Cellebrite DI Ltd. (CLBT) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock ...

Have you been paying attention to shares of Cellebrite DI Ltd. (CLBT) ? Shares have been on the move with the stock up 19.1% over the past month. The stock hit a new 52-week high of $16.42 in the previous session. Cellebrite DI Ltd. has gained 72.8% since the start of the year compared to the 10% move for the Zacks Business Services sector and the 18.9% return for the Zacks Technology Services industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, as it has ...

Financial Data and Key Metrics Changes - The company reported a 26% year-on-year growth in Annual Recurring Revenue (ARR) to $346 million at the end of June 2024, with a gross retention rate of 91% [21][22] - Revenue for Q2 2024 increased by 25% year-on-year to $95.7 million, primarily driven by a 27% growth in subscription software revenue [22][24] - Adjusted EBITDA for Q2 was $21.6 million, representing a margin of 23%, up from 15% a year ago [24] Business Line Data and Key Metrics Changes - The ARR growth was significantly driven by the adoption of Inseyets and expansion within the existing customer base [21] - Subscription revenue accounted for 89% of total revenue, with expectations to remain in the mid-to-high 80% range [22] - ARR from cloud and SaaS-based solutions nearly doubled over the past year, now generating low-teens as a percentage of total ARR, up from high-single digits [17] Market Data and Key Metrics Changes - The Americas represented 53% of total ARR, followed by EMEA at 35% and Asia Pacific at 12%, with all major regions experiencing ARR growth rates above 20% [22] - The company anticipates healthy spending by U.S. federal agency customers in Q3, coinciding with the end of their fiscal year in September [30] Company Strategy and Development Direction - The formation of Cellebrite Federal Solutions aims to expand business with the U.S. federal government, enhancing the company's ability to engage directly with federal customers [6][8] - The company is focusing on leveraging AI capabilities within its products to improve investigative speed and efficiency, aligning resources to maximize value creation [9][10] - A partnership with Relativity aims to enhance data collection and management for corporate investigations, expected to accelerate growth in the private sector [16][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential, particularly in the federal market, with initial financial benefits from Cellebrite Federal Solutions expected to accrue in 2025 [8][43] - The company raised its revenue outlook for 2024, reflecting increased customer commitments and a favorable product mix [28][29] - Management noted that the competitive landscape remains stable, with no significant changes observed in the quarter [48] Other Important Information - The company announced a broad warrant redemption program covering 20 million public and 9.7 million private warrants, aimed at optimizing capital structure and improving trading liquidity [12][26] - The company appointed a new Chief Information Officer and added a technology executive to the Board, enhancing its leadership team [19] Q&A Session Summary Question: Confirmation on Inseyets upgrade targets - Management confirmed that the target is both a dollar-based and a number of customer goal, expecting to exceed the 2024 upgrade target by 50% [33] Question: Drivers of net retention rate decline - Management explained that the net retention rate is typically two points below ARR growth, with new customer contributions supporting long-term growth [35] Question: Contract duration and multi-year commitments - Management noted an increase in multi-year agreements, particularly among strategic accounts, indicating a trend towards longer commitments [37][38] Question: Impact of CyTech acquisition on outlook - The impact of the CyTech acquisition on Q3 and Q4 is minimal, mainly affecting services revenue and adjusted EBITDA [41] Question: Federal government traction and measurement - Management indicated that the federal sector accounted for 19% of ARR in 2023, with expectations for significant growth through direct engagement with federal agencies [42] Question: Cloud revenue mix - Management stated that cloud revenue is expected to represent a larger percentage of revenue and ARR over the coming quarters [46] Question: Competitive landscape and Magnet Forensics - Management expressed confidence in their market position, noting no material changes in competition and highlighting their end-to-end solution as a competitive advantage [48] Question: Inseyets rollout and premium penetration - Management reported an increase in premium solution adoption, with expectations for continued strong adoption in the coming years [50] Question: Economics of Relativity partnership - Management highlighted the substantial potential for business increase through the partnership, aiming to leverage joint marketing and improve customer workflows [57]

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Group 1: Earnings Performance - Cellebrite DI Ltd. reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and up from $0.05 per share a year ago, representing an earnings surprise of 25% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - Revenue for the quarter ended June 2024 was $95.71 million, surpassing the Zacks Consensus Estimate by 4.11%, and up from $76.68 million year-over-year [2] Group 2: Stock Performance - Cellebrite DI Ltd. shares have increased approximately 61% since the beginning of the year, significantly outperforming the S&P 500's gain of 14.4% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $94.78 million, and for the current fiscal year, it is $0.34 on revenues of $378.4 million [7] - The estimate revisions trend for Cellebrite DI Ltd. is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Group 4: Industry Context - The Technology Services 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] - Braze, Inc., another company in the same industry, is expected to report a quarterly loss of $0.03 per share, with revenues projected to be $141.08 million, reflecting a year-over-year increase of 22.6% [9]

TYSONS CORNER, Va. and PETAH TIKVA, Israel, Aug. 15, 2024 (GLOBE NEWSWIRE) -- Cellebrite DI Ltd. (Nasdaq: CLBT) ("Cellebrite," the "Company" or "we"), a global leader in premier Digital Investigative solutions for the public and private sectors, announced today that it will redeem all of its warrants (the "Warrants") to purchase ordinary shares of the Company (the "Ordinary Shares") that remain outstanding at 5:00 p.m. New York City time on September 16, 2024 (the "Redemption Date") for a redemption price o ...

TYSONS CORNER, Va. and PETAH TIKVA, Israel, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Cellebrite (NASDAQ: CLBT), a global leader in premier Digital Investigative solutions for the public and private sectors, today announced the appointment of Sigalit Shavit as Chief Information Officer (CIO) who begins her role today, August 1, 2024. Shavit joins the Company's Leadership Team, bringing with her more than 30 years of experience to Cellebrite's information technology and security team. In this newly established posit ...

Core Insights - Relativity and Cellebrite have formed a strategic partnership to enhance mobile device collection, processing, and review for legal data use cases, aiming to improve efficiency and usability of mobile evidence [1][12] - The collaboration builds on a history of integration, including the direct integration of RelativityOne and Cellebrite Legal View, and aims to drive innovation in mobile data e-discovery [2][9] Company Overview - Relativity is a global leader in legal technology, providing software solutions that help users manage large volumes of data and identify key issues during litigation and investigations, with over 300,000 users across approximately 40 countries [7] - Cellebrite specializes in digital investigative solutions, focusing on enabling customers to protect lives, accelerate justice, and preserve privacy, with a mission to streamline intelligence processes in legally sanctioned investigations [3][11] Product Integration - The partnership will result in Cellebrite being the only mobile collection provider to natively integrate its offerings into RelativityOne Collect, allowing for remote mobile device collections to be managed directly within the platform [3][9] - The integration will facilitate automatic conversion of data from Cellebrite's proprietary UFD file format to Relativity Short Message Format (RSMF), enhancing the user experience and ensuring accurate processing of mobile data [3][12] Market Demand - The legal industry is increasingly reliant on mobile data, with a significant majority of cases requiring mobile data collection, highlighting the importance of innovative solutions in this area [6] - The collaboration is expected to address the growing demand for efficient and effective mobile data management solutions in the legal sector [12] Future Developments - An Advanced Access program for the Remote Mobile Collection and Conversion integration is set to launch in the U.S. this month, with general availability expected in fall 2024 [10]

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cellebrite DI Ltd. passes the test. Thus, it seems as though Cellebrite DI Ltd. shares could have potential in the weeks and months to come. Earnings were strong last quarter. SPX Technologies, Inc. beat our consensus estimate by 17.92%, and for the current fiscal year, SPXC is expected to post earnings of $5.37 per share on revenue of $2 billion. The Technology Service ...

The stock jumped after the announcement of the launch of Cellebrite Federal Solutions and the acquisition of Cyber Technology Services. The acquisition provides extensive domain expertise in cybersecurity, digital forensics and incident response services. For Cellebrite DI Ltd., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye ...