Cellebrite’s (NASDAQ: CLBT) is expecting double digit growth in all financial indicators this year, on the back of a significant planned expansion in customers and prudent investment.
Cellebrite expects its full year 2023 revenue to be between $305 and $315 million, representing 13-16% year on year growth, while full year 2023 adjusted EBITDA is expected to be between $35 and $40 million, representing 11-13% margin. End-December 2023 annual recurring revenue (ARR) is expected to be between $300 and $310 million, representing 21-25% year on year growth.
“We enter 2023 well positioned to accelerate our revenue growth rate and drive improved profitability as we continue to capitalize on the strong demand we see for our offerings,” Cellebrite CEO Yossi Carmil said.
“Looking ahead, we are well positioned to increase our revenue growth rate and sustain solid ARR momentum in 2023 as we continue expanding wallet share with existing customers, complemented by winning new logos. We anticipate that the combination of our top-line growth and prudent investment in our operations will enable us to drive improvement in our profitability during 2023, and keep us on track to reach our original long-term EBITDA margin target of 20% or greater,” Cellebrite CFO Dana Gerner said.
Cellebrite’s revenue rose by an annual 10% to $270.7 million in 2022, mostly due to a 18% rise in subscription revenue. The company also booked a gross profit and gross margin under Generally Accepted Accounting Principles (GAAP) of $219.9 million and 81.3%, respectively, while GAAP net income amounted to $120.8 million. Adjusted EBITDA and adjusted EBITDA were $25.9 million and 10%, respectively, in 2022.
“With a strong 33% annual growth in ARR during 2022 and 84% of our fourth-quarter 2022 revenue coming from subscription software licenses, Cellebrite has largely completed a successful, multi-year transition to subscription software,” Cellebrite CFO Dana Gerner said.
During Q42022, Cellebrite closed 29 large deals in the fourth quarter, each valued at $500,000 or more, won a $14 million agreement with a leading law enforcement agency in Asia for the company’s Advanced Extraction Solution. Also, it has signed one of its biggest intelligence deals, worth $10+ million with a major West European national police force.
The company also partnered with the Gangmasters and Labour Abuse Authority (GLAA), and The Exodus Road, helping them advance efforts to eliminate forced labor and human trafficking.
Magnet Forensics, Grayshift merger by Thoma Bravo good sign for market
Responding to a question about the potential impact of merger of Magnet Forensics and Grayshift by Thoma Bravo, Cellebrite CEO Carmil said that the combo is a clear statement on the attractiveness of the market. “In many ways, I would add, we are not surprised. The 2 companies have collaborated for several years by now. And I would say that from that context, or from that concept, this is for us a competition, which was good, remain good. But we have, let’s say, our own way and our own path and our own road map,” Carmil said, adding that as a vendor, Cellebrite combines in one house the offering that the two players bring right now together. “We have in our house offering, which is extended to investigators and analyst, Investigative Analytics and OSINT,” the CEO also said. .
Israel-based digital intelligence company Cellebrite was founded in 1999 and provides tools for federal, state, and local law enforcement as well as enterprise companies and service providers to collect, review, analyze and manage digital data.
Image source: cellebrite.com
