[Second Quarter 2023 Results Announcement](index=1&type=section&id=Cellebrite%20Announces%20Second-Quarter%202023%20Results) Cellebrite announced strong Q2 2023 financial results, raising its full-year outlook and highlighting significant business and operational achievements [Second Quarter 2023 Financial Highlights](index=1&type=section&id=Second%20Quarter%202023%20Financial%20Highlights) Cellebrite reported strong Q2 2023 financial performance with 23% revenue growth and 28% ARR increase, leading to a raised full-year outlook Q2 2023 Key Financial Metrics (U.S. Dollars in millions) | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | **Revenue** | $76.7 million | 23% Increase | | **Subscription Revenue** | $67.2 million | 35% Increase | | **Annual Recurring Revenue (ARR)** | $273.7 million | 28% Increase | | **Adjusted EBITDA** | $11.1 million | - | | **Adjusted EBITDA Margin** | 14.5% | - | | **Non-GAAP Net Income** | $10.7 million | - | | **Non-GAAP Diluted EPS** | $0.05 | - | - The company has **increased its 2023 outlook** for revenue, ARR, and adjusted EBITDA, reflecting solid momentum in a healthy market[1](index=1&type=chunk)[2](index=2&type=chunk) - The recurring revenue dollar-based net retention rate was **125%**, indicating strong customer retention and expansion[2](index=2&type=chunk) [Business and Operational Highlights](index=2&type=section&id=Second%20Quarter%202023%20and%20Recent%20Digital%20Intelligence%20Highlights) Cellebrite demonstrated strong Q2 2023 business momentum, closing 25 large deals, expanding key customer engagements, and launching new product capabilities - Appointed Thomas E. Hogan as Executive Chairman of the Board of Directors[11](index=11&type=chunk) - Closed **25 large deals**, each valued at **$500,000 or more**, in Q2 2023[11](index=11&type=chunk) - A large North American federal law enforcement agency expanded its engagement, expected to **triple its ARR** with Cellebrite to nearly **$5 million**[8](index=8&type=chunk) - Four federal forces in a Latin American country increased their annual spending with Cellebrite by **more than tenfold**[10](index=10&type=chunk) - Announced **UFED Ultra**, a next-generation Collect & Review solution, and new capabilities for **Guardian**, a SaaS-based evidence management solution[9](index=9&type=chunk)[12](index=12&type=chunk) - Won **five categories** at the 2023 Forensic Focus 4:Cast Awards, including DFIR Commercial Tool of the Year and DFIR Team of the Year[32](index=32&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) Cellebrite raised its full-year 2023 financial guidance, projecting revenue between $310 million and $320 million and ARR between $303 million and $313 million Updated 2023 Financial Outlook (as of August 8, 2023, U.S. Dollars in millions) | Metric | Original Expectations | Updated Expectations | | :--- | :--- | :--- | | **2023 Revenue** | $305M - $315M | $310M - $320M | | **Growth over 2022** | 13% - 16% | 15% - 18% | | **December 2023 ARR** | $300M - $310M | $303M - $313M | | **Growth over 2022** | 21% - 25% | 22% - 26% | | **2023 Adjusted EBITDA** | $35M - $40M | $39M - $44M | | **2023 Adjusted EBITDA Margin** | 11% - 13% | 13% - 14% | - The CFO stated the company remains committed to funding investments in innovation, customer relationships, and organizational scaling while delivering accelerated growth and improved profitability[34](index=34&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents Cellebrite's condensed consolidated financial statements, including income, balance sheets, cash flows, and GAAP to non-GAAP reconciliations [Condensed Consolidated Statements of (Loss) Income](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20%28Loss%29%20Income) Cellebrite's Q2 2023 revenue grew to $76.7 million, achieving operating income, but a significant financial expense resulted in a GAAP net loss of $32.3 million Consolidated Statements of (Loss) Income (U.S. Dollars in thousands) | Metric | Q2 2023 (Unaudited) | Q2 2022 (Unaudited) | H1 2023 (Unaudited) | H1 2022 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $76,684 | $62,573 | $147,918 | $124,958 | | **Gross Profit** | $63,653 | $49,475 | $122,481 | $100,877 | | **Operating Income (Loss)** | $4,623 | $(5,599) | $4,759 | $(7,545) | | **Net (Loss) Income** | $(32,348) | $33,197 | $(72,953) | $88,635 | | **Diluted (Loss) EPS** | $(0.17) | $0.17 | $(0.37) | $0.44 | Revenue Breakdown (U.S. Dollars in thousands) | Revenue Type | Q2 2023 (Unaudited) | Q2 2022 (Unaudited) | | :--- | :--- | :--- | | **Total Subscription** | $67,206 | $49,841 | | **Other Non-recurring** | $1,972 | $4,200 | | **Professional Services** | $7,506 | $8,532 | | **Total Revenue** | **$76,684** | **$62,573** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, Cellebrite's total assets increased to $425.9 million, while total liabilities rose to $408.3 million, decreasing shareholders' equity Key Balance Sheet Items (U.S. Dollars in thousands) | Metric | June 30, 2023 (Unaudited) | Dec 31, 2022 (Audited) | | :--- | :--- | :--- | | **Total Current Assets** | $337,405 | $295,931 | | **Total Assets** | $425,893 | $403,293 | | **Total Current Liabilities** | $204,506 | $207,777 | | **Total Liabilities** | $408,337 | $329,428 | | **Total Shareholders' Equity** | $17,556 | $73,865 | - The increase in total liabilities was primarily driven by a rise in long-term liabilities from **$121.7 million** to **$203.8 million**, largely due to remeasurement of Warrant, Restricted Sponsor Shares, and Price Adjustment Shares liabilities[51](index=51&type=chunk) [Condensed Consolidated Statements of Cash Flow](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) For H1 2023, Cellebrite generated **$29.1 million** in operating cash flow, a significant improvement, with cash and cash equivalents reaching **$110.5 million** Consolidated Statements of Cash Flow (U.S. Dollars in thousands) | Metric | H1 2023 (Unaudited) | H1 2022 (Unaudited) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $29,052 | $(14,610) | | **Net cash used in investing activities** | $(14,806) | $(41,992) | | **Net cash provided by financing activities** | $8,419 | $4,688 | | **Cash and cash equivalents at end of period** | $110,502 | $91,685 | - The positive shift in operating cash flow was aided by non-cash adjustments, including remeasurement of warrant and share liabilities, and a significant decrease in trade receivables[25](index=25&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Information](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Information) Cellebrite reconciles GAAP to non-GAAP metrics, adjusting Q2 2023 GAAP operating income of $4.6 million to $9.4 million non-GAAP, and a GAAP net loss of $32.3 million to a non-GAAP net income of $10.7 million Reconciliation of GAAP to Non-GAAP Operating Income (Loss) (U.S. Dollars in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **GAAP Operating Income (Loss)** | $4,623 | $(5,599) | $4,759 | $(7,545) | | **Share based compensation** | $4,600 | $3,605 | $9,057 | $6,463 | | **Amortization of intangible assets** | $840 | $664 | $1,636 | $1,328 | | **Non-GAAP Operating Income (Loss)** | $9,395 | $(936) | $15,048 | $1,698 | Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net Income (Loss) (U.S. Dollars in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **GAAP Net (Loss) Income** | $(32,348) | $33,197 | $(72,953) | $88,635 | | **Finance expense (income) from financial derivatives** | $38,160 | $(38,391) | $78,953 | $(94,739) | | **Share based compensation** | $4,600 | $3,605 | $9,057 | $6,463 | | **Non-GAAP Net Income (Loss)** | $10,715 | $(25) | $17,614 | $1,395 | [Other Information](index=4&type=section&id=Other%20Information) This section details Cellebrite's use of non-GAAP financial measures and KPIs, alongside cautionary statements regarding forward-looking information [Non-GAAP Financial Measures and Key Performance Indicators](index=4&type=section&id=Non-GAAP%20Financial%20Information%20and%20Key%20Performance%20Indicators) Cellebrite uses non-GAAP financial measures and KPIs like ARR and NRR to supplement GAAP results, offering clearer insights into operational performance - The company uses non-GAAP measures to offer investors and management greater visibility to the underlying performance of its business[15](index=15&type=chunk)[35](index=35&type=chunk) - Annual Recurring Revenue (ARR) is defined as the annualized value of active term-based subscription license contracts and maintenance contracts in effect at the end of a period[17](index=17&type=chunk) - Dollar-based Net Retention Rate (NRR) is calculated by dividing the recurring revenue from a base set of customers in the current period by the recurring revenue from the same customers in the prior period[40](index=40&type=chunk) [Caution Regarding Forward-Looking Statements](index=6&type=section&id=Caution%20Regarding%20Forward-Looking%20Statements) This report contains forward-looking statements regarding the company's 2023 financial outlook and future performance, subject to significant risks and uncertainties detailed in SEC filings - Forward-looking statements in the report include the **2023 financial outlook**, anticipated business trajectory, and plans for revenue growth and profitability[43](index=43&type=chunk) - These statements are subject to numerous risks and uncertainties, including technological changes, dependence on government agencies, and competition. The company directs investors to its Form 20-F for a full list of risk factors[43](index=43&type=chunk)

Cellebrite DI Ltd. (NASDAQ:CLBT) Q1 2023 Earnings Conference Call May 10, 2023 8:30 AM ET Company Participants Andrew Kramer - Vice President-Investor Relations Yossi Carmil - Chief Executive Officer Dana Gerner - Chief Financial Officer Conference Call Participants Jonathan Ho - William Blair Shaul Eyal - TD Cowen Tal Liani - Bank of America Doug Bruehl - JPMorgan Jamie Shelton - Deutsche Bank Louie DiPalma - William Blair Operator Welcome to the Cellebrite's First Quarter 2023 Financial Results Conference ...

| --- | --- | --- | --- | --- | |-------|---------------|-------|-------|-------| | | | | | | | | | | | | | | :: Cellebrite | | | | This prosental ion has been propared by Gallebrite DI Ltd. (the "Company") solely for informational purposes. N is not, and should not be assumed to be, complete. This pre is it a solicitation of an offer to buy securities. This presentation is not directed at, or intended for distribution to or use by, any person or entity that is a citizen jursdiction where such distribution, ...

Financial Performance - Revenue for Q1 2023 was $71.2 million, representing a 14% year-over-year increase, driven primarily by a 27% growth in subscription revenue[2] - Annual Recurring Revenue (ARR) reached $261.3 million, up 30% year-over-year, with a dollar-based net retention rate (NRR) of 128%[3][9] - GAAP net loss for Q1 2023 was $40.6 million, while Non-GAAP net income was $6.9 million, resulting in a Non-GAAP diluted EPS of $0.03[3][9] - Adjusted EBITDA for Q1 2023 was $7.3 million, reflecting a 10.3% adjusted EBITDA margin[9] - Total revenue for Q1 2023 was $71.234 million, compared to $62.385 million in Q1 2022, reflecting a year-over-year increase of approximately 14%[45] - Subscription services revenue for Q1 2023 was $47.367 million, up from $36.361 million in Q1 2022, indicating a growth of about 30%[45] - The company reported a net loss of $40.605 million for Q1 2023, compared to a net income of $55.438 million in Q1 2022[49] - Adjusted EBITDA for Q1 2023 was $7.304 million, an increase from $4.082 million in Q1 2022[49] - Operating income for Q1 2023 was $136,000, a significant improvement from an operating loss of $1.946 million in Q1 2022[45] - Non-GAAP net income improved to $6.899 million in March 2023 from $1.420 million in March 2022[57] - Gross profit for March 2023 was $58.828 million, up from $51.402 million in March 2022, reflecting a growth of 14.8%[54] - Operating expenses increased to $58.692 million in March 2023 from $53.348 million in March 2022, a rise of 10.4%[54] - Non-GAAP operating income for March 2023 was $5.653 million, compared to $2.634 million in March 2022, showing a significant increase[54] Future Projections - Full year 2023 revenue is projected to be between $305 million and $315 million, representing a 13-16% year-over-year growth[13] - Full year 2023 adjusted EBITDA is expected to be between $35 million and $40 million, with an expected margin of 11-13%[14] - December 2023 ARR is expected to be between $300 million and $310 million, representing 21-25% year-over-year growth[34] Customer and Market Insights - The company closed 21 large deals in Q1, each valued at $500,000 or more, indicating strong demand for its solutions[4] - A large national agency in Latin America increased its ARR by 13x to $1.6 million after expanding its licensing with Cellebrite[10] - The dollar-based net retention rate (NRR) is a key performance indicator that reflects customer recurring revenue growth[37][38] - The company anticipates continued success in increasing wallet share from existing customers and expanding its global customer base[33] Awards and Recognition - The company received Frost & Sullivan's 2022 North American Customer Value Leadership Award for its digital intelligence solutions[5] Financial Position - Total assets increased to $412.689 million in March 2023 from $403.293 million in December 2022, representing a growth of 2.4%[50] - Total liabilities rose to $373.332 million in March 2023, up from $329.428 million in December 2022, indicating an increase of 13.3%[50] - Cash and cash equivalents rose to $98.972 million in March 2023 from $87.645 million in December 2022, an increase of 12.6%[50] - Deferred revenues increased to $157.903 million in March 2023 from $152.709 million in December 2022, a growth of 3.4%[50] Research and Development - Research and development expenses for Q1 2023 were $21.131 million, compared to $19.576 million in Q1 2022, showing an increase of about 8%[45] Guidance and Confidence - The company reiterates its full-year 2023 guidance, indicating confidence in achieving its financial targets[33]

PART I [ITEM 3. KEY INFORMATION](index=11&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section outlines significant business, industry, and securities risks, including technological obsolescence, government contract dependence, and geopolitical factors [Risk Factors](index=12&type=section&id=D.%20Risk%20Factors) The company faces substantial risks including technological development, government sales dependence, intense competition, and personnel retention - The company's success is **highly dependent on its ability to continuously develop solutions** compatible with new products from OEMs and evolving security/encryption strategies[223](index=223&type=chunk)[265](index=265&type=chunk) - Sales to law enforcement and government agencies accounted for **approximately 90% of revenue** in 2020, 2021, and 2022, making the company materially dependent on this sector[266](index=266&type=chunk)[363](index=363&type=chunk) - The company faces **intense competition** from larger competitors with greater resources, industry consolidation, and potential new entrants[67](index=67&type=chunk)[273](index=273&type=chunk) - The company's **subscription-based revenue model** means a decline in new or renewed agreements may not be immediately reflected in revenue but would negatively affect future periods[216](index=216&type=chunk)[217](index=217&type=chunk) - The business is **highly dependent on key personnel**, particularly CEO Yossi Carmil, with loss or inability to retain staff potentially harming operations and growth[162](index=162&type=chunk)[163](index=163&type=chunk)[218](index=218&type=chunk) - As a **foreign private issuer incorporated in Israel**, the company is subject to **geopolitical risks** in the region, and its governance may differ from U.S. standards[400](index=400&type=chunk)[467](index=467&type=chunk)[442](index=442&type=chunk) [ITEM 4. INFORMATION ON THE COMPANY](index=53&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section provides a comprehensive overview of Cellebrite's Digital Intelligence (DI) solutions, history, core products, and growth strategies [History and Development](index=54&type=section&id=A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) Cellebrite DI Ltd. was incorporated in Israel in 1999, became publicly traded on Nasdaq in 2021, and details capital expenditures - The company was **incorporated in Israel in 1999** and became a **publicly traded company on Nasdaq on August 30, 2021**, via a merger with a SPAC[499](index=499&type=chunk) Capital Expenditures (2020-2022) | Fiscal Year | Capital Expenditures (in millions) | | :--- | :--- | | 2022 | $6.9 | | 2021 | $5.1 | | 2020 | $6.2 | [Business Overview](index=54&type=section&id=B.%20BUSINESS%20OVERVIEW) Cellebrite provides Digital Intelligence (DI) solutions for investigations, serving 7,000 customers with a comprehensive suite - Cellebrite provides a Digital Intelligence (DI) suite of solutions to **approximately 7,000 customers**, including government agencies and enterprise companies, for legally sanctioned investigations[533](index=533&type=chunk)[564](index=564&type=chunk) - The company's core offerings are structured around the investigation lifecycle: **Collect & Review** (data extraction), **Investigative Analytics** (AI-based insights), and **Investigative Management Solutions** (workflow and collaboration)[564](index=564&type=chunk) - Key competitive strengths include a large, entrenched install base with a **130% recurring revenue dollar-based net retention rate** as of Dec 31, 2022, and deep vertical expertise with **~9% of employees** having prior government agency experience[546](index=546&type=chunk)[17](index=17&type=chunk)[577](index=577&type=chunk) - The company's growth strategy focuses on **increasing penetration within its existing public sector customer base**, **developing innovative new solutions** including SaaS offerings, and **growing its private sector business**[579](index=579&type=chunk)[20](index=20&type=chunk)[581](index=581&type=chunk)[551](index=551&type=chunk) - The company faces **competition from various point solutions and consolidated providers** in both the public and private sectors, including Exterro, Magnet Forensics, MSAB, Nuix, and OpenText[57](index=57&type=chunk)[27](index=27&type=chunk) [Organizational Structure](index=68&type=section&id=C.%20ORGANIZATIONAL%20STRUCTURE) Cellebrite DI Ltd. is an Israeli company with wholly-owned or majority-owned subsidiaries located globally - Cellebrite DI Ltd. is the parent company with **subsidiaries located globally**, including in the U.S., Germany, Singapore, U.K., Japan, and Australia[622](index=622&type=chunk)[592](index=592&type=chunk) [Property, Plants and Equipment](index=68&type=section&id=D.%20PROPERTY,%20PLANTS%20AND%20EQUIPMENT) The company leases its main offices and a hardware factory in Israel, maintaining additional offices globally - Cellebrite's principal executive offices are **leased in Petah-Tikva, Israel**, and it operates a **leased hardware factory in Kiryat Malachi, Israel**, also maintaining offices globally[623](index=623&type=chunk)[560](index=560&type=chunk) [ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](index=68&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section details the company's financial performance, including revenue growth, net income, liquidity, and key accounting estimates [Operating Results](index=69&type=section&id=A.%20OPERATING%20RESULTS) Revenue increased 10% in 2022 driven by subscription growth, while operating income declined and net income rose significantly Key Financial Results (2021 vs. 2022) | Metric | 2022 ($ in millions) | 2021 ($ in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $270.7 | $246.2 | +10% | | Subscription Revenue | $216.0 | $183.3 | +18% | | Gross Profit | $219.9 | $203.7 | +8% | | Operating Income | $1.0 | $13.8 | -93% | | Net Income | $120.8 | $71.4 | +69% | | Adjusted EBITDA | $25.9 | $47.9 | -46% | - The **10% revenue growth** in 2022 was primarily driven by an **18% increase in subscription revenue**, reflecting the company's transition to a subscription-based model[54](index=54&type=chunk)[35](index=35&type=chunk) - **Operating expenses increased by 15% to $218.9 million** in 2022, with a **23% rise in R&D** and a **27% rise in Sales & Marketing**, reflecting investments in product development[675](index=675&type=chunk)[650](index=650&type=chunk)[676](index=676&type=chunk) - The **significant increase in net income to $120.8 million** was primarily due to **$119.7 million in net financial income**, mainly from the fair value remeasurement of warrant liabilities and other shares[36](index=36&type=chunk)[677](index=677&type=chunk) [Liquidity and Capital Resources](index=82&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company's liquidity as of December 31, 2022, included $206 million in cash and equivalents, with operating cash flow decreasing Cash Flow Summary (2021 vs. 2022) | Cash Flow Activity | 2022 ($ in thousands) | 2021 ($ in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,577 | $36,052 | | Net cash (used in) provided by investing activities | $(91,231) | $45,226 | | Net cash provided by (used in) financing activities | $13,970 | $(68,397) | - **Cash from operating activities decreased to $20.6 million** in 2022, primarily due to an increase in inventories and prepaid expenses, and a decrease in trade payables[94](index=94&type=chunk) - The company had **total commitments of $20.9 million** as of December 31, 2022, related to office and car lease arrangements[682](index=682&type=chunk)[657](index=657&type=chunk) [Research and Development, Patents and Licenses](index=85&type=section&id=C.%20RESEARCH%20AND%20DEVELOPMENT,%20PATENTS%20AND%20LICENSES,%20ETC.) The company's research and development spending consistently increased from 2020 to 2022, reflecting growing investment R&D Spending (2020-2022) | Year | R&D Spending ($ in millions) | | :--- | :--- | | 2022 | $80.6 | | 2021 | $65.5 | | 2020 | $54.4 | [Critical Accounting Estimates](index=85&type=section&id=E.%20CRITICAL%20ACCOUNTING%20ESTIMATES) This section outlines significant accounting judgments and estimates, including revenue recognition, share-based compensation, and fair value - Key accounting estimates involve **revenue recognition** (allocating transaction price based on standalone selling price), valuation of **share-based compensation**, **fair value of assets from business combinations**, and **income taxes**[687](index=687&type=chunk)[561](index=561&type=chunk) - For share-based compensation, the company uses the **Black-Scholes-Merton model** for options, with key assumptions including expected volatility and expected term[663](index=663&type=chunk)[104](index=104&type=chunk) - Warrants, restricted sponsor shares, and price adjustment shares are **classified as liabilities** and are **re-measured at fair value** at each balance sheet date, with changes recognized in earnings[106](index=106&type=chunk)[169](index=169&type=chunk)[667](index=667&type=chunk) [ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](index=88&type=section&id=ITEM%206.%20DIRECTORS,%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the company's leadership, compensation, board structure, and employee base, including executive officers and equity plans [Directors and Senior Management](index=89&type=section&id=A.%20DIRECTORS%20AND%20SENIOR%20MANAGEMENT) This subsection lists the company's executive officers and directors as of April 27, 2023, with their professional biographies Key Management and Directors | Name | Position | | :--- | :--- | | Yossi Carmil | Chief Executive Officer, Director | | Dana Gerner | Chief Financial Officer | | Ronnen Armon | Chief Products & Technologies Officer | | Haim Shani | Chairman of the Board | | Ryusuke Utsumi | Director | | Adam H. Clammer | Director | [Compensation](index=94&type=section&id=B.%20COMPENSATION) Aggregate compensation for executive officers and directors was approximately $10.0 million in 2022, detailed with equity plans - Aggregate compensation for executive officers and directors for the year ended December 31, 2022, was **approximately $10.0 million**, including salaries, benefits, and share-based compensation[177](index=177&type=chunk) 2022 Compensation for Covered Executives (Salary & Social Benefits) | Executive | Position | Salary Expenses ($ thousands) | Social Benefits ($ thousands) | | :--- | :--- | :--- | :--- | | Yossi Carmil | CEO | $490 | $209 | | Dana Gerner | CFO | $321 | $110 | | Leeor Ben-Peretz | CSO | $248 | $110 | | Arthur Veinstein | President, International | $352 | $15 | | Marque Teegardin | President, Americas | $315 | $84 | - The company maintains **several equity incentive plans** (2008, 2019, 2021) to grant options and RSUs, with significant options outstanding under the 2008 and 2019 Plans as of Dec 31, 2022[182](index=182&type=chunk)[741](index=741&type=chunk) - The **2021 Share Incentive Plan** is the current active plan, with **22,789,113 ordinary shares available** for future grant as of December 31, 2022[748](index=748&type=chunk) [Board Practices](index=109&type=section&id=C.%20BOARD%20PRACTICES) The company's board consists of nine directors with staggered terms, adhering to Nasdaq and Israeli corporate governance rules - The board of directors is comprised of **nine members**, divided into **three classes with staggered three-year terms**, and a **majority of the directors are independent** as defined by Nasdaq rules[201](index=201&type=chunk)[205](index=205&type=chunk) - The company has an **Audit Committee**, **Compensation Committee**, and **Nominating and Governance Committee**, with charters consistent with Israeli law and Nasdaq rules[791](index=791&type=chunk)[825](index=825&type=chunk)[864](index=864&type=chunk) - As an Israeli company, it is required to have **at least two external directors**, who must meet specific independence and qualification criteria under Israeli Companies Law[208](index=208&type=chunk)[209](index=209&type=chunk) - The company has adopted a **compensation policy compliant with Israeli law**, governing terms for office holders and requiring approval by committees and shareholders[802](index=802&type=chunk)[830](index=830&type=chunk) [Employees](index=127&type=section&id=D.%20EMPLOYEES) As of December 31, 2022, Cellebrite had 1,005 full-time employees globally, with many having prior government agency experience Employee Headcount by Function (as of Dec 31, 2022) | Function | Number of Employees | | :--- | :--- | | Research and Development | 357 | | Sales and Marketing | 301 | | General and Administrative | 191 | | Operations and Services | 156 | | **Total** | **1,005** | - **Approximately 9.2% of the company's employees** have previously worked for police, military, or intelligence agencies, providing deep domain expertise[877](index=877&type=chunk) [ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](index=127&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section details the company's ownership structure, with SUNCORPORATION as the largest shareholder, and related transactions Major Shareholders (as of early 2023) | Shareholder | Beneficial Ownership % | | :--- | :--- | | SUNCORPORATION | 49.10% | | IGP Saferworld, Limited Partnership | 16.76% | | True Wind Capital Management | 6.88% | - **SUNCORPORATION**, a Japanese public company, is the **principal shareholder** with significant influence over corporate matters[427](index=427&type=chunk)[454](index=454&type=chunk) - The company has a **distribution agreement with its major shareholder, SUNCORPORATION**, for the promotion and sale of its mobile solutions in Japan[887](index=887&type=chunk)[857](index=857&type=chunk) [ITEM 8. FINANCIAL INFORMATION](index=131&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section covers legal proceedings and the company's dividend policy, noting no material legal issues and no future dividends - The company is **not currently a party to any legal proceedings** that would have a material adverse effect on its business or financial condition[591](index=591&type=chunk)[915](index=915&type=chunk) - Cellebrite **does not anticipate paying cash dividends** in the foreseeable future and plans to retain earnings for operations and expansion, with distributions also limited by Israeli law[861](index=861&type=chunk)[915](index=915&type=chunk) [ITEM 10. ADDITIONAL INFORMATION](index=132&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section provides supplementary details, primarily focusing on material U.S. and Israeli tax considerations [Taxation](index=134&type=section&id=E.%20TAXATION) The company's tax considerations involve complex U.S. and Israeli regulations, including foreign corporation status and tax benefits - For U.S. tax purposes, the company is **not expected to be treated as a U.S. corporation under Section 7874** following its 2021 merger, though this is subject to complex rules and potential IRS challenge[474](index=474&type=chunk)[944](index=944&type=chunk) - The company believes it was **not a Passive Foreign Investment Company (PFIC)** for the 2022 taxable year but notes this is an annual factual determination and cannot be guaranteed for future years[963](index=963&type=chunk)[907](index=907&type=chunk) - In Israel, the company is **eligible for tax benefits as a 'Preferred Technological Enterprise'** under the Law for the Encouragement of Capital Investments, resulting in a **reduced corporate tax rate of 12%** on its 'Preferred Technology Income'[818](index=818&type=chunk)[1257](index=1257&type=chunk) - Dividends paid to non-Israeli residents are generally subject to a **25% withholding tax** (or 30% for a 'substantial shareholder'), which may be reduced by an applicable tax treaty[767](index=767&type=chunk) [ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=84&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to market risks, primarily from foreign currency exchange rate fluctuations and interest rate changes - The company's primary market risk is **foreign currency exchange risk**, as a significant portion of its operating costs are denominated in ILS while revenues are primarily in USD[99](index=99&type=chunk) - Cellebrite has established a **hedging program** using foreign currency forward contracts and options to reduce the impact of foreign exchange volatility on future cash flows[131](index=131&type=chunk)[99](index=99&type=chunk) - The company is exposed to **interest rate risk** on its cash, cash equivalents, and short-term investments, with a hypothetical 10% change impacting financial income by **$0.4 million** for 2022[100](index=100&type=chunk)[685](index=685&type=chunk) PART II [ITEM 15. CONTROLS AND PROCEDURES](index=158&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) This section addresses the company's internal controls, with management concluding effectiveness of disclosure and financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2022[814](index=814&type=chunk) - Based on an evaluation using the COSO framework, management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2022[998](index=998&type=chunk)[1026](index=1026&type=chunk) - As an emerging growth company, this annual report **does not include an attestation report** from the independent registered public accounting firm regarding internal control over financial reporting[1027](index=1027&type=chunk) [ITEM 16. CORPORATE GOVERNANCE AND OTHER DISCLOSURES](index=159&type=section&id=ITEM%2016.%20CORPORATE%20GOVERNANCE%20AND%20OTHER%20DISCLOSURES) This section covers corporate governance, including the audit committee financial expert, auditor change, and foreign private issuer practices - The Board of Directors has identified **Dafna Gruber** as an **'audit committee financial expert'** as defined by U.S. federal securities laws[1001](index=1001&type=chunk) - The company **changed its independent registered public accounting firm**, appointing Kost Forer Gabbay & Kasierer (a member of **Ernst & Young**) on April 14, 2022, following KPMG's decision not to stand for re-appointment[1049](index=1049&type=chunk) - As a **foreign private issuer**, Cellebrite **relies on home country (Israel) practices** for shareholder meeting quorum requirements and report distribution, which differ from Nasdaq's requirements[1037](index=1037&type=chunk) PART III [ITEM 18. FINANCIAL STATEMENTS](index=163&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the company's audited consolidated financial statements for 2020-2022, prepared under U.S. GAAP Consolidated Balance Sheet Highlights (as of Dec 31) | Account ($ in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash, cash equivalents, and short-term deposits | $138,980 | $181,565 | | Total Current Assets | $295,931 | $273,212 | | Goodwill & Intangible Assets, net | $38,083 | $38,057 | | **Total Assets** | **$403,293** | **$339,783** | | **Liabilities & Equity** | | | | Deferred Revenues (Current & Long-term) | $194,882 | $159,409 | | Warrant, Sponsor & Price Adj. Shares Liability | $63,731 | $180,594 | | **Total Liabilities** | **$329,428** | **$413,130** | | **Total Shareholders' Equity (Deficiency)** | **$73,865** | **$(73,347)** | Consolidated Statement of Income Highlights (Year Ended Dec 31) | Account ($ in thousands) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Total Revenue | $270,651 | $246,246 | $194,913 | | Gross Profit | $219,905 | $203,689 | $157,034 | | Operating Income | $1,044 | $13,822 | $9,218 | | Financial Income, net | $119,716 | $68,483 | $2,179 | | Net Income | $120,805 | $71,396 | $5,781 |

Cellebrite DI Ltd. (NASDAQ:CLBT) Q4 2022 Earnings Conference Call February 15, 2023 8:30 AM ET Company Participants Sabrina Mathews – Investor Relations Yossi Carmil – Chief Executive Officer Dana Gerner – Chief Financial Officer Conference Call Participants Jonathan Ho – William Blair Mike Cikos – Needham & Company Tal Liani – Bank of America Douglas Bruehl – J.P. Morgan Chase Jamie Shelton – Deutsche Bank Louie DiPalma – William Blair Operator Good day and thank you for standing by. Welcome to Cellebrite' ...

[Cellebrite Fourth Quarter 2022 Results Overview](index=1&type=section&id=Cellebrite%20Fourth%20Quarter%202022%20Results%20Overview) [Fourth Quarter 2022 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%202022%20Financial%20Highlights) Cellebrite's Q4 2022 revenue grew 9% to **$74.0 million**, with subscription revenue up 24% and Adjusted EBITDA reaching **$16.1 million** Q4 2022 Key Financial Metrics | Metric | Q4 2022 | YoY Change | | :--- | :--- | :--- | | **Total Revenue** | $74.0 million | +9% | | **Subscription Revenue** | $62.3 million | +24% | | **Adjusted EBITDA** | $16.1 million | N/A | | **Adjusted EBITDA Margin** | 21.8% | N/A | | **GAAP Gross Margin** | 83.6% | N/A | | **GAAP Diluted EPS** | $0.04 | N/A | | **Non-GAAP Diluted EPS** | $0.08 | N/A | - The recurring revenue dollar-based net retention rate was **130%** for the fourth quarter[42](index=42&type=chunk) [Full Year 2022 Financial Highlights](index=1&type=section&id=Full%20Year%202022%20Financial%20Highlights) Full year 2022 revenue grew 10% to **$270.7 million**, with ARR up **33%** to **$249 million**, though Adjusted EBITDA decreased Full Year 2022 Key Financial Metrics | Metric | Full Year 2022 | YoY Change | | :--- | :--- | :--- | | **Total Revenue** | $270.7 million | +10% | | **Subscription Revenue** | $216.0 million | +18% | | **Annual Recurring Revenue (ARR)** | $249 million | +33% | | **Adjusted EBITDA** | $25.9 million | N/A | | **Adjusted EBITDA Margin** | 10% | N/A | | **GAAP Net Income** | $120.8 million | N/A | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized strong market leadership and a successful subscription model transition, positioning for accelerated 2023 growth and profitability - CEO Yossi Carmil stated the company ended 2022 with solid results, fueled by industry-leading technology and investments in platform innovation and go-to-market strategy[2](index=2&type=chunk) - CFO Dana Gerner highlighted the successful transition to a subscription model, with **84%** of Q4 revenue from subscription licenses and a **33%** annual growth in ARR[22](index=22&type=chunk) - The company is positioned to increase its revenue growth rate and sustain ARR momentum in 2023, while aiming for its long-term EBITDA margin target of **20%** or greater[22](index=22&type=chunk) [Business and Operational Highlights](index=2&type=section&id=Business%20and%20Operational%20Highlights) [Key Business Developments in Q4 2022](index=2&type=section&id=Key%20Business%20Developments%20in%20Q4%202022) Cellebrite secured **29 large deals** including **$14 million** and **$10+ million** contracts, launching new cloud capabilities and partnerships against human trafficking - Closed **29 large deals**, each valued at **$500,000** or more[20](index=20&type=chunk) - Secured major contracts, including a **$14 million** deal with a leading law enforcement agency in Asia and a **$10+ million** deal with a major West European national police force[36](index=36&type=chunk)[59](index=59&type=chunk) - Launched new cloud workplace app collection capability for Cellebrite Endpoint Inspector to improve eDiscovery for corporate investigations[44](index=44&type=chunk) - Partnered with organizations like the GLAA and The Exodus Road to help combat forced labor and human trafficking[37](index=37&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) [Full Year 2023 Guidance](index=3&type=section&id=Full%20Year%202023%20Guidance) Cellebrite projects full year 2023 revenue of **$305-315 million**, ARR of **$300-310 million**, and Adjusted EBITDA of **$35.0-40.0 million** Full Year 2023 Financial Outlook | Metric | 2023 Guidance | YoY Growth | | :--- | :--- | :--- | | **Revenue** | $305 - $315 million | 13% - 16% | | **ARR** | $300 - $310 million | 21% - 25% | | **Adjusted EBITDA** | $35.0 - $40.0 million | N/A | | **Adjusted EBITDA Margin** | 11% - 13% | N/A | [Financial Statements](index=7&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Income](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Full year 2022 revenue increased to **$270.7 million**, gross profit rose, operating income decreased, but net income surged to **$120.8 million** due to financial income Full Year Income Statement Highlights (in thousands) | Account | 2022 | 2021 | | :--- | :--- | :--- | | **Total Revenue** | $270,651 | $246,246 | | **Gross Profit** | $219,905 | $203,689 | | **Operating Income** | $1,044 | $13,822 | | **Net Income** | $120,805 | $71,396 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2022, total assets increased to **$403.3 million**, liabilities decreased, and shareholders' equity turned positive to **$73.9 million** Balance Sheet Summary (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $87,645 | $145,973 | | **Total Assets** | $403,293 | $339,783 | | **Total Liabilities** | $329,428 | $413,130 | | **Total Shareholders' Equity (Deficiency)** | $73,865 | $(73,347) | [Condensed Consolidated Statements of Cash Flow](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Full year 2022 operating cash flow was **$20.6 million**, with a **$56.7 million** net decrease in cash due to investing activities Full Year Cash Flow Summary (in thousands) | Account | 2022 | 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $20,577 | $36,052 | | **Net cash (used in) provided by investing activities** | $(91,231) | $45,226 | | **Net cash provided by (used in) financing activities** | $13,970 | $(68,397) | | **Net (decrease) in cash and cash equivalents** | $(56,684) | $12,881 | [Reconciliation of GAAP to Non-GAAP Financial Information](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Information) This section reconciles GAAP to non-GAAP financial measures, adjusting for non-cash items, with full year 2022 GAAP net income of **$120.8 million** adjusted to **$19.7 million** non-GAAP Reconciliation of Net Income to Adjusted EBITDA (Full Year, in thousands) | Account | 2022 | 2021 | | :--- | :--- | :--- | | **Net Income (GAAP)** | $120,805 | $71,396 | | **Financial expense (income), net** | $(119,716) | $(68,483) | | **Tax expense (income)** | $(45) | $10,909 | | **Share based compensation** | $13,708 | $6,480 | | **Depreciation & Amortization** | $9,194 | $7,007 | | **Adjusted EBITDA (Non-GAAP)** | $25,906 | $47,905 | [Supplemental Information](index=4&type=section&id=Supplemental%20Information) [Key Performance Indicators (KPIs)](index=5&type=section&id=Key%20Performance%20Indicators%20(KPIs)) The company uses Annual Recurring Revenue (ARR) and Dollar-Based Net Retention Rate (NRR) as key performance indicators for subscription and customer revenue growth - Annual Recurring Revenue (ARR) is defined as the annualized value of active term-based subscription license contracts and maintenance contracts in effect at the end of a period[25](index=25&type=chunk) - Dollar-based Net Retention Rate (NRR) measures recurring revenue growth from existing customers over a trailing four-quarter period[66](index=66&type=chunk) [Non-GAAP Financial Information Explanation](index=4&type=section&id=Non-GAAP%20Financial%20Information%20Explanation) Cellebrite uses non-GAAP measures to provide a clearer view of operational performance by excluding non-cash and acquisition-related adjustments - The company uses non-GAAP measures to provide a more meaningful comparison of its operational performance from period to period[8](index=8&type=chunk)[63](index=63&type=chunk) - Adjustments typically exclude non-cash expenses like share-based compensation and amortization of intangible assets, as well as acquisition-related costs and the impact of financial instrument remeasurement[8](index=8&type=chunk)[24](index=24&type=chunk)[48](index=48&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to various risks and uncertainties, including technological changes, market competition, and macroeconomic conditions - The document includes forward-looking statements regarding revenues, earnings, performance, and strategies, which are subject to risks and uncertainties[11](index=11&type=chunk) - Key risk factors include the ability to keep pace with technology, dependence on law enforcement and government agencies, intense competition, and macroeconomic conditions[11](index=11&type=chunk)

::* Cellebrite Q3 '22 Earnings Call 17 November 2022 Disclaimer This presentation has been prepared by Cellebrite DI Ltd. (the "Company") solely for informational purposes. It is not, and should not be assumed to be, complete. This presentation is not an offer to sell securities, nor is it a solicitation of an offer to buy securities. This presentation is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country ...

Cellebrite DI Ltd. (NASDAQ:CLBT) Q3 2022 Earnings Conference Call November 17, 2022 8:30 AM ET Company Participants Sabrina Mathews - IR Yossi Carmil - CEO Dana Gerner - CFO Conference Call Participants Jonathan Ho - William Blair Tomer Zilberman - Bank of America Mike Cikos - Needham Louie DiPalma - William Blair Operator Good day and thank you for standing by. Welcome to the Cellebrite Q3 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there ...

Exhibit 99.1 Cellebrite Announces Third Quarter 2022 Results ARR of $232 million, up 35% year-over-year Third Quarter revenue of $71.7 million, Increase 9% year-over-year PETAH TIKVA, ISRAEL, and TYSONS CORNER, VA, November 17, 2022 – 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 nine months ending September 30, 2022. "We are pleased to report a solid third quarter, delivering strong ...