Slide 1: Investor Presentation April 2021
Investor Presentation April 2021 Exhibit 99.2
Slide 2: Disclaimer
Disclaimer This investor presentation (“Investor Presentation”) contains proprietary and confidential information of Cellebrite DI Ltd. (“ Cellebrite ” or the “Company”) and TWC Tech Holdings II Corp. (“TWC II”) and the entire contents should be considered “Confidential Info rma tion.” This presenta
Slide 3: Disclaimer: Use of Non-GAAP Financial Measures
Disclaimer Use of Non - GAAP Financial Measures This presentation includes non - GAAP financial measures. TWC II 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 o
Slide 4: Team and presenters
Team and presenters Founding Partner of True Wind Capital. Former Founder and Head of KKR Global Technology Group Board experience includes LPRO, AVGO, GDDY, NXPI, JAZZ, AEPI, MDTH, EK and many private companies Holds an MBA from Harvard Business School Partner at True Wind Capital. Former investmen
Slide 5: Investment highlights
Investment highlights Cellebrite is the clear market leader with 99% win rate within digital intelligence Massive $ 12 B+ market opportunity for digital intelligence ( “ DI ” ) solutions with major secular tailwinds supporting continued growth Unique mission critical end - to - end digital intellige
Slide 6: Table of contents
Business overview Market overview Investment highlights Transaction overview Financial overview Appendix Table of contents 1 2 3 4 5 6
Slide 7: Our mission is to protect and save lives, accelerate justice and preserve privacy
Our mission is to protect and save lives, accelerate justice and preserve privacy in global communities
Slide 8: Cellebrite by the numbers
Top research team built from elite Israeli intelligence units 6,700 customers across federal, state, local and enterprise High visibility recurring revenue business model with best - in - class growth and margin profile Technology makes data accessible, digestible and actionable Undisputed leader in
Slide 9: Cellebrite empowers the world's leading government agencies and enterprises
Cellebrite empowers the world ’ s leading government agencies and enterprises Federal State & Local Enterprise 9 of Top 10 Accounting Firms 6 of Top 10 Pharma Companies 8 of Top 10 U.S. Commercial Banks 5 of Top 10 Auto Manufacturers 6 of Top 10 Petroleum Refiners 6 of Top 10 Telecom companies 9 of
Slide 10: Investigations today are manual, slow, and siloed
Investigations today are manual, slow, and siloed Backlog Manual review of data Initial handling Rely on a few overwhelmed people, with limited tech, to uncover insights Siloed task forces Slow, manual Error prone Data loss due to miscommunication Slow and cumbersome first responses Manual and error
Slide 11: Cellebrite delivers a comprehensive DI software platform
Cellebrite delivers a comprehensive DI software platform DI PLATFORM DATA SOURCES Prosecutors Agency Management Lab Practitioners Investigators & Analysts DATA TYPES OUTCOMES Accelerated investigations Empowering Chiefs of Investigations & Intelligence with end - to - end investigative platform Incr
Slide 12: Collect & Review solution overview
Collect & Review solution overview Value Proposition: Capture critical investigative data from digital sources Key Benefits Deep & thorough extraction of evidentiary data Broadest range of device & profile support Unsurpassed decoding Powerful review Key Functions Extract, decode and review data fro
Slide 13: Analyze solution overview
Analyze solution overview Value Proposition: Automates and accelerates analysis of investigative data and the delivery of insights Key Benefits Expedites time - to - evidence in investigations Automatically surfaces formatives leads and actionable insights Accelerates time - to - evidence by up to 3
Slide 14: Manage solution overview
Manage solution overview Value Proposition: Provides orchestration of investigative workflows Key Benefits Saves time and cuts operational costs Provides operational visibility & control Key Functions Manage deployment & utilization of solutions Define and enforce permissions & access control Store
Slide 15: A platform for delivering social good
A platform for delivering social good Corporate policies & governance • Monitoring and policy administration conducted by in - house compliance and outside counsel • Board - level oversight by ethics committee • Prioritize a human - rights based approach Built - in technology controls • Platform des
Slide 16: Table of contents
Business overview Market overview Investment highlights Transaction overview Financial overview Appendix 1 2 3 4 5 6 Table of contents
Slide 17: 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 Growth in number of exhibits per case A suspect may have 8 smartphones around the house, sometimes the investigators collect s
Slide 18: Digital evidence plays a critical role in the judicial system
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 expands towards medium and small agencies We use UFED in 100% of our
Slide 19: Public safety's digital transformation will drive meaningful growth
Public safety’s digital transformation will drive meaningful growth across our suite of solutions Proliferation of digital sources Exponential growth in data volume Increased difficulty to access data Complexity and variety of data sources Complexity of investigations creates need for digital collab
Slide 20: Massive digital intelligence market – $12B+ TAM in 2023
Massive digital intelligence market – $ 12 B+ TAM in 2023 $2.7B $5.5B $0.8B $1.7B $1.6B $12.3B Collection & Review Investigative Analytics Management Services eDiscovery & CI TAM USD Number of agencies Avg. spend per agency 2 Federal $ 4.7 B State & Local $6.0 B Private Sector $1.6 B TAM by Customer
Slide 21: Table of contents
Business overview Market overview Investment highlights Transaction overview Financial overview Appendix 1 2 3 4 5 6 Table of contents
Slide 22: Significant near-term growth opportunity
Significant near - term growth opportunity 5x 1 increase in spend on in - house discovery and investigations M&A Targeted, disciplined approach Private sector growth New and extended offering Premium Enterprise Cloud & SaaS Remote collection New buying centers within existing logos Net new expansion
Slide 23: Cellebrite is the clear market leader
Cellebrite is the clear market leader Industry standard in digital investigations 90%+ of relevant public safety agencies are customers Significant growth opportunity into existing base 99% Win Rate 1 140%+ ARR Net Retention 2 Sticky solution with remarkable win rates 20 % Market penetration Source:
Slide 24: DI addresses larger budgets within existing accounts
DI addresses larger budgets within existing accounts Lab offering Digital Intelligence offering 40K Examiners 100K Analysts 1 Million Investigators “For every $1 spent in the lab there is a $4 investigative analytics opportunity” Source: Cellebrite Proprietary Research 2020 .
Slide 25: Proven record of ARR expansion outside of core offering
Proven record of ARR expansion outside of core Collection & Review offering 4 9 $150K $750K Collection & Review Full DI offering # of solutions ARR 5x ARR expansion opportunity Note: Represents illustrative mid - sized customer. Figures are rounded.
Slide 26: Significant private sector growth opportunity
Significant private sector growth opportunity ~ 20 % of revenue ~10% of revenue Broad adoption, More use cases + 500 customers Increased ARPC (1) Early adoption eDiscovery Corporate investigations 1. Missing eDiscovery suite of tools 2. Unsolved internal security incidents 3. Limited access to suspe
Slide 27: Multiple vectors for near-term inorganic growth
Multiple vectors for near - term inorganic growth TAM Expansion Customer Acquisition Investigative Analytics (IA) eDiscovery, Corp Investigations & IA Collection & Review Command & Control 2 3 5 3 3 5 5 3 2 4 3 4 M&A strategy defined by target segment’s projected impact on value creation objectives
Slide 28: Uniquely positioned in the competitive landscape
Uniquely positioned in the competitive landscape Full Device Access Enabled by a Deep Understanding of Data Structures Point Solutions Data Analytics capabilities Data Collection & Review capabilities No Device Access Integrated Suite Cellebrite is uniquely positioned as an industry leader in both d
Slide 29: 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 Top research team from elite intelligence units (e.g. 8200) generating unmatched capabilities Deeply entrenched in
Slide 30: Table of contents
Business overview Market overview Investment highlights Transaction overview Financial overview Appendix 1 2 3 4 5 6 Table of contents
Slide 31: Financial highlights
Financial highlights Sustainable ARR Growth ~50% ARR Growth Q4 ’20A Best - in - class Retention metrics 140%+ Net Retention 2020A 98% Gross Retention 2020A Strong Margin profile 80% Gross Margin 2020A 18% Adj. EBITDA Margin 2020A Note: non - GAAP metrics defined in the appendix.
Slide 32: Sustainable ARR growth
Sustainable ARR growth $ 76 $80 $83 $92 $96 $109 $ 121 $137 $ 197 $261 Q1-19A Q2-19A Q3-19A Q4-19A Q1-20A Q2-20A Q3-20A Q4-20A 2021E 2022E 1 Growth rates compare to the reported ARR from the same quarter end in the prior year. % Total ARR G rowth (YoY) 1 26 % 37 % 28 % 49 % 23 % 27 % 21 % 4 6 % 44 %
Slide 33: Consistent ARR growth driven by expansion
Consistent ARR growth driven by expansion $72 $92 $ 137 $197 $261 $4 $ 16 $6 $39 $6 $ 54 $6 $58 2018 Total ARR New Logo Land Net Upsell/downsell 2019 Total ARR New Logo Land Net Upsell/downsell 2020 Total ARR New Logo Land Net Upsell/downsell 2021 Total ARR New Logo Land Net Upsell/downsell 2022 Tot
Slide 34: Operating leverage from disciplined investment
15 % 16% 36% 33 % 27% 27% 2019A 2020A 2021E 2022E G&A S&M R&D Operating leverage from disciplined investment 78% 76 % 74% 68% Operating Expenses 1 as % of Revenue 79% 80% 81% 81% 92 % 93% 93% 93 % 2019A 2020A 2021E 2022E Total Gross Margin Subscription Gross Margin Gross Margin 1 Excluding public co
Slide 35: Financial forecast
2021 E 2022E ARR Growth 44% 32% Revenue Growth 21% 20% Adjusted EBITDA Margin 19% 21% Long Term 22 – 27% 20 – 24% 25 – 35% Financial forecast Strong operational metrics
Slide 36: Table of contents
Business overview Market overview Investment highlights Transaction overview Financial overview Appendix 1 2 3 4 5 6 Table of contents
Slide 37: True Wind overview
True Wind overview 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 Investing i
Slide 38: Transaction overview
Transaction overview Illustrative Pro Forma Capitalization 65 % 3% 13% 20% 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 $430M of cash added to the balance sheet t
Slide 39: Publicly traded comparable companies overview
Publicly traded comparable companies overview CAGR CY20 - 22E Revenue Growth Recurring Revenue % 1 CY 22 E EBITDA Margin Comparability to Cellebrite EV/CY22 Revenue Source: As of 3/23/21. Company filings, Wall Street Research, CapIQ , Factset . Note: ‘nm’ denotes not meaningful multiples <0x or >100
Slide 40: Operational benchmarking
21% 35% 30% 19% 5 % 27 % 11% 9% 9% 8% 3% 18% 6 % 4 % Operational benchmarking 20% 26% 18% 16% 8% 27 % 25 % 24% 17% 15% 11% 18% 15% 10 % CAGR CY 20 - 22 E Revenue Growth EBITDA Margin 2022E Source: As of 3/23/21. Company filings, Wall Street Research, CapIQ , Factset . Business Model peers Security &
Slide 41: Valuation benchmarking
30.1 x 49.9x 42.0x 18.8x 97.6x 89.8 x 53.1x 64.8x Valuation benchmarking 6.4x 12.5x 12.3x 11.3x 6.5 x 14.2x 12.8x 10.3 x 10.0x 8.8x 8.6x 17.3x 11.6 x 9.4x nm nm Source: As of 3/23/21. Company filings, Wall Street Research, CapIQ , Factset . Note: ‘nm’ denotes not meaningful multiples <0x or >100x. n
Slide 42: Compelling valuation discount to high growth peers
Compelling valuation discount to high growth peers Source: As of 3/23/21. Company filings, Wall Street Research, CapIQ , Factset . Based on Public Safety Peers and Security & Infrastructure Software Peers only. Excludes TYL; Calculation of R 2 does not include Cellebrite CY 2020 – CY 2022E R e venue
Slide 43: Table of contents
Business overview Market overview Investment highlights Transaction overview Financial overview Appendix 1 2 3 4 5 6 Table of contents
Slide 44: Financial summary
($K) 2019 A 2020A 2021E 2022 E ARR 91,920 136,970 197,274 260,826 YOY Growth - % 28.5% 49.0% 44.0% 32.2% Subscription Revenue 86,647 129,745 180,876 228,500 Perpetual Revenue & Others 58,487 42,396 26,538 20,484 Professional Services 26,032 23,032 28,223 33,816 Total Revenue 1 171,166 195,173 235,63
Slide 45: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation ($K) 2019A 2020A 2021E 2022E Net Income (Loss) in Financial Statements (1,972) 3,714 14,017 30,096 Financial Income (3,029) (2,179) (1,920) (2,400) Other Expenses 3,863 - - - Tax Expenses 3,652 7,683 4,426 9,504 Depreciation and Amortization 4,079 5,879 6,847 6,847 Def
Slide 46: Cellebrite solves more cases with fewer 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 Case involvement 500K+ 1 C ases utilize Cellebrite’s solutions annually Time to evidence 30x+ 2 Faster time - to - collect/analyze
Slide 47: Proven land-and-expand upsell motion
Proven land - and - expand upsell motion Note: Cellebrite currently offers a total of 13 solutions (excluding additional services). 2 Solutions 4 Solutions $21 $21 $138 2018 2019 2020 Tier 2: U.S. City PD ($K) ~7x ARR Growth 5 Solutions 12 Solutions $234 $247 $1,150 2018 2019 2020 Tier 1: Large U.K.
Slide 48: Deep cache of active zero-day exploits allows differentiated access
Deep cache of active zero - day exploits allows differentiated access across device ecosystem Proven, consistent track record of enabling access to encrypted devices over the past 10 years Systematized ability to generate useful research assets or “zero - day exploits” to enable device access 5x inc
Slide 49: Definitions
Definitions 1. 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 maintenan
Slide 50: 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 ris ks and uncertainties associated with Cellebrite DI Ltd. (the “Company,” “we,” “us” and “our”). You should carefully consider the se risks and uncertainties, to