Cellebrite DI .(CLBT) - 2023 Q2 - Quarterly Report

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]