Filed by Cellebrite DI Ltd.
Pursuant to Rule 425 under the Securities Act
of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: TWC Tech Holdings II Corp.
Commission File No. 001-39499
Date: August 12, 2021
Cellebrite Announces Second Quarter 2021 Results
Annual Recurring Revenue of $159 million, up
46% year-over-year
Revenue of $59.2 million, up 29% year-over-year
Net income of $7.8 million; Adjusted EBITDA
of $13.4 million, 23% Adjusted EBITDA margin
Merger with TWC Tech Holdings II Corp. on track
to Close in Third Quarter
PETAH TIKVA, ISRAEL, August 12, 2021 --
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
|
|
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
|
|
11
TWC Tech Holdings II (NASDAQ:TWCT)
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From May 2024 to Jun 2024
TWC Tech Holdings II (NASDAQ:TWCT)
Historical Stock Chart
From Jun 2023 to Jun 2024