Cellebrite DI (CLBT) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $106.9 million, up 27% year-over-year, surpassing $100 million in a quarter for the first time, driven by strong subscription growth and ARR expansion.

• Annual Recurring Revenue (ARR) reached $370.8 million, up 26% year-over-year, with a net retention rate of 124% and gross retention around 91%.

• Adjusted EBITDA for Q3 was $31.3 million (29.3% margin), and non-GAAP net income was $31.8 million ($0.14 per diluted share); GAAP net loss was $207.1 million due to non-cash expenses.

• CEO Yossi Carmil announced his planned departure at year-end after 19 years, with a global search for a successor underway.

• Strategic focus on expanding C2C platform, cloud solutions, and AI-driven analytics, with significant traction in U.S. federal and international markets.

Financial highlights

• Q3 2024 revenue was $106.9 million, with subscription revenue of $93.4 million, both up 27% year-over-year and comprising 87% of total revenue.

• ARR reached $370.8 million (+26% YoY); recurring revenue net retention was 124%.

• Q3 Adjusted EBITDA was $31.3 million (29.3% margin); non-GAAP net income was $31.8 million ($0.14 per diluted share).

• Free cash flow for Q3 was $39.8 million, and cash flow from operations was $41.7 million.

• Ended Q3 with $413.6 million in cash and equivalents, up $130.4 million from the prior year.

Outlook and guidance

• Raised 2024 revenue guidance to $397–$401 million (+22–23% YoY) and Adjusted EBITDA to $94–$100 million (24–25% margin).

• Increased the low end of 2024 ARR target to $390 million, with full-year ARR guidance of $390–$400 million (+23–27% YoY).

• Expecting to begin 2025 with approximately 255 million diluted shares outstanding.

• Long-term model targets 24% ARR CAGR and 20–25% EBITDA margin.

• Q4 2024 revenue expected at $105–$109 million (+13–17% YoY); adjusted EBITDA $25–$29 million (24–27% margin).