Cellebrite DI (CLBT) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with revenue of $95.7 million, up 25% year-over-year, and ARR of $345.9 million, up 26%, driven by robust demand for the Case-to-Closure platform, subscription growth, and expansion in the U.S. federal sector.

• Embedded AI capabilities across flagship solutions, with generative AI driving improvements in investigative speed and efficiency.

• Expanded U.S. federal business with the formation of Cellebrite Federal Solutions and the acquisition of CyTech/Cyber Technology Services, enhancing direct engagement with federal agencies.

• Announced a broad warrants redemption program and triggered share issuances, optimizing capital structure and trading liquidity.

• Strengthened leadership with new CIO and board appointments.

Financial highlights

• Q2 ARR grew 26% year-over-year to $345.9 million, with gross retention at 91%.

• Q2 revenue increased 25% year-over-year to $95.7 million, led by 27% growth in subscription software revenue.

• Q2 Adjusted EBITDA reached $21.6 million (22.6%–23% margin), up from 15% margin a year ago.

• Q2 non-GAAP net income was $22.9 million, or $0.10 per diluted share.

• Ended Q2 with $366 million in cash and investments, up $121 million year-over-year.

Outlook and guidance

• Raised 2024 revenue and ARR guidance, reflecting multi-year agreements, favorable product mix, and strong customer expansion.

• FY 2024 ARR expected at $388–$400 million (23%–27% growth), revenue at $390–$398 million (20%–22% growth), and adjusted EBITDA at $90–$95 million (23%–24% margin).

• Q3 2024 guidance: ARR $360–$374 million (24%–27% growth), revenue $100–$104 million (19%–24% growth), adjusted EBITDA $25–$29 million (25%–28% margin).

• Company expects to exceed Rule of 45 performance baseline for the second consecutive year.

• Full-year share count to increase modestly due to warrant redemption and share issuances.