Slide 1: Cellebrite Q2 21 Earnings Call
2° Cellebrite Q2 21 Earnings Call June 2021.
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) contains proprietary and confidential information of Cellebrite DI Ltd. (“Cellebrite” or t he “Company”) and TWC Tech Holdings II Corp. (“TWC”) and the entire contents should be considered “Confidential Information.” Th is Presentation is made solely for
Slide 3: Disclaimer: Non-GAAP Measures, Projections, Forward-Looking Statements
Disclaimer Use of Non - GAAP Financial Measures In addition to financial information presented in accordance with U . S . generally accepted accounting principles (“GAAP”), this Presentation includes non - GAAP financial measures, non - GAAP operating income and Adjusted EBITDA . These non - GAAP me
Slide 4: Business Overview
+2 Cellebrite Business Overview
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 pl
Slide 6: 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 To
Slide 7: Q2 customer successes
Q2 21 customer successes Customer Traction Large Deal Example 1 Increasing number of large multi - solution deals 1 customer > $5M 9 customers > $1M Large Deal Example 2 Large Deal Example 3 Scandinavian long - term customer Need: improve efficiency and reduce backlogs Pre - booking of Premium Enter
Slide 8: 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 9: Cellebrite Premium Enterprise
Cellebrite Premium Enterprise Agency - wide solution to scale up Empowers existing UFED fleet Centralizes user and fleet management Boosts productivity
Slide 10: Cellebrite Pathfinder 8.6
Cellebrite Pathfinder 8.6 Ingestion from b roader range of sources Simplification of viewing and sharing C ro ss - case intelligence Collaboration across units and agencies
Slide 11: Professional services enhancement
Professional services enhancement DI Training Customized Training Certification and Accreditation Mentorship Program Advisory and Consulting System Integration, Customization and Automation Business Discovery Advanced Digital Data Access and Collection Crypto Investigations Expert Lab Services Remot
Slide 12: 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 13: Transaction timing and certainty
Transaction timing and certainty Business combination expected to close in Q 3 2021 with significant deal certainty given that minimum cash requirement has predominately been fulfilled through the $ 300 M of PIPE agreements already in place Diligence & Documentation Regulatory Review Process Shareho
Slide 14: Financial Overview
42 Cellebrite Financial Overview
Slide 15: Financial highlights
Financial highlights Sustainable ARR Growth 46 % ARR Growth Q 2 ’ 21 Best - in - class Retention metrics 142% Net Retention LTM Jun - 21 98% Gross Retention 2020 Strong Margin profile 8 3 % Gross Margin LTM Jun - 21 22% Adj. EBITDA Margin LTM Jun - 21 Note: non - GAAP metrics and key performance ind
Slide 16: Sustainable ARR growth
Sustainable ARR growth $76 $80 $83 $ 92 $96 $109 $ 121 $137 $150 $159 $197 $ 261 Q1-19A Q2-19A Q3-19A Q4-19A Q1-20A Q2-20A Q3-20A Q4-20A Q1-21A Q2-21A 2021E 2022E 1 Growth rates compare to ARR from the same quarter end in the prior year. % Total ARR G rowth (YoY) 1 26 % 37 % 28 % 49 % 23 % 27 % 21 %
Slide 17: ARR growth driven by expansion
ARR growth driven by expansion $109 $ 159 $6 $44 June 2020 Total ARR New Logo Land Net Upsell/downsell June 2021 Total ARR 46% Growth % over base ARR each year + 6 % +40%
Slide 18: Revenue growth driven by subscription
Revenue growth driven by subscription 19.1 19.8 20.4 22.2 22.6 24.4 25.8 27.8 29.0 29.9 2.6 2.4 2.9 6.8 9.2 10.3 11.5 11.6 16.0 10.9 13.1 19.2 8.0 10.5 11.8 11.8 7.7 10.4 5.0 6.5 6.6 8.0 5.3 4.1 6.4 7.3 5.0 7.3 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Subscription services Term-li
Slide 19: Profitability expansion
Profitability expansion Gross profit ($M) and margin 29.1 37.6 45.1 49.1 Q1 20 Q2 20 Q1 21 Q2 21 82.0 % 84.6% 83.0% 75.1% 32.0 30.2 34.9 37.0 Q1 20 Q2 20 Q1 21 Q2 21 6 6.0 % 66 % 63 % 83 % Adj. EBITDA ($M) and margin - 1.9 8.4 11.3 13.4 Q1 20 Q2 20 Q1 21 Q2 21 - 4.8% 18.4% 21.2% 22.6% Travel Field m
Slide 20: Financial outlook
2021E 2022E ARR Growth 44% 32% Revenue Growth 21% 20% Adjusted EBITDA Margin 15% 18% Long Term 22 – 27% 20 – 24% 25 – 35% Financial outlook Strong operational metrics
Slide 21: Appendix
42 Cellebrite Appendix
Slide 22: Financial summary – Q2
($K) June 20 A June 21A ARR 109,153 158,895 YOY Growth - % 36% 46% Subscriptions 31,168 41,458 Perpetual License & Others 10,506 10,382 Professional Services 4,096 7,328 Total Revenue 45,770 59,168 YOY Growth - % 2 22% 29% Gross Profit 37,551 49,100 Gross Profit - % 82.0 % 83.0% Adjusted EBITDA 8,44
Slide 23: Financial summary - annual
($K) 2019A 2020A 2021E 2022E ARR 91,910 137,050 197,274 260,826 YOY Growth - % 28.4% 49.1% 43.9% 32.2% Subscriptions 86,647 129,745 180,876 228,500 Perpetual License & Others 59,175 42,136 26,538 20,484 Professional Services 26,032 23,032 28,223 33,816 Total Revenue 171,854 194,913 235,637 282,800 Y
Slide 24: Operating income reconciliation – Q2
Operating income reconciliation – Q2 ($K) June 20A June 21A Operating Income in Financial Statements 1,665 8,221 One time expense (Former co - founder compensation) 1,519 - Share Based Compensation Expense 2,127 2,363 Amortization of Intangible Assets 387 435 Acquisition Related Costs 1,626 1,096 No
Slide 25: Operating expenses reconciliation – Q2
Operating expenses reconciliation – Q2 ($K) June 20A June 21A Operating Expenses 35,886 40,879 Less: One time expense (Former co - founder compensation) 1,519 - Less: Share Based Compensation Expenses 2,127 2,363 Less: Amortization of Intangible Assets 387 435 Less: Acquisition Related Costs 1,626 1
Slide 26: Adjusted EBITDA reconciliation – Q2
Adjusted EBITDA reconciliation – Q2 ($K) June 20A June 21A Net Income in Financial Statements 1,963 7,796 Financial Income (1,015) (496) Tax Expenses 717 921 Depreciation & Amortization 1,506 1,699 One - time Expense (Former co - founder compensation) 1,519 - Share Based Compensation Expenses 2,127
Slide 27: Adjusted EBITDA reconciliation - annual
Adjusted EBITDA reconciliation - annual ($K) 2019A 2020A 2021E 2022E Net Income (Loss) in Financial Statements (1,876) 5,781 14,017 30,096 Financial Income (2,935) (2,179) (1,920) (2,400) Tax Expense 3,291 5,616 4,426 9,504 Depreciation & Amortization 4,079 5,879 6,848 6,848 One - time Expense (Form
Slide 28: 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