Cellebrite Di Ltd. · NASDAQ:CLBT
Cellebrite Di — SPAC Merger (June 2021)
55 slides from Cellebrite Di's SPAC merger presentation, June 2021
Slide 1: Cellebrite Analyst Day June 2021
y Cellebrite Analyst Day June 2021
Slide 2: Team and presenters
Team and presenters Yossi Carmil Chief Executive Officer Dana Gerner Chief Financial Officer Adam Clammer Founding Partner, True Wind Capital ~ @ @te Brandon Van Buren Partner, True Wind Capital SIEMENS @ BOSCH = tocisrics EY Ga TRUE WIND KKR Ga TRUE WIND KKR capitalG Spent 17 years with Cellebrite,
Slide 3: Disclaimer
Disclaimer ‘This presentation (“Presentation”) contains proprietary and confidential information of Cellebrite DI Ltd. ("Cellebrite” or the “Company”} and TWC Tech Holdings Il Corp. (“TWC II"] and the entire contents should be considered “Confidential Information.” This Presentation is made solely f
Slide 4: Disclaimer: Use of Non-GAAP Financial Measures
Disclaimer Use of Non-GAAP Financial Measures This Presentation includes non-GAAP financial measures. TWC Il and Cellebrite believe that these non-GAAP measures are useful to investors for two principal reasons. First, they believe these measures may assist investors in comparing performance over va
Slide 5: Investment highlights
Investment highlights Cellebrite is the clear market leader with 99% win rate within digital intelligence Massive $12B+ market opportunity for digital intelligence ("DI") solutions with major secular tailwinds supporting continued growth Unique mission critical end-to-end digital intelligence platfo
Slide 6: Table of contents
3° Cellebrite Table of contents / 1 Business overview “/ pif {| 2 Market overview fo | _ | 3 Investment highlights ,\ | 4 Financial overview \\\\ See . ; \ \ 5 Transaction overview \\ 6 Appendix Q
Slide 7: Business overview
oot ee -.- Cellebrite Our mission is to protect and save lives, accelerate justice and preserve privacy in global communities
Slide 8: World's leading provider of DI for investigations
World's leading provider of DI for investigations Highlights Cellebrite by the numbers Undisputed leader in investigative Digital Intelligence ("DI") $1 2B+ TAM (2023) Technology makes data accessible, digestible and actionable ~$200M 50%+ ARR (2021E) ARR Growth? Top research team built from elite I
Slide 9: Cellebrite empowers the world's leading government agencies and enterprises
Cellebrite empowers the world’s leading government agencies and enterprises (——— Federal 100+ North American Federal Accounts 14 of 15 U.S Cabinet Executive Departments 25 of 27 member E.U. National Police 7—— _ State & Local —, 2,700+ North American State and Local Accounts 50 of 50 U.S. States Pol
Slide 10: Investigations today are manual, slow
Investigations today are manual, slow (—— Collect & Review —) On-site Assigned manual eo collection Transfer of evidence HEH 7—— Management and siloed ¢ —| (——_ Analyze Initial Post processing handling storage Rely ona few Manual overwhelmed Backlog review people, with of data limited tech, to uncov
Slide 11: Cellebrite delivers a comprehensive DI software platform
Ry 7 + ANALYZE R=) Processing the data fast with So advanced analytics and Al Breaking down silos and enabling collaboration Cellebrite delivers a comprehensive DI software platform * COLLECT & REVIEW DATA SOURCES OUTCOMES Fast and Automated p approach to capturing data from digital sources ctitione
Slide 12: Collect & Review solution overview
Collect & Review solution overview Value Proposition: Capture critical investigative data from digital sources Key Functions Extract, decode and review data from the most digital sources + Unlock / bypass security + Apps, locations, media, messaging + Remote computer collection and analysis (New Fun
Slide 13: Analyze solution overview
Analyze solution overview Value Proposition: Automates and accelerates analysis of investigative data and the delivery of insights Key Functions Growth Vectors + - Al-based investigative analytics solutions help investigative Upsell existing offering teams fuse and enrich data: . (Pathfinder) to cus
Slide 14: Manage solution overview
Manage solution overview Value Proposition: Provides orchestration of investigative workflows Key Functions Growth Vectors + Manage deployment & utilization of solutions Expand within existing customer base of leading public safety + Define and enforce permissions agencies & access control + Store a
Slide 15: A platform for delivering social good
A platform for delivering social good Cellebrite is a powerful platform... ...making sure it’s used appropriately is of paramount importance to our mission c c Corporate policies & governance Built-in technology controls * Monitoring and policy administration conducted by in- * Platform designed to
Slide 16: Product Demo
2°" Cellebrite Product Demo
Slide 17: Table of contents
3° Cellebrite Table of contents 1 Business overview 2 Market overview 3 Investment highlights 4 Financial overview 5 Transaction overview 6 Appendix
Slide 18: Digital evidence is rapidly proliferating
Digital evidence Is rapidly proliferating + The “explosion” in digital evidence is driven by: Growth in the volume of digital devices Growth in the amount of data per device A suspect may have 8 smartphones around the house, sometimes the investigators collect so many devices we need to meet in orde
Slide 19: Explosion in digital evidence is transforming public safety
Explosion in digital evidence is transforming public safety a ©) Digital evidence plays a critical role in the judicial system Digital transformation in public safety is complex and leads to resources / capabilities being pushed to the field Transformation starts at large agencies and gradually expa
Slide 20: Public safety's digital transformation will drive meaningful growth
Public safety’s digital transformation will drive meaningful growth across our suite of solutions + + B ¢ Proliferation of digital sources ° Increased need for automated fusing and © Complexity of investigations creates need for enriching of growing data sets digital collaboration © Exponential grow
Slide 21: Massive digital intelligence market - $12B+ TAM in 2023
Massive digital intelligence market - $12B+ TAM in 2023 TAM by Customer TAM by Domain 1.6B 12.3B $1.7B — $ Private Sector $5.58 $0.8B | $1.6B Federal $4.78 | $2.7B Collection & Investigative Management Services eDiscovery & TAM Review Analytics cli USD Number of | 6.4002 1,1008 1,1008 6,400? | $730M
Slide 22: Table of contents
3° Cellebrite Table of contents 1 Business overview 2 Market overview 3 Investment highlights 4 Financial overview 5 Transaction overview 6 Appendix
Slide 23: M&A, private sector growth, new offerings
M&A Private sector growth New and extended Net new offering expansion
Slide 24: Cellebrite is the clear market leader
Cellebrite is the clear market leader 90%+ of relevant public safety agencies are customers Industry standard in digital investigations Source: Cellebrite proprietary research 2020 SB, 99% 20% Win Rate! Market penetration 145%+ ARR Net Retention? Sticky solution with Significant growth opportunity r
Slide 25: DI addresses larger budgets within existing accounts
DI addresses larger budgets within existing accounts Digital Intelligence offering Lab offering 40K 100K 1Million Examiners Analysts Investigators “For every $1 spent in the lab there is a $4 DI offering opportunity” Source: Cellebrite Proprietary Research 2020 % ot
Slide 26: Example of ARR expansion outside of core Collection & Review offering
Example of ARR expansion outside of core Collection & Review offering 5x ARR expansion opportunity $150K Collection & Review Full DI offering ™# of solutions MARR Note: Represents illustrative mid-sized customer. Figures are rounded.
Slide 27: Significant private sector growth opportunity
Significant private sector growth opportunity Enterprise pain points... 1, Missing eDiscovery suite of tools 2. Unsolved internal security incidents 3. Limited access to suspected employee's data ~10% of revenue Early adoption eDiscovery Corporate investigations Source: Cellebrite proprietary resear
Slide 28: Multiple vectors for near-term inorganic growth
Multiple vectors for near-term Inorganic growt N M&A strategy defined by target segment’s projected impact on value creation objectives Expansion Feature Enhancements Acquisition Collection & Review Investigative Analytics [IA} Command & Control eDiscovery, Corp Investigations & IA 28 Transaction wi
Slide 29: YTD customer and partnership successes
YTD 21 customer and partnership successes (———— Customer Traction ) £¢ Strategic Partnership ———— + Increasing number of multi-solution large + Long time customer: Singapore’s Ministry of deals Home Affairs + 1customer >$5M + Collaboration agreement with the Ministry's Science and Technology Agency,
Slide 30: Uniquely positioned in the competitive landscape
Uniquely positioned in the competitive landscape Integrated Suite @ accesso ote . u Q Palantir %.. Cellebrite a = - & Relativity’ NICE e nuix u No Device Simple Ponetul Pree, 5 we i AAXON _ exterro a c =z 0 7 a [fe =a Point Solutions Data Collection & Review capabilities Full Device Access Enabled b
Slide 31: What differentiates Cellebrite from other players
What differentiates Cellebrite from other players Strong, global brand with 10+ years of developing an end-to-end digital intelligence platform to fuse and enrich investigative data Deeply entrenched installed base of 5,000 public safety and 1,700 Enterprise customers Intrinsic knowledge of the indu
Slide 32: Table of contents
3° Cellebrite Table of contents 1 Business overview 2 Market overview 3 Investment highlights 4 Financial overview 5 Transaction overview 6 Appendix
Slide 33: Financial highlights
Financial highlights Sustainable ARR Growth ~53% ARR Growth Qi 21 Note: non-GAAP metrics defined in the appendix, Best-in-class Retention metrics 148% Net Retention LTM Mar-21 78% Gross Retention 2020 Strong Margin profile 83% Gross Margin LTM Mar-21 21% Adj. EBITDA Margin LTM Mar-21 33 oc
Slide 34: Sustainable ARR growth
Sustainable ARR growth % Total ARR Growth (YoY)! : 27% VAY 21% 28% 26% % 46% 49% 53% 44% $109 $80 $83 Q1-19A Q2-19A Q3-19A Q4-19A Q1-20A Q2-20A Q3-20A Q4-20A Q1-21A 2021E 2022E 'Growth rates compare to the reported ARR from the same quarter end in the prior year. 34
Slide 35: Consistent ARR growth driven by expansion
Consistent ARR growth driven by expansion 2019A 2020A 2021E 2022E Growth % 1 over base | ARR each } $197 $137 $72 2018 New Net 2019 New Net 2020 New Net 2021 New Net 2022 Total ARR Logo Land Upsell/downsell Total ARR Logo Land Upsell/downsell Total ARR Logo Land Upsell/downsell Total ARR Logo Land U
Slide 36: Operating leverage from disciplined investment
Operating leverage from disciplined investment Gross Margin Operating Expenses! as % of Revenue Total Gross Margin Subscription Gross Margin mGC&A mS&M m@R&D 78% 16% 74% 68% TTT oo% 93% 9% 93% poo | | | | ot It | | I | | | | | ot It a | 81% 81% l I It 19% 80% === 14 1 | | | | ot It | | I | | | | | o
Slide 37: Financial forecast
Financial forecast Strong operational metrics —-—s—oO 2021E 2022E Long Term ARR Growth 44% 32% 22 - 27% Revenue Growth 21% 20% 20 - 24% Adjusted EBITDA Margin‘ 15% 18% 25 — 35% Se 1 Excluding deferred customer acquisition costs adjustments as per updated accounting guidance and benchmarking, and as
Slide 38: Table of contents
3° Cellebrite Table of contents / 1 Business overview “/ / / 2 Market overview / / ~. || 3 Investment highlights ,\ | 4 Financial overview \\\ AX . . \ \ 5 Transaction overview \A 6 Appendix Q _~
Slide 39: True Wind overview
True Wind overview 7) TRUE WIND San Francisco-based private equity firm 75+ years of collective investing experience True Wind's founding partners were previously the founding members of KKR’s technology franchise Fifteen full-time investment professionals with deep technology investing expertise ©
Slide 40: Transaction overview
Transaction overview Key Proposed Transaction Terms ¢ Fully Diluted Enterprise Value of ~$1.8B (6.4x 2022E Revenue) ¢ Current owners will retain ~65% ownership in public Cellebrite ¢ Transaction will result in $430M of cash added to the balance sheet to fund accretive M&A and other strategic initiat
Slide 41: Diligence, regulatory review and shareholder vote timeline
Diligence & Documentation Regulatory Review Process Shareholder Vote & Deal Close
Slide 42: Table of contents
3° Cellebrite Table of contents 1 Business overview 2 Market overview 3 Investment highlights 4 Financial overview 5 Transaction overview 6 Appendix
Slide 43: March 20A / March 21A summary financials
March 20A March 21A ($K) ARR 98,542 150,480 YOY Growth - % 28.9% 52.7% Subscriptions 25,523 40,521 Perpetual License & Others 7,960 7,743 Professional Services 5,251 5,019 Total Revenue 38,734 53,283 YOY Growth - %2 (3.4%) 37.6% Gross Profit 29,114 45,097 Gross Profit - % 75.2% 84.6% Adjusted EBITDA
Slide 44: 2019A-2022E summary financials
2019A 2020A 2021E 2022E ($K) ARR 91,920 136,970 197,274 260,826 YOY Growth - % 28.5% 49.0% 44.0% 32.2% Subscriptions 86,647 129,745 180,876 228,500 Perpetual License & Others 59,175 42,136 26,538 20,484 Professional Services 26,032 23,032 28,223 33,816 Total Revenue1 171,854 194,913 235,637 282,800
Slide 45: March 20A / March 21A Non-GAAP EBIT reconciliation
March 20A March 21A ($K) Net Income (Loss) in Financial Statements (7,257) 3,590 Financial Income (142) (366) Tax Expenses 901 1,163 Share Based Compensation Expenses 1,822 1,699 Amortization of Intangible assets 129 388 Acquisition Related Cost 1,666 3,721 Non-GAAP EBIT (2,881) 10,195 Non-GAAP EBIT
Slide 46: 2019A-2022E Non-GAAP EBIT reconciliation
2019A 2020A 2021E 2022E ($K) Net Income (Loss) in Financial Statements (1,876) 5,781 14,017 30,096 Financial Income (2,935) (2,179) (1,920) (2,400) One-time Expense 4,034 1,519 - - Tax Expenses 3,291 5,616 4,426 9,504 Share Based Compensation Expenses 12,759 7,271 5,811 5,903 Amortization of Intangi
Slide 47: Cellebrite delivers the capabilities to solve more cases with less resources
Cellebrite delivers the capabilities to solve more cases with less resources, unlocking a massive social benefit to communities dealing with serious and pervasive crimes fiwil Case involvement 500K+! Cases utilize Cellebrite’s solutions annually Time to evidence 30x¥ Faster time-to- collect/analyze
Slide 48: Cellebrite product portfolio
UFED Responder UFED Premium Physical Analyzer Pathfinder Desktop Physical Analyzer Pathfinder Pathfinder Enterprise Seeker Premium Smart Translator Cloud Inspector Commander Digital Collector
Slide 49: 2015-2020 timeline
2015 2016 2017 2018 2019 2020
Slide 50: Publicly traded comparable companies overview
Publicly traded comparable companies overview Selected peers Revenue E EBITDA Margin Rule of 40: Comparability to Cellebrite Relevance Public Safety peers Security & Infrastructure Software peers Business Model peers AAXON @dynatrace ‘\varonis a duckcreck [| GUIDEWIRE @sailPoint —_alteryx f Aoverori
Slide 51: Operational benchmarking
f EBITDA Margin 2022E } [case CY20-22E Revenue Growth Operational benchmarking Public Safety peers Security & Infrastructure Software peers Business Model peers Median: 27% Median: 21% Median: 16% Median: 18% 20% 18% % m = _ 4 Cellebrite ASovabsigs — “Yh tyler — AAXON odynatrace \varonis SMjamf —alt
Slide 52: Valuation benchmarking
EV/Revenue 2022E EV/EBITDA 2022E Valuation benchmarking Public Safety peers Security & Infrastructure Software peers Business Model peers Median: 10.1x Median: 9.8x Median: 11.9x BAXON — Pewibridge og tyler, Gidynatrace ‘\varonis ji wes, @ppfolo Fjevwewine Median: 44.5x Median: 86.0x Median: 76.9x 9
Slide 53: TEV / CY 2022E Revenue
TEV / CY 2022E Revenue Compelling valuation discount to high growth peers 16.0x Gdynatrace 14.3x e 14.0x 12.0% AAXON @sailPoint 10.0x 9.5K, ° “ajamf 8.5x alteryx - 7.9% 8.0x . 6.0x 1.3248 4.0x 8% % 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 26% 25% 26% 27% 28% 29% 30% CY 2020 - CY 2022E
Slide 54: Definitions
Definitions Annual Recurring Revenue: 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 co
Slide 55: Key risks
Key risks Investing in the PIPE offering (the “Offering") involves a high degree of risk. Below is a non-comprehensive list of certain risks and uncertainties associated with Cellebrite DI Ltd. (the “Company,” “we,” “us” and “our"). You should carefully consider these risks and uncertainties, togeth