Cellebrite Di Ltd. · NASDAQ:CLBT
Cellebrite Di — Q2 2021 Earnings Presentation
28 slides from Cellebrite Di's earnings presentation, August 2021
Slide 1: 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 the “Company”} and TWC Tech Holdings ll Corp. {"TWC”) and the entire contents should be considered “Confidential Information.” This Presentation is made solely for
Slide 3: Disclaimer
Disclaimer Use of Non-GAAP Financial Measures In addition to financial information presented in accordance with US. generally accepted accounting principles (“GAAP”], this Presentation includes non-GAAP financial measures, non-GAAP operating income and Adjusted EBITDA. These non-GAAP measures have l
Slide 4: Business Overview
2° Cellebrite 4 Business Overview i |
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: 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 7: Q2 customer successes
Q?2 21 customer successes Large Deal Example 1 Scandinavian long-term customer Need: improve efficiency and reduce backlogs Pre-booking of Premium Enterprise + >100 UFEDs + Increasing number of large multi-soli + 1 customer >$5M + 9 customers >$1M Customer Traction ution deals + + + Large Deal Examp
Slide 8: 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 9: Cellebrite Premium Enterprise
Cellebrite Premium Enterprise Fo? Agency-wide solution NY? 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 broader range of sources Q Simplification of viewing = and sharing *c°° ~—sCCross-case intelligence {co} Collaboration across fe) units and agencies 10
Slide 11: Professional services enhancement
Professional services enhancement +. Cellebrite +. Cellebrite — (FN) VALUE REALIZATION — a © avs — <J SERVICES & ADVISORY + System Integration, Automation and + Di Training Customization + Customized Training + Advisory and Consulting + Certification and Accreditation + Business Discovery + Mentorsh
Slide 12: M&A and private sector growth
M&A Private sector growth New and extended Net new offering expansion
Slide 13: Diligence & Documentation, Regulatory Review, Shareholder Vote & Deal Close
Diligence & Documentation Regulatory Review Process Shareholder Vote & Deal Close
Slide 14: Financial Overview
2°" Cellebrite Financial Overview i |
Slide 15: Financial highlights
Financial highlights Sustainable ARR Growth 46% ARR Growth Q2 21 Best-in-class Retention metrics 142% Net Retention LTM Jun-21 78% Gross Retention 2020 Note: non-GAAP metrics and key performance indicators defined in the appendix Strong Margin profile 83% Gross Margin LTM Jun-21 22% Adj. EBITDA Marg
Slide 16: Sustainable ARR growth
Sustainable ARR growth % Total ARR Growth (YoY)! : 27% 23%. 21% 28% 26% 37% 46% 49% 53% 46% 44% 32% Q1-19A Q2-19A —-Q3-19A Q4-19A — Q1-20A— Q2-20A— Q3-20A.— Q4-20A— Q1-21A_— Q2-21A 2021E 2022E | Growth rates compare to ARR from the same quarter end in the prior year, 16
Slide 17: ARR growth driven by expansion
ARR growth driven by expansion | over base ' ARR each L__year_—} $109 June 2020 New Net June 2021 Total ARR LogoLand Upsell/downsell _— Total ARR
Slide 18: Revenue growth driven by subscription
Revenue growth driven by subscription ™ Subscription services mTerm-license ™ Perpetual license and other 59.2 59.2 ™ Professional services 57.2 51.7 ALS Q1-19 Q2-19- Q3-19--Q4-19 Q1-20 Q2-20 -Q3-20) Q4-20)-— QI-21.— Q2-21 Q2-20 Q2-21 18
Slide 19: Profitability expansion
Profitability expansion Gross profit (6M) and margin Operating expenses (Non-GAAP, $M] and % of sales! 84.6% 7 82.0% 83.0% 83% 64.0% 66% 63% 75.1% Q120 = Q220 Q121 Q221 Qi20. Q220 Q121 Q2 21 Expected H2 21 Opex Increase Adj. EBITDA [$M] and margin + Travel 21.2% 22.6% Field marketing events 18.4% Hi
Slide 20: Financial outlook
Financial outlook Strong operational metrics 2021E 2022E ARR Growth 44% 32% Revenue Growth 21% 20% Adjusted EBITDA Margin 15% 18% Long Term 22 - 27% 20 -— 24% 25 — 35% — 20 $7"
Slide 21: Appendix
2 Cellebrite 4 Appendix |
Slide 22: June 20A / June 21A summary financials
June 20A June 21A ($K) 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 8,443 1
Slide 23: 2019A-2022E summary financials
2019A 2020A 2021E 2022E ($K) ARR 91,910 137,050 197,274 260,826 YOY Growth - % 28.4% 49.1% 43.9% 32.2% Subscriptions 86,647 129,745 180,876 228,500 Perpetual License & Others 59,175 42,136 26,538 20,484 Professional Services 26,032 23,032 28,223 33,816 Total Revenue 171,854 194,913 235,637 282,800 Y
Slide 24: Operating income reconciliation
June 20A June 21A ($K) 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 Non-GAAP Operating Income 7,324 12,115 No
Slide 25: Operating expenses reconciliation
June 20A June 21A ($K) Operating Expenses 35,886 40,879 Less: One time expense (Former co-founder compensation) 1,519 - Less: Share Based Compensation Expenses 2,127 2,363 Less: Amortization of Intangible Assets 387 435 Less: Acquisition Related Costs 1,626 1,096 Non-GAAP Operating Expenses 30,227 3
Slide 26: Net income to Adjusted EBITDA reconciliation
June 20A June 21A ($K) 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 2,363 Acquisition Related Costs 1,626 1,
Slide 27: Annual net income to Adjusted EBITDA 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) Tax Expense 3,291 5,616 4,426 9,504 Depreciation & Amortization 4,079 5,879 6,848 6,848 One-time Expense (Former co-founder compensation) 4,034 1,519 -
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 maintenance