 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.48 |
) |
|
$ |
(0.37 |
) |
Diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.48 |
) |
|
$ |
(0.37 |
) |
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
198,949,594 |
|
|
|
188,130,294 |
|
|
|
197,840,662 |
|
|
|
187,239,136 |
|
Diluted |
|
|
198,949,594 |
|
|
|
188,130,294 |
|
|
|
197,840,662 |
|
|
|
187,239,136 |
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income: |
|
|
|
|
|
|
|
|
Unrealized (loss)
income arising during the period |
|
|
(326 |
) |
|
|
70 |
|
|
|
(850 |
) |
|
|
26 |
|
Unrealized (loss) income on
marketable securities |
|
|
(100 |
) |
|
|
(51 |
) |
|
|
(320 |
) |
|
|
126 |
|
Currency translation
adjustments |
|
|
187 |
|
|
|
(368 |
) |
|
|
1,370 |
|
|
|
(966 |
) |
Total other comprehensive
(loss) income, net of tax |
|
|
(239 |
) |
|
|
(349 |
) |
|
|
200 |
|
|
|
(814 |
) |
Total other
comprehensive loss |
|
$ |
(24,050 |
) |
|
$ |
(32,697 |
) |
|
$ |
(94,983 |
) |
|
$ |
(73,767 |
) |
|
|
|
|
|
|
|
|
|
Cellebrite DI Ltd.Condensed Consolidated Statements of Cash
Flow(U.S Dollars in thousands, except share and per share
data) |
|
|
|
For the three months ended |
|
For the six months ended |
|
|
June 30, |
|
June 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Cash flow from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(23,811 |
) |
|
$ |
(32,348 |
) |
|
$ |
(95,183 |
) |
|
$ |
(72,953 |
) |
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Share based compensation and
RSU's |
|
|
6,555 |
|
|
|
4,600 |
|
|
|
12,251 |
|
|
|
9,057 |
|
Amortization of premium,
discount and accrued interest on marketable securities |
|
|
(755 |
) |
|
|
(290 |
) |
|
|
(1,302 |
) |
|
|
(461 |
) |
Depreciation and
amortization |
|
|
2,576 |
|
|
|
2,569 |
|
|
|
5,256 |
|
|
|
5,016 |
|
Interest income from short
term deposits |
|
|
(2,642 |
) |
|
|
(1,713 |
) |
|
|
(5,470 |
) |
|
|
(2,397 |
) |
Deferred tax assets, net |
|
|
(942 |
) |
|
|
(98 |
) |
|
|
(1,568 |
) |
|
|
462 |
|
Remeasurement of warrant
liability |
|
|
16,806 |
|
|
|
12,454 |
|
|
|
39,393 |
|
|
|
22,263 |
|
Remeasurement of Restricted
Sponsor Shares |
|
|
9,098 |
|
|
|
9,051 |
|
|
|
27,983 |
|
|
|
20,093 |
|
Remeasurement of Price
Adjustment Shares liabilities |
|
|
12,676 |
|
|
|
16,655 |
|
|
|
53,043 |
|
|
|
36,597 |
|
(Increase) decrease in trade
receivables |
|
|
(9,237 |
) |
|
|
8,490 |
|
|
|
6,021 |
|
|
|
18,117 |
|
(Decrease) increase in
deferred revenue |
|
|
(1,649 |
) |
|
|
87 |
|
|
|
(15,055 |
) |
|
|
10,555 |
|
Increase in other non-current
assets |
|
|
(1,492 |
) |
|
|
(135 |
) |
|
|
(883 |
) |
|
|
(1,062 |
) |
Decrease (increase) in prepaid
expenses and other current assets |
|
|
785 |
|
|
|
(1,987 |
) |
|
|
2,752 |
|
|
|
(5,624 |
) |
Changes in operating lease
assets |
|
|
1,313 |
|
|
|
1,333 |
|
|
|
2,641 |
|
|
|
2,700 |
|
Changes in operating lease
liability |
|
|
(1,273 |
) |
|
|
(1,400 |
) |
|
|
(2,542 |
) |
|
|
(2,962 |
) |
Decrease (increase) in
inventories |
|
|
474 |
|
|
|
583 |
|
|
|
1,151 |
|
|
|
(642 |
) |
(Decrease) increase in trade
payables |
|
|
(449 |
) |
|
|
117 |
|
|
|
(1,591 |
) |
|
|
381 |
|
Increase (decrease) in other
accounts payable and accrued expenses |
|
|
6,114 |
|
|
|
(862 |
) |
|
|
(3,320 |
) |
|
|
(9,741 |
) |
Increase (decrease) in other
long-term liabilities |
|
|
366 |
|
|
|
(530 |
) |
|
|
977 |
|
|
|
(347 |
) |
Net cash provided by operating
activities |
|
|
14,513 |
|
|
|
16,576 |
|
|
|
24,554 |
|
|
|
29,052 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and
equipment |
|
|
(2,073 |
) |
|
|
(825 |
) |
|
|
(3,568 |
) |
|
|
(1,889 |
) |
Purchase of Intangible assets |
|
|
(279 |
) |
|
|
— |
|
|
|
(904 |
) |
|
|
— |
|
Investment in marketable securities |
|
|
(30,890 |
) |
|
|
(10,653 |
) |
|
|
(99,282 |
) |
|
|
(27,005 |
) |
Proceeds from maturity of
marketable securities |
|
|
20,391 |
|
|
|
13,434 |
|
|
|
35,436 |
|
|
|
29,507 |
|
Investment in short term
deposits |
|
|
(79,000 |
) |
|
|
(38,000 |
) |
|
|
(122,000 |
) |
|
|
(54,000 |
) |
Redemption of short term
deposits |
|
|
58,587 |
|
|
|
25,302 |
|
|
|
75,459 |
|
|
|
38,581 |
|
Net cash used in investing
activities |
|
|
(33,264 |
) |
|
|
(10,742 |
) |
|
|
(114,859 |
) |
|
|
(14,806 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of options to
shares |
|
|
2,568 |
|
|
|
5,079 |
|
|
|
6,887 |
|
|
|
7,185 |
|
Proceeds from Employee Share
Purchase Plan, net |
|
|
756 |
|
|
|
610 |
|
|
|
1,506 |
|
|
|
1,234 |
|
Net cash provided by financing
activities |
|
|
3,324 |
|
|
|
5,689 |
|
|
|
8,393 |
|
|
|
8,419 |
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents |
|
|
(15,427 |
) |
|
|
11,523 |
|
|
|
(81,912 |
) |
|
|
22,665 |
|
Net effect of Currency
Translation on cash and cash equivalents |
|
|
(49 |
) |
|
|
7 |
|
|
|
(649 |
) |
|
|
192 |
|
Cash and cash equivalents at
beginning of period |
|
|
122,432 |
|
|
|
98,972 |
|
|
|
189,517 |
|
|
|
87,645 |
|
Cash and cash
equivalents at end of period |
|
$ |
106,956 |
|
|
$ |
110,502 |
|
|
$ |
106,956 |
|
|
$ |
110,502 |
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow
information: |
|
|
|
|
|
|
|
|
Income taxes paid |
|
$ |
1,766 |
|
|
$ |
4,902 |
|
|
$ |
2,557 |
|
|
$ |
8,527 |
|
Non-cash activities |
|
|
|
|
|
|
|
|
Operating lease liabilities arising from obtaining right of use assets |
|
$ |
126 |
|
|
$ |
228 |
|
|
$ |
215 |
|
|
$ |
1,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cellebrite DI Ltd. Reconciliation of GAAP to Non-GAAP
Financial Information(U.S Dollars in thousands, except share and
per share data) |
|
|
For the three months ended |
|
For the six months ended |
|
June 30, |
|
June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Cost of revenues |
$ |
16,261 |
|
|
$ |
13,031 |
|
|
$ |
29,525 |
|
|
$ |
25,437 |
|
Less: |
|
|
|
|
|
|
|
Share based compensation |
|
663 |
|
|
|
414 |
|
|
|
1,093 |
|
|
|
800 |
|
Acquisition related costs |
|
— |
|
|
|
14 |
|
|
|
2 |
|
|
|
27 |
|
Non-GAAP cost of revenues |
$ |
15,598 |
|
|
$ |
12,603 |
|
|
$ |
28,430 |
|
|
$ |
24,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30, |
|
June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Gross profit |
$ |
79,453 |
|
|
$ |
63,653 |
|
|
$ |
155,771 |
|
|
$ |
122,481 |
|
Share based compensation |
|
663 |
|
|
|
414 |
|
|
|
1,093 |
|
|
|
800 |
|
Acquisition related costs |
|
— |
|
|
|
14 |
|
|
|
2 |
|
|
|
27 |
|
Non-GAAP gross profit |
$ |
80,116 |
|
|
$ |
64,081 |
|
|
$ |
156,866 |
|
|
$ |
123,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30, |
|
June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Operating expenses |
$ |
66,966 |
|
|
$ |
59,030 |
|
|
$ |
134,037 |
|
|
$ |
117,722 |
|
Less: |
|
|
|
|
|
|
|
Issuance expenses |
|
— |
|
|
|
(345 |
) |
|
|
— |
|
|
|
(345 |
) |
Share based compensation |
|
5,892 |
|
|
|
4,186 |
|
|
|
11,158 |
|
|
|
8,257 |
|
Amortization of intangible
assets |
|
764 |
|
|
|
840 |
|
|
|
1,691 |
|
|
|
1,636 |
|
Acquisition related costs |
|
— |
|
|
|
(337 |
) |
|
|
7 |
|
|
|
(86 |
) |
Non-GAAP operating
expenses |
$ |
60,310 |
|
|
$ |
54,686 |
|
|
$ |
121,181 |
|
|
$ |
108,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30, |
|
June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Operating income |
$ |
12,487 |
|
|
$ |
4,623 |
|
|
$ |
21,734 |
|
|
$ |
4,759 |
|
Issuance expenses |
|
— |
|
|
|
(345 |
) |
|
|
— |
|
|
|
(345 |
) |
Share based compensation |
|
6,555 |
|
|
|
4,600 |
|
|
|
12,251 |
|
|
|
9,057 |
|
Amortization of intangible
assets |
|
764 |
|
|
|
840 |
|
|
|
1,691 |
|
|
|
1,636 |
|
Acquisition related costs |
|
— |
|
|
|
(323 |
) |
|
|
9 |
|
|
|
(59 |
) |
Non-GAAP operating income |
$ |
19,806 |
|
|
$ |
9,395 |
|
|
$ |
35,685 |
|
|
$ |
15,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30, |
|
June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Net loss |
$ |
(23,811 |
) |
|
$ |
(32,348 |
) |
|
$ |
(95,183 |
) |
|
$ |
(72,953 |
) |
Issuance expenses |
|
— |
|
|
|
(345 |
) |
|
|
— |
|
|
|
(345 |
) |
Share based compensation |
|
6,555 |
|
|
|
4,600 |
|
|
|
12,251 |
|
|
|
9,057 |
|
Amortization of intangible
assets |
|
764 |
|
|
|
840 |
|
|
|
1,691 |
|
|
|
1,636 |
|
Acquisition related costs |
|
— |
|
|
|
(323 |
) |
|
|
9 |
|
|
|
(59 |
) |
Tax expense |
|
837 |
|
|
|
131 |
|
|
|
604 |
|
|
|
1,325 |
|
Finance expense from financial
derivatives |
|
38,580 |
|
|
|
38,160 |
|
|
|
120,419 |
|
|
|
78,953 |
|
Non-GAAP net income |
$ |
22,925 |
|
|
$ |
10,715 |
|
|
$ |
39,791 |
|
|
$ |
17,614 |
|
|
|
|
|
|
|
|
|
Non-GAAP Earnings per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.11 |
|
|
$ |
0.05 |
|
|
$ |
0.19 |
|
|
$ |
0.09 |
|
Diluted |
$ |
0.10 |
|
|
$ |
0.05 |
|
|
$ |
0.18 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
198,949,594 |
|
|
|
188,130,294 |
|
|
|
197,840,662 |
|
|
|
187,239,136 |
|
Diluted |
|
211,343,253 |
|
|
|
199,704,722 |
|
|
|
210,616,686 |
|
|
|
199,820,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30, |
|
June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Net loss |
$ |
(23,811 |
) |
|
$ |
(32,348 |
) |
|
$ |
(95,183 |
) |
|
$ |
(72,953 |
) |
Financial expense, net |
|
34,502 |
|
|
|
36,051 |
|
|
|
113,078 |
|
|
|
74,826 |
|
Tax expense |
|
1,796 |
|
|
|
920 |
|
|
|
3,839 |
|
|
|
2,886 |
|
Issuance expenses |
|
— |
|
|
|
(345 |
) |
|
|
— |
|
|
|
(345 |
) |
Share based compensation |
|
6,555 |
|
|
|
4,600 |
|
|
|
12,251 |
|
|
|
9,057 |
|
Amortization of intangible
assets |
|
764 |
|
|
|
840 |
|
|
|
1,691 |
|
|
|
1,636 |
|
Acquisition related costs |
|
— |
|
|
|
(323 |
) |
|
|
9 |
|
|
|
(59 |
) |
Depreciation expenses |
|
1,812 |
|
|
|
1,729 |
|
|
|
3,565 |
|
|
|
3,380 |
|
Adjusted EBITDA |
$ |
21,618 |
|
|
$ |
11,124 |
|
|
$ |
39,250 |
|
|
$ |
18,428 |
|
Cellebrite Digital Intel... (NASDAQ:CLBT)
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