PETAH TIKVA, Israel, Aug. 12,
2021 /PRNewswire/ -- Cellebrite, the global leader in
Digital Intelligence ("DI") solutions for the public and private
sectors, today announced financial results for the three months
ended June 30, 2021.
"Cellebrite continued to perform strongly in the second quarter
of 2021, with revenue growth and profitability exceeding our
expectations once again," said Yossi
Carmil, Cellebrite's CEO. "These results reflect successful
execution of our go-to-market strategy, and strong and sustained
customer demand for our Digital Intelligence solutions designed to
help them transform and accelerate the investigative workflow while
protecting lives and preserving privacy. We are seeing a healthy
market environment, which reflects an inflection point, with law
enforcement agencies increasingly realizing that digital
transformation is a necessity given the rapid growth in digital
data volumes, complexity and importance. We continue to expect our
merger with TWC Tech Holdings II Corp. will be completed in the
third quarter of the year, and we look forward to continuing our
journey as a public company."
Second Quarter Financial and Business Highlights
- Annual Recurring Revenue (ARR) of $159
million, up 46% year-over-year
- ARR dollar-based net retention rate of 142%
- Revenue of $59.2 million, up 29%
year-over-year
- Subscription revenue of $41.4
million, up 33% year-over-year
- Gross profit and gross margin of $49.1
million and 83%, respectively
- Net income of $7.8 million;
Adjusted EBITDA and Adjusted EBITDA margin of $13.4 million and 23%, respectively
- Established a strategic partnership with Singapore's Home Team Science and Technology
Agency (HTX), an arm of the Ministry of Home Affairs, to drive
innovation and deliver industry leading digital intelligence
capabilities
- Launched the latest version of Cellebrite Pathfinder, its
flagship investigative analytics solution achieving significant
milestones in data analysis, enterprise readiness, scalability, and
process performance
In addition, Cellebrite recently announced important
milestones aimed at broadening its Digital Intelligence
platform:
- Introduced Premium Enterprise, a next generation solution which
is part of Cellebrite's end-to-end Digital Intelligence
Investigative Platform offering and is deployed in an agency's
secured domain via server and connects to their existing UFED
devices.
- Expanded its service offerings to help customers unlock the
full potential of Digital Intelligence solutions, and to ensure
customer success at every stage of the digital transformation
journey. Among the new offerings are an advisory practice, on-site
advanced collection service, and managed services.
Webcast Information
Today, August 12, 2021, Cellebrite
will post a pre-recorded presentation to its website that discusses
the second quarter 2021 results and the outlook for the full year.
The webcast can be found on Cellebrite's website at
https://www.cellebrite.com/en/investors.
Business Combination with TWC Tech Holdings II Corp.
As previously announced, Cellebrite and TWC Tech Holdings II
Corp ("TWC") have entered into a definitive business combination
agreement and plan of merger ("Merger Agreement"). A special
meeting of stockholders of TWC. to approve the business combination
is scheduled for August 27, 2021 at
1:00 pm Eastern Time. As a
result of the transaction, subject to TWC stockholder approval and
customary closing conditions, Cellebrite expects to become a
publicly listed company on Nasdaq with its ordinary shares and
warrants trading under the new ticker symbols, "CLBT" and "CLBTW",
respectively. The transaction seeks to accelerate
Cellebrite's ability to execute on significant near-term growth
opportunities in the public sector, develop new customer solutions
and expand its private sector and end-market reach.
Non-GAAP Financial Information and Key Performance
Indicators
This press release includes non-GAAP financial measures.
Cellebrite believes that the use of non-GAAP operating income
(loss) and Adjusted EBITDA is helpful to investors. These measures,
which the Company refers to as our non-GAAP financial measures, are
not prepared in accordance with GAAP.
Non-GAAP operating income (loss) is calculated as operating
income (loss) excluding (i) share-based compensation expense, (ii)
acquisition-related costs, (iii) amortization of intangible assets,
and (iv) a one-time compensation expense related to the termination
of a co-founder of the company.
Adjusted EBITDA is calculated as net income (loss) excluding (i)
financial income (expense), (ii)tax expense (iii) depreciation and
amortization, (iv) share-based compensation expense, (v)
acquisition-related costs, and (vi) a one-time compensation expense
related to the termination of a co-founder of the company.
The Company believes that the exclusion of these expenses
provides a more meaningful comparison of its operational
performance from period to period and offers investors and
management greater visibility to the underlying performance of its
business. Specifically:
- Share-based compensation expenses utilize varying available
valuation methodologies, subjective assumptions and a variety of
equity instruments that can impact a company's non-cash
expenses;
- Acquired intangible assets are valued at the time of
acquisition and are amortized over an estimated useful life after
the acquisition, and acquisition-related expenses are unrelated to
current operations and neither are comparable to the prior period
nor predictive of future results; and
- Tax expense, and depreciation and amortization expense vary for
many reasons that are often unrelated to our underlying performance
and make period-to-period comparisons more challenging; and
- One-time or unusual expenses are often not representative of
the underlying performance of our business and make
period-to-period comparisons more challenging.
Each of our non-GAAP financial measures is an important tool for
financial and operational decision making and for evaluating our
own operating results over different periods of time. The non-GAAP
financial measures do not represent our financial performance under
U.S. GAAP and should not be considered as alternatives to operating
income (loss) or net income (loss) or any other performance
measures derived in accordance with GAAP. Non-GAAP financial
measures may not provide information that is directly comparable to
that provided by other companies in our industry, as other
companies in our industry may calculate non-GAAP financial results
differently, particularly related to non-recurring, unusual items.
In addition, there are limitations in using non-GAAP financial
measures because the non-GAAP financial measures are not prepared
in accordance with GAAP, and exclude expenses that may have a
material impact on our reported financial results. Further,
share-based compensation expense have been, and will continue to be
for the foreseeable future, significant recurring expenses in our
business and an important part of the compensation provided to our
employees. In addition, the amortization of intangible assets are
expected recurring expenses over the estimated useful life of the
underlying intangible asset and acquisition-related expenses will
be incurred to the extent acquisitions are made in the future.
Furthermore, foreign exchange rates may fluctuate from one period
to another, and the Company does not estimate movements in foreign
currencies.
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 contracts for perpetual licenses are annualized by
multiplying the revenue of the last month of the period by 12. The
annualized value of contracts is a legal and contractual
determination made by assessing the contractual terms with our
customers. The annualized value of maintenance contracts is not
determined by reference to historical revenues, deferred revenues
or any other GAAP financial measure over any period. ARR is not a
forecast of future revenues, which can be impacted by contract
start and end dates and renewal rates.
About Cellebrite
Cellebrite's mission is to enable its customers protect and save
lives, accelerate justice and preserve privacy in communities
around the world. Cellebrite is the global leader in Digital
Intelligence solutions for the public and private sectors,
empowering organizations in mastering the complexities of legally
sanctioned digital investigations by streamlining intelligence
processes. Trusted by thousands of leading agencies and companies
in more than 140 countries, Cellebrite's Digital Intelligence
platform and solutions transform how customers collect, review,
analyze and manage data in legally sanctioned investigations. To
learn more visit us at www.cellebrite.com and
https://www.cellebrite.com/en/investors/.
About TWC Tech Holdings II Corp.
TWC Tech Holdings II Corp. is a blank check company formed for
the purpose of effecting a merger, capital stock exchange, asset
acquisition, stock purchase, reorganization or similar business
combination. TWC Tech Holdings II Corp. raised $600 million in its initial public offering in
September 2020. TWC Tech Holdings II
Corp.'s securities are listed on the Nasdaq Capital Market under
the ticker symbols "TWCT," "TWCTU" and "TWCTW."
Additional Information
This communication is being made in respect of the proposed
transaction involving Cellebrite and TWC. In connection with the
proposed transaction, Cellebrite has filed with the SEC a
registration statement on Form F-4 that includes a proxy statement
of TWC in connection with TWC's solicitation of proxies for the
vote by TWC's stockholders with respect to the proposed transaction
and other matters as may be described in the registration
statement. The registration statement on Form F-4 was declared
effective on August 6, 2021.
Cellebrite and TWC also plan to file other documents with the SEC
regarding the proposed transaction and a proxy statement/prospectus
is also being mailed to TWC's stockholders, seeking any required
stockholder approvals. BEFORE MAKING ANY VOTING OR INVESTMENT
DECISION, INVESTORS AND SECURITYHOLDERS OF TWC ARE URGED TO READ
THE FORM F-4 AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE
PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS, INCLUDING
AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN
THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
ABOUT THE PROPOSED TRANSACTION. The proxy statement/prospectus, as
well as other filings containing information about Cellebrite and
TWC are available without charge at the SEC's Internet site
(http://www.sec.gov). Copies of the proxy statement/prospectus can
also be obtained, when available, without charge, from Cellebrite's
website at www.cellebrite.com, or by directing a request to: TWC
Tech Holdings II Corp., Four Embarcadero Center, Suite 2100,
San Francisco, CA 94111.
Participants in the Solicitations
Cellebrite, TWC and certain of their respective directors,
executive officers and other members of management and employees
may, under SEC rules, be deemed to be participants in the
solicitation of proxies from TWC's stockholders in connection with
the proposed transaction. You can find more information about the
directors and officers of Cellebrite and TWC at Cellebrite's
website at www.cellebrite.com, or in the proxy statement/prospectus
on Form F-4 filed by Cellebrite with the SEC. Additional
information regarding the participants in the proxy solicitation
and a description of their direct and indirect interests are
included in the proxy statement/prospectus. Shareholders, potential
investors and other interested persons should read the proxy
statement/prospectus carefully when it becomes available before
making any voting or investment decisions. You may obtain free
copies of these documents from the sources indicated above.
Caution About Forward-Looking Statements
This communication includes forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 including, but not limited
to, Cellebrite's and TWC's expectations and beliefs concerning
future events and involve risks and uncertainties that may cause
actual results to differ materially from current expectations.
These factors are difficult to predict accurately and may be beyond
Cellebrite's and TWC's control. Forward-looking statements are
inherently subject to risks, uncertainties and assumptions.
Generally, statements that are not historical facts, including
statements concerning possible or assumed future actions, business
strategies, events or results of operations, including financial
projections, are forward-looking statements. These statements may
be preceded by, followed by or include the words "believes,"
"estimates," "expects," "projects," "forecasts," "may," "will,"
"should," "seeks," "plans," "scheduled," "anticipates" or "intends"
or similar expressions. Such forward-looking statements involve
risks and uncertainties that may cause actual events, results or
performance to differ materially from those indicated by such
statements.
Certain of these risks are identified and discussed in the
section of Cellebrite's proxy statement/prospectus on Form F-4
titled "Risk Factors", which will be important to consider in
determining future results and should be reviewed in their
entirety. These forward-looking statements include, without
limitation, expectations with respect to approval by TWC's
stockholders of the business combination and satisfaction of other
closing conditions. Forward-looking statements are based on
Cellebrite's or TWC's management's current expectations and
beliefs, as well as a number of assumptions concerning future
events. However, there can be no assurance that the events, results
or trends identified in these forward-looking statements will occur
or be achieved. Forward-looking statements in this communication or
elsewhere speak only as of the date made. New uncertainties and
risks arise from time to time, and it is impossible for Cellebrite
or TWC to predict these events or how they may affect Cellebrite or
TWC. Except as required by law, neither Cellebrite nor TWC has any
duty to, and does not intend to, update or revise the
forward-looking statements in this communication or elsewhere after
the date this communication is issued. In light of these risks and
uncertainties, investors should keep in mind that results, events
or developments discussed in any forward-looking statement made in
this communication may not occur. You are cautioned not to place
undue reliance upon any forward-looking statements, which speak
only as of the date made. TWC and Cellebrite undertake no
commitment to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by law.
In addition to the factors previously disclosed in Cellebrite's
reports filed with the SEC and those identified elsewhere in this
press release, the following factors, among others, could cause
results to differ materially from the forward-looking statements in
this release or historical performance: (1) risks and uncertainties
related to the inability of the parties to successfully or timely
consummate the Business Combination, including the risk that any
required regulatory approvals or stockholder approvals of TWC are
not obtained, are delayed or are subject to unanticipated
conditions that could adversely affect the combined company or the
expected benefits of the business combination is not obtained; (2)
the number of redemption requests made by TWC's public
stockholders; (3) the ability to meet Nasdaq's listing standards
(or the standards of any other securities exchange on which
securities of the public entity are listed) following the
consummation of the Business Combination; the inability to complete
the private placement of ordinary shares of Cellebrite to certain
institutional accredited investors; (4) the risk that the proposed
transaction disrupts current plans and operations of Cellebrite as
a result of the announcement and consummation of the transactions
described herein; (5) the ability to recognize the anticipated
benefits of the proposed Business Combination, which may be
affected by, among other things, competition, the ability of the
combined company to grow and manage growth profitably, maintain
relationships with customers and suppliers and retain its
management and key employees; the duration and global impact of
COVID-19; (6) costs related to the proposed business
combination; the outcome of any legal proceedings that may be
instituted against Cellebrite, TWC, or any of their respective
directors or officers, regarding the proposed transaction; (7) the
ability of Cellebrite or the combined company to issue equity or
equity-linked securities in connection with the proposed business
combination or in the future; the failure to realize anticipated
pro forma results and underlying assumptions, including with
respect to estimated stockholder redemptions and purchase price and
other adjustments; (8) changes in applicable laws or regulations;
(9) the possibility that Cellebrite may be adversely affected by
other economic, business, and/or competitive factors; and (10)
other risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in
forward-looking statements indicated from time to time in other
documents filed or to be filed with the SEC by TWC and in the
registration statement on Form F-4 relating to the business
combination filed by Cellebrite on May 17,
2021, as amended.
This communication is not intended to be all-inclusive or to
contain all the information that a person may desire in considering
an investment in Cellebrite and is not intended to form the basis
of an investment decision in Cellebrite. All subsequent written and
oral forward-looking statements concerning Cellebrite and TWC, the
proposed transaction or other matters and attributable to
Cellebrite and TWC or any person acting on their behalf are
expressly qualified in their entirety by the cautionary statements
above.
Contacts:
Investors
Anat Earon-Heilborn
VP Investor Relations | Cellebrite DI Ltd.
+972 73 394 8440
investors@cellebrite.com
Media
Adam Jaffe
VP of Global Communications
+1 973 206 7643
adam.jaffe@cellebrite.com
Cellebrite DI
Ltd.
|
Second Quarter
2021 Results Summary
|
(U.S Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
59,168
|
|
45,770
|
|
112,451
|
|
84,504
|
Gross
profit
|
|
49,100
|
|
37,551
|
|
94,184
|
|
66,646
|
Gross
margin
|
|
83.0%
|
|
82.0%
|
|
83.8%
|
|
78.9%
|
Operating income
(loss)
|
|
8,221
|
|
1,665
|
|
12,608
|
|
(4,833)
|
Operating
margin
|
|
13.9%
|
|
3.6%
|
|
11.2%
|
|
(5.7)%
|
Cash flow from
operations
|
|
14,089
|
|
22,780
|
|
14,307
|
|
17,760
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Data(1):
|
|
|
|
|
|
|
|
|
Operating
income
|
|
12,115
|
|
7,324
|
|
22,310
|
|
4,443
|
Operating
margin
|
|
20.5%
|
|
16.0%
|
|
19.8%
|
|
5.3%
|
Adjusted
EBITDA
|
|
13,379
|
|
8,443
|
|
24,667
|
|
6,584
|
Adjusted EBITDA
margin
|
|
22.6%
|
|
18.4%
|
|
21.9%
|
|
7.8%
|
|
|
|
|
|
|
|
|
|
(1) For a
reconciliation of operating income (loss) to non-GAAP operating
income and net income (loss) to adjusted EDITDA, see the table at
the end of this press release titled "Reconciliation of GAAP to
Non-GAAP Financial Information."
|
Cellebrite DI
Ltd.
|
Condensed
Consolidated Balance Sheets
|
(U.S. Dollars in
thousands)
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
166,286
|
|
128,709
|
Restricted
cash
|
|
5,107
|
|
5,137
|
Short-term
deposits
|
|
79,848
|
|
108,928
|
Trade receivables
(net of allowance for doubtful accounts of $639 as of June 30, 2021
and $616 as of December 31, 2020)
|
52,283
|
|
66,324
|
Prepaid expenses and
other current assets
|
|
9,919
|
|
7,439
|
Contract acquisition
costs
|
|
3,761
|
|
2,979
|
Inventories
|
|
4,857
|
|
4,754
|
Total current
assets
|
|
322,061
|
|
324,270
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Other non-current
assets
|
|
4,872
|
|
565
|
Deferred tax assets,
net
|
|
8,114
|
|
7,372
|
Property and
equipment, net
|
|
16,608
|
|
16,106
|
Intangible assets,
net
|
|
8,788
|
|
6,611
|
Goodwill
|
|
9,463
|
|
9,463
|
Total non-current
assets
|
|
47,845
|
|
40,117
|
|
|
|
|
|
Total
assets
|
|
369,906
|
|
364,387
|
|
|
|
|
|
|
|
|
|
|
Liabilities,
redeemable convertible preferred shares and shareholders'
equity
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Trade
payables
|
|
4,419
|
|
4,727
|
Other accounts
payable and accrued expenses
|
|
44,448
|
|
49,112
|
Deferred
revenues
|
|
102,327
|
|
105,543
|
Total current
liabilities
|
|
151,194
|
|
159,382
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
Liability for
employees' severance benefits
|
|
363
|
|
366
|
Other long-term
liabilities
|
|
6,538
|
|
6,191
|
Long-term deferred
revenues
|
|
33,038
|
|
33,439
|
Total long-term
liabilities
|
|
39,939
|
|
39,996
|
|
|
|
|
|
Total
liabilities
|
|
191,133
|
|
199,378
|
|
|
|
|
|
|
|
|
|
|
Redeemable
convertible preferred shares
|
|
101,205
|
|
101,205
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share
capital
|
|
* -
|
|
* -
|
Additional paid-in
capital
|
|
37,815
|
|
34,226
|
Treasury stock, NIS
0.00001 par value; 43,540 ordinary shares
|
|
(85)
|
|
(85)
|
Accumulated other
comprehensive income
|
|
110
|
|
1,321
|
Retained
earnings
|
|
39,728
|
|
28,342
|
Total shareholders'
equity
|
|
77,568
|
|
63,804
|
|
|
|
|
|
Total liabilities,
redeemable convertible preferred shares and shareholders'
equity
|
369,906
|
|
364,387
|
|
|
|
|
|
|
|
|
|
|
* Less
than US$ 1.
|
|
|
|
|
Cellebrite DI
Ltd.
|
Condensed
Consolidated Statements of Income
|
(U.S Dollars in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
June
30,
|
|
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Subscription services
and technical support
|
29,870
|
|
24,405
|
|
58,844
|
|
47,002
|
Term-license
|
11,588
|
|
6,763
|
|
23,135
|
|
9,689
|
Perpetual license and
others
|
10,382
|
|
10,506
|
|
18,125
|
|
18,466
|
Professional services
|
7,328
|
|
4,096
|
|
12,347
|
|
9,347
|
Total
revenue
|
59,168
|
|
45,770
|
|
112,451
|
|
84,504
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Subscription services
and technical support
|
2,192
|
|
2,268
|
|
4,674
|
|
4,463
|
Term-license
|
538
|
|
222
|
|
895
|
|
359
|
Perpetual license and
others
|
1,816
|
|
2,117
|
|
2,876
|
|
4,540
|
Professional
services
|
5,522
|
|
3,612
|
|
9,822
|
|
8,496
|
Total cost of
revenue
|
10,068
|
|
8,219
|
|
18,267
|
|
17,858
|
|
|
|
|
|
|
|
|
Gross
profit
|
49,100
|
|
37,551
|
|
94,184
|
|
66,646
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
15,388
|
|
13,702
|
|
30,281
|
|
26,707
|
Sales and
marketing
|
18,509
|
|
13,044
|
|
35,027
|
|
28,380
|
General and
administrative
|
6,982
|
|
9,140
|
|
16,268
|
|
16,392
|
Total operating
expenses
|
40,879
|
|
35,886
|
|
81,576
|
|
71,479
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
8,221
|
|
1,665
|
|
12,608
|
|
(4,833)
|
Financial income,
net
|
496
|
|
1,015
|
|
862
|
|
1,157
|
Income (loss) before
income tax expense
|
8,717
|
|
2,680
|
|
13,470
|
|
(3,676)
|
Income tax
expense
|
921
|
|
717
|
|
2,084
|
|
1,618
|
Net income
(loss)
|
7,796
|
|
1,963
|
|
11,386
|
|
(5,294)
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
Unrealized gain
(loss) on hedging transactions, net of taxes of $(173) and $111 for
the Six-month period ended June 30, 2021 and 2020,
respectively.
|
120
|
|
644
|
|
(1,266)
|
|
815
|
Currency translation
adjustments
|
(407)
|
|
(508)
|
|
55
|
|
(2)
|
Total other
comprehensive income (loss), net of tax
|
(287)
|
|
136
|
|
(1,211)
|
|
813
|
Total other
comprehensive income (loss)
|
7,509
|
|
2,099
|
|
9,460
|
|
(4,481)
|
|
|
|
|
|
|
|
|
Cellebrite DI
Ltd.
|
Condensed
Consolidated Statements of Cash Flow
|
(U.S. Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
7,796
|
|
1,963
|
|
11,386
|
|
(5,294)
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Employees' stock
option compensation
|
|
1,703
|
|
2,084
|
|
3,402
|
|
3,906
|
Depreciation and
amortization
|
|
1,698
|
|
1,506
|
|
3,180
|
|
2,657
|
Deferred income
taxes
|
|
134
|
|
417
|
|
(569)
|
|
923
|
Decrease in liability
for severance benefits, net
|
|
7
|
|
10
|
|
(3)
|
|
(1)
|
Decrease in trade
receivables
|
|
7,472
|
|
659
|
|
13,709
|
|
4,125
|
Increase in deferred
revenue
|
|
(3,940)
|
|
10,789
|
|
(2,692)
|
|
11,347
|
Increase in long term
other assets
|
|
(2,559)
|
|
12
|
|
(4,308)
|
|
(12)
|
Increase in other
receivables
|
|
(3,149)
|
|
881
|
|
(5,158)
|
|
255
|
Increase in
inventories
|
|
15
|
|
(567)
|
|
(123)
|
|
(996)
|
Decrease in trade
payables
|
|
(235)
|
|
(1,898)
|
|
(294)
|
|
(2,091)
|
Decrease in other
accounts payable
|
|
4,951
|
|
6,924
|
|
(4,570)
|
|
2,941
|
Increase in other
long-term liabilities
|
|
193
|
|
-
|
|
347
|
|
-
|
Net cash provided by
operating activities
|
|
14,089
|
|
22,780
|
|
14,307
|
|
17,760
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(1,546)
|
|
(1,629)
|
|
(2,854)
|
|
(3,627)
|
Payment related to
business combination, net of cash acquired
|
|
-
|
|
-
|
|
-
|
|
(15,046)
|
Purchase of
intangible assets
|
|
(3,000)
|
|
-
|
|
(3,000)
|
|
-
|
Short term deposits,
net
|
|
21,573
|
|
(46,153)
|
|
29,080
|
|
(24,156)
|
Net cash provided by
(used in) investing activities
|
|
17,027
|
|
(47,782)
|
|
23,226
|
|
(42,829)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
treasury stock
|
|
-
|
|
(85)
|
|
-
|
|
(85)
|
Dividend
paid
|
|
-
|
|
-
|
|
-
|
|
(10,000)
|
Exercise of options
to shares
|
|
187
|
|
-
|
|
187
|
|
-
|
Net cash provided by
(used in) financing activities
|
|
187
|
|
(85)
|
|
187
|
|
(10,085)
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
|
31,303
|
|
25,087
|
|
37,720
|
|
(35,154)
|
Net effect of
Currency Translation on cash and cash equivalents
|
|
125
|
|
(85)
|
|
(173)
|
|
(137)
|
Cash and cash
equivalents and restricted cash at beginning of period
|
|
139,965
|
|
71,394
|
|
133,846
|
|
81,693
|
Cash and cash
equivalents and restricted cash at end of period
|
|
171,393
|
|
46,392
|
|
171,393
|
|
46,392
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
|
Cash paid for
taxes
|
|
2,254
|
|
484
|
|
5,661
|
|
633
|
Non-cash
activities
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment on suppliers' credit
|
|
19
|
|
88
|
|
184
|
|
195
|
|
|
|
|
|
|
|
|
|
Cellebrite DI
Ltd.
|
Reconciliation of
GAAP to Non-GAAP Financial Information
|
(U.S. Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
8,221
|
|
1,665
|
|
12,608
|
|
(4,833)
|
|
One-time expense
(Former co-founder compensation)
|
|
-
|
|
1,519
|
|
-
|
|
1,519
|
|
Share based
compensation expense
|
|
2,363
|
|
2,127
|
|
4,062
|
|
3,949
|
|
Amortization of
intangible assets
|
|
435
|
|
387
|
|
823
|
|
516
|
|
Acquisition related
costs
|
|
1,096
|
|
1,626
|
|
4,817
|
|
3,292
|
|
Non-GAAP operating
income
|
|
12,115
|
|
7,324
|
|
22,310
|
|
4,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
7,796
|
|
1,963
|
|
11,386
|
|
(5,294)
|
|
Financial
Income
|
|
(496)
|
|
(1,015)
|
|
(862)
|
|
(1,157)
|
|
Tax
expenses
|
|
921
|
|
717
|
|
2,084
|
|
1,618
|
|
Depreciation and
amortization
|
|
1,699
|
|
1,506
|
|
3,180
|
|
2,657
|
|
One-time expense
(Former co-founder compensation)
|
|
-
|
|
1,519
|
|
-
|
|
1,519
|
|
Share based
compensation expense
|
|
2,363
|
|
2,127
|
|
4,062
|
|
3,949
|
|
Acquisition related
costs
|
|
1,096
|
|
1,626
|
|
4,817
|
|
3,292
|
|
Adjusted
EBITDA
|
|
13,379
|
|
8,443
|
|
24,667
|
|
6,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Cellebrite