Core Viewpoint - Cellebrite has announced its agreement to acquire Corellium for an enterprise value of $170 million in cash, enhancing its capabilities in digital investigations and security for smart devices [2][3] Company Overview - Cellebrite is a global leader in digital investigative solutions, focusing on enhancing digital investigations and intelligence gathering to accelerate justice [6] - Corellium specializes in Arm hypervisor virtualization, providing solutions for security and developer teams to build, test, and secure software for mobile, automotive, and IoT devices [7] Acquisition Details - The acquisition is valued at $170 million, with $20 million converted to equity at closing, and an additional $30 million contingent on performance milestones over the next two years [2] - The deal is expected to close in summer 2025, pending approval from the Committee on Foreign Investment in the United States [2] Strategic Benefits - The combination of Cellebrite and Corellium is expected to set a new standard for digital investigations and enhance the security of Arm-based devices across various applications [1] - Corellium's technology will broaden Cellebrite's Total Addressable Market (TAM) in both public and private sectors, enhancing its Digital Investigation Platform and mobile vulnerability research capabilities [1][2] Technological Advancements - The acquisition will enable accelerated identification of mobile vulnerabilities and exploits, and provide an industry-first ability to visualize and interact with virtual devices [4] - Corellium's virtualization platform will enhance DevSecOps efficiency across all Arm-based devices, facilitating the development of high-performance, secure mobile applications and IoT devices [4][1]

Summary of Cellebrite DI (CLBT) FY Conference - June 04, 2025 Company Overview - **Company**: Cellebrite DI (CLBT) - **Industry**: Digital Forensics - **Market Position**: Established leader in the digital forensics market with 15 years of experience, serving 7,000 customers globally, including 5,300 law enforcement and defense agencies [12][13][24] Core Insights and Arguments - **Growth and Profitability**: The company has achieved consistent top-line growth, profitability, and positive cash flow without external funding [12] - **Digital Evidence Importance**: In 90% of cases, law enforcement relies on digital evidence, highlighting the need for advanced investigative tools [14] - **Technological Advancements**: The company emphasizes the necessity of technology to manage the increasing complexity and volume of digital data [15][16] - **Product Offerings**: Key products include: - **Insights**: Most utilized solution for accessing and extracting data from locked devices, including deleted and hidden data [18][19] - **Guardian**: A SaaS solution that enhances collaboration between investigators and forensic examiners, facilitating real-time data review [21][22] - **Pathfinder**: Supports multi-phone investigations and case narrative development [23] Market Dynamics - **Customer Base**: The company is selective in its customer engagements, focusing on ethical guidelines and strategic partnerships [24] - **Growth Potential**: Current penetration in investigative units is around 5%, indicating significant room for growth as agencies modernize their digital investigation capabilities [25][30] - **Budget Constraints**: Despite stagnant budgets in law enforcement, the company has maintained a compound annual growth rate of 30% over the past five years [33] Financial Performance - **Strong Q1 Results**: The company reported strong financial performance with expectations of continued ARR growth between 45% to 50% [26] - **Cash Flow**: Approximately $500 million generated from operations, supporting both organic and inorganic growth [26] Future Outlook - **Cloud Transition**: 20% of business currently generated from cloud-based solutions, with plans to increase this as customers transition from on-premise to cloud environments [29][39] - **AI Integration**: The company is actively integrating AI capabilities into its products, focusing on enhancing investigative processes while ensuring trust in AI outcomes [41][43] - **Competitive Landscape**: The company differentiates itself from competitors like Axon's evidence.com by focusing on the investigative process rather than merely data storage [52] Additional Considerations - **Ethical Use of Technology**: The company is aware of the potential misuse of AI and emphasizes the importance of ethical considerations in its technology [48] - **Future Innovations**: Continuous development of features such as deep fake analysis capabilities and AI-driven insights to enhance investigative efficiency [50][41] This summary encapsulates the key points discussed during the conference, highlighting Cellebrite's strategic positioning, product offerings, market dynamics, and future growth potential.

Cellebrite DI (CLBT) 2025 Conference Summary Company Overview - **Company**: Cellebrite DI (CLBT) - **Industry**: Digital Forensics and Investigative Solutions - **Business Focus**: Provides investigative solutions primarily to law enforcement agencies and private sector clients, focusing on digital evidence collection and analysis [2][4][5] Core Business Transition - Transitioned from a business model based on perpetual licenses to a subscription model, enhancing cloud-based and SaaS offerings [5][6] - Historically profitable and cash-generative, with no external cash raised for growth prior to going public [4][5] Market Dynamics - **Public Sector Focus**: 90% of business is in the public sector, with federal government accounting for 17% of total business [24][12] - **Impact of Federal Policies**: Current federal government changes have created a temporary headwind, but future spending is expected to be a tailwind as agencies prepare for budget allocations [12][14][16] - **Tariff Impact**: Minimal impact from tariffs as the majority of sales are software-based [10][11] Growth Opportunities - Anticipated growth in federal government contracts, with a focus on integrating into various public safety spending bills [13][14][18] - Expansion into European markets, particularly in defense and intelligence sectors, driven by increased funding for border control and crime prevention [19][20][26] - Opportunities for upselling and cross-selling within existing customer bases, particularly as agencies modernize their investigative workflows [30][34] Challenges and Solutions - Increasing complexity of data and operational inefficiencies in law enforcement necessitate advanced technological solutions [31][33] - The need for better tools to manage growing data volumes and improve collaboration among investigators [33][34] - Addressing the public safety gap through enhanced technology to combat rising crime rates [45][46] Financial Outlook - Targeting to become a $1 billion company through organic growth and acquisitions, with a strong balance sheet of over $500 million in cash and zero debt [49][50][52] - Continued focus on M&A to expand market reach and enhance technology offerings [51][52] Conclusion - The company is optimistic about future growth opportunities, particularly in federal and international markets, while addressing the challenges faced by law enforcement agencies [53][54]

Financial Data and Key Metrics Changes - The market for Celebrite's solutions is estimated to exceed $16 billion globally, with digital forensics growing historically at 15% to 20% and analytics and management components growing at 35% to 50% [5][51] - Celebrite's annual recurring revenue (ARR) growth is primarily driven by upselling to existing customers, with new customers contributing only about 1.5% to ARR growth [62][63] - The Guardian solution has seen over 100% growth for three consecutive quarters, while Pathfinder is growing slightly faster than the average growth of the entire installed base [63] Business Line Data and Key Metrics Changes - Celebrite services approximately 7,000 customers globally, including 5,300 public sector agencies and 1,700 enterprises, with a small percentage currently utilizing the Guardian or Pathfinder solutions [6][52] - The transition to the new Insights platform has exceeded expectations, with 30% of the installed base already transitioned by the end of Q1, and an expectation to reach 50% by year-end [85][86] Market Data and Key Metrics Changes - The digital forensics market is moving into its teenage years of growth, while management and analytics components are still in their infancy [5][51] - The complexity of data investigations is increasing at a rate of approximately 15% annually, while the headcount of police forces is only growing by 2% to 3% [4][48] Company Strategy and Development Direction - Celebrite aims to bridge the "safety gap" in law enforcement through technology, addressing the growing complexity and backlog in digital investigations [4][48] - The company is shifting from per-seat pricing to more volume and value-based pricing, particularly for cloud-related offerings, allowing smaller customers to access the same capabilities as larger agencies [87] Management's Comments on Operating Environment and Future Outlook - Management noted a level of uncertainty regarding government spending, but they expect this to convert into a meaningful tailwind as new spending plans are debated in the Senate [67] - The company believes that the current headwinds in procurement processes will eventually turn into opportunities as government agencies adapt to new spending pressures [21][24] Other Important Information - Celebrite has a dedicated internal AI innovation team that is focused on integrating AI into their solutions while ensuring that evidence generation remains under the control of investigators [73][75] - The company has been successful in accessing both iOS and Android devices, with a strong emphasis on maintaining broad coverage across various phone models [68][69] Q&A Session Summary Question: Can you provide more granularity on the ARR growth during the first quarter? - Most of the ARR growth comes from upselling to existing customers, with new customers contributing only about 1.5% [62][63] Question: Can you elaborate on the changes in procurement processes and government spending? - There is ongoing uncertainty in government spending, but the pipeline has grown meaningfully, aligning with new spending plans for defense and civilian agencies [66][67] Question: How does Celebrite handle new model releases, particularly with iOS and Android? - Celebrite has a strong track record in both iOS and Android, focusing on broad coverage of devices to meet law enforcement needs [68][69]

Company Participation in Investor Conferences - Cellebrite plans to participate in several investor conferences in May and June 2025, including the Craig-Hallum Institutional Investor Conference on May 28, TD Cowen 52 Annual Technology, Media & Telecom Conference on May 29, Bank of America 2025 Global Technology Conference on June 3, William Blair 45 Annual Growth Stock Conference on June 4, and D.A. Davidson Inaugural Consumer & Technology Conference on June 10 [1]. Executive Representation - The executives representing Cellebrite at these conferences will include Dana Gerner, Chief Financial Officer, and Andrew Kramer, Vice President of Investor Relations [1]. Conference Formats and Webcast Availability - The conferences will feature various formats, including 1x1 meetings and fireside chats, with specific presentation times noted for each event. Webcast links for the fireside chats and management presentations are available on Cellebrite's investor relations microsite [1][2]. Company Mission and Services - Cellebrite's mission is to enhance digital investigations and intelligence gathering to accelerate justice globally. The company offers an AI-powered Digital Investigation Platform that allows lawful access, collection, analysis, and sharing of digital evidence while preserving data privacy [3]. Client Base - Thousands of public safety organizations, intelligence agencies, and businesses utilize Cellebrite's digital forensic and investigative solutions, which are available through cloud, on-premises, and hybrid deployments [3]. Contact Information - Investor relations inquiries can be directed to Andrew Kramer, Vice President of Investor Relations, while media inquiries can be directed to Jackie Labrecque, Senior Manager of Content Strategy and Operations [4].

Financial Data and Key Metrics Changes - Celebrite achieved a 23% year-on-year growth in Annual Recurring Revenue (ARR), reaching $408 million [26] - Adjusted EBITDA grew by 34% year-on-year, resulting in a 22% margin [8] - First quarter revenue was $107.5 million, a 20% increase from the previous year, primarily driven by a 21% growth in subscription revenue [30] - Non-GAAP net income was $26.2 million, with diluted non-GAAP EPS growing by 25% [32] Business Line Data and Key Metrics Changes - The Insights product family drove the majority of net ARR expansion, with a significant uplift from transitioning legacy digital forensics licenses [28] - Guardian's ARR growth rate exceeded 100% for the third consecutive quarter, indicating strong adoption [30] - Pathfinder is growing in line with the core business, with new enhancements expected to change its adoption trajectory [78] Market Data and Key Metrics Changes - The Americas region grew by 27%, with strong performance in state and local government and Latin America [27] - EMEA experienced a 15% growth, while Asia Pacific saw a 28% increase in ARR [27] - The U.S. Federal segment showed modest shortfalls, impacting overall performance [10] Company Strategy and Development Direction - Celebrite is focused on growth while managing spending to support bottom-line objectives, with a commitment to expanding its product offerings in AI and cloud technologies [24][8] - The company is doubling down on the intelligence and defense sectors, responding to increased demand driven by geopolitical factors [14][75] - Celebrite is actively pursuing FedRAMP authorization to enhance its federal business opportunities [59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, citing an expanding pipeline and the potential for recovery in federal spending [13][36] - The company remains cautious about the federal spending environment but sees opportunities for growth in intelligence and defense sectors [12][90] - Management highlighted the importance of their solutions in addressing rising crime rates and the sophistication of technology used in criminal activities [52] Other Important Information - Celebrite held its first user conference, attracting approximately 700 attendees from various agencies and enterprises [18] - The company is in the process of searching for a new CEO, ensuring that operations continue effectively during this transition [21] - Celebrite's cash and investments totaled $509.8 million, reflecting strong financial health [34] Q&A Session Summary Question: Is there any deterioration in the demand environment? - Management noted no material change in leadership decision-making, with optimism stemming from an uptick in pipeline opportunities [42][43] Question: What visibility is there regarding deal slippage? - Management indicated that while some deals are being deferred, the overall pipeline is improving, and they expect clarity post-Memorial Day [48][90] Question: Update on FedRAMP certification timing? - Management is targeting the end of Q3 for FedRAMP certification, pending sponsorship from federal agencies [59] Question: Insights on EMEA efforts? - Management emphasized the importance of global presence and commitment to the EMEA market, highlighting recent executive visits to strengthen relationships [66] Question: Why not embed more conservatism in the second half guidance? - Management expressed confidence in the pipeline and the necessity of their software, believing that demand will rebound in the second half [71][75] Question: Performance of the Pathfinder product? - Pathfinder is growing in line with the core business, with new enhancements expected to boost adoption [78] Question: Specific items in the Memorial Day budget? - Management identified several key programs related to security and crime prevention that are expected to be funded [85]

Financial Data and Key Metrics Changes - Celebrite achieved a 23% year-on-year growth in Annual Recurring Revenue (ARR), reaching $408 million [26] - Adjusted EBITDA grew by 34% year-on-year, resulting in a 22% margin [8][32] - First quarter revenue was $107.5 million, a 20% increase from the previous year, primarily driven by a 21% growth in subscription revenue [30] - Non-GAAP net income was $26.2 million, with diluted non-GAAP EPS growing by 25% [33] Business Line Data and Key Metrics Changes - The Insights product family drove the majority of net ARR expansion, with a significant uplift from transitioning legacy digital forensics licenses [28] - Guardian's ARR growth rate exceeded 100% for the third consecutive quarter, indicating strong adoption [11][30] - Pathfinder is growing in line with the core business, with new enhancements expected to change its adoption trajectory positively [78] Market Data and Key Metrics Changes - The Americas region grew by 27%, with strong performance in state and local government and Latin America [27] - EMEA experienced a 15% expansion, while Asia Pacific saw a 28% growth [27] - The U.S. Federal segment faced modest shortfalls, impacting overall performance [10][26] Company Strategy and Development Direction - Celebrite is focused on growth while managing spending to support bottom-line objectives, with a commitment to expanding its capabilities in AI and cloud technologies [8][24] - The company is doubling down on the intelligence and defense sectors, responding to increased demand driven by geopolitical factors [14][75] - Celebrite is actively pursuing FedRAMP authorization to enhance its federal business opportunities [58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, citing a growing pipeline and the potential for recovery in federal spending [13][35] - The company remains cautious about the federal sector's spending environment but sees opportunities for growth in intelligence and defense [12][90] - Management highlighted the importance of their software in addressing rising crime rates and the sophistication of technology used in criminal activities [43][52] Other Important Information - Celebrite held its first user conference, attracting approximately 700 attendees from various agencies and enterprises [18] - The company announced a new spring 2025 release featuring cloud foundation and AI-powered innovations [19] - Celebrite's cash and investments totaled $509.8 million, reflecting a strong balance sheet [34] Q&A Session Summary Question: Is there any deterioration in the demand environment? - Management noted no material change in leadership decision-making and expressed optimism about the pipeline and new opportunities surfacing [42][44] Question: What is the visibility on deal closures? - Management indicated that while there is some slippage, the pipeline is growing, and new projects are accelerating [48][52] Question: Update on FedRAMP certification timing? - Management expects to achieve FedRAMP authorization to operate by the end of Q3 2025, pending sponsorship from a federal agency [59][61] Question: Insights on EMEA efforts? - Management emphasized the importance of demonstrating commitment to global operations and meeting with customers in key regions [66] Question: Why not embed more conservatism in the second half guidance? - Management expressed confidence in the pipeline and the necessity of their software, indicating a belief in a strong second half rebound [71][73]

Financial Data and Key Metrics Changes - Celebrite achieved a 23% year-on-year growth in Annual Recurring Revenue (ARR) for Q1 2025, reaching $408 million [24] - Adjusted EBITDA grew by 34% year-on-year, resulting in a 22% margin [7] - The company reported Q1 revenue of $107.5 million, a 20% increase from the previous year, primarily driven by a 21% growth in subscription revenue [28] - Non-GAAP net income for Q1 was $26.2 million, with diluted non-GAAP EPS growing by 25% [30] Business Line Data and Key Metrics Changes - The Insights product family drove the majority of net ARR expansion, with a notable transition from legacy digital forensics licenses [26] - The Guardian product saw over 100% year-on-year ARR growth for the third consecutive quarter, indicating strong adoption [10][28] - Pathfinder's growth is in line with the core business, with new enhancements expected to improve its adoption trajectory [78] Market Data and Key Metrics Changes - The Americas region grew by 27%, with strong performance in state and local government and Latin America [25] - EMEA experienced a 15% expansion, while Asia Pacific saw a 28% growth in ARR [25] - The U.S. Federal segment faced modest shortfalls, impacting overall performance [9] Company Strategy and Development Direction - Celebrite remains committed to growth while managing spending to support bottom-line objectives [7] - The company is focusing on expanding its presence in the intelligence and defense sectors, which are expected to see increased demand due to geopolitical factors [13][76] - The ongoing CEO search is being conducted with a focus on securing a leader who can drive the company's mission of enhancing public safety [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, citing an expanding pipeline and the traditionally strong seasonality of government spending [12][34] - The company anticipates a recovery in the U.S. Federal sector, despite current spending constraints [34] - Management highlighted the critical need for Celebrite's solutions in combating sophisticated crime, reinforcing the company's market position [42][50] Other Important Information - Celebrite's gross retention rate held steady at 92%, with standout retention levels in the U.S. and Asia Pacific [25] - The company ended Q1 with $509.8 million in cash and equivalents, reflecting a strong balance sheet [31] - Celebrite's cloud-enabled offerings are rapidly approaching 20% of total ARR, showcasing the shift towards cloud solutions [18] Q&A Session Summary Question: Is there any deterioration in the demand environment? - Management noted no material change in leadership decision-making and expressed optimism about the pipeline and new opportunities surfacing [40][41] Question: What visibility is there regarding deal slippage? - Management indicated that while there has been some deferral in new business, the pipeline is growing, and they expect clarity post-Memorial Day [88][90] Question: Update on FedRAMP certification timing? - Management is targeting FedRAMP authorization to operate by the end of Q3 2025, pending sponsorship from federal agencies [56][58] Question: Insights on EMEA efforts? - The executive team has engaged directly with customers in the UK and Germany to demonstrate commitment and strengthen relationships [62][66] Question: Corporate opportunity performance? - The corporate segment is growing in line with the enterprise market, with significant wins from Fortune 50 customers [98]

Group 1: Earnings Performance - Cellebrite DI Ltd. reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, and up from $0.08 per share a year ago, representing an earnings surprise of 11.11% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $115.93 million, and for the current fiscal year, it is $0.43 on revenues of $485.74 million [7] Group 2: Revenue Performance - Cellebrite DI Ltd. posted revenues of $107.55 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.03%, but up from $89.58 million year-over-year [2] - The company has topped consensus revenue estimates three times over the last four quarters [2] Group 3: Stock Performance and Outlook - Shares of Cellebrite DI Ltd. have declined approximately 8.7% since the beginning of the year, while the S&P 500 has gained 0.1% [3] - The company's earnings outlook and management commentary will be crucial for understanding future stock movements [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 4: Industry Context - The Internet - Software industry, to which Cellebrite DI Ltd. belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, GitLab Inc., is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year change of +400% [9]

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 or other jurisdiction where such distribution, public ...