Why Software Company Cellebrite Shares Are Up Today

Benzinga05-24

Cellebrite DI Ltd. (NASDAQ:CLBT) shares are trading higher after it reported first-quarter FY24 results.

Revenue rose 26% Y/Y to $89.6 million, beating the consensus of $87.8 million. Annual Recurring Revenue (ARR) stood at $331.8 million, up 27% Y/Y.

Yossi Carmil, Cellebrite’s CEO said, “Looking ahead, we continue to see customer budgets trend favorably in support of their plans to enhance and expand their digital investigative capabilities with our solutions over the coming quarters. We are excited about our prospects over the coming quarters and have reaffirmed our outlook for this year.”

Subscription revenue rose 29% to $79.2 million in the quarter. Adjusted gross profit stood at $76.8 million, with a margin of 85.7% in the quarter.

Adjusted EBITDA surged to $17.6 million, with a margin expanding Y/Y from 10.3% to 19.7%. Adjusted EPS $0.08 topped the consensus of $0.06.

Dana Gerner, Cellebrite’s CFO, said, “We expect to drive solid ARR and revenue expansion in the second quarter, which we anticipate will support higher adjusted EBITDA versus the second quarter of 2023. Although it is still early in the year, we believe we are well positioned to achieve our full-year 2024 targets with an expectation that we will deliver the majority of our revenue and adjusted EBITDA in the second half of the year.”

Outlook: In the second quarter, Cellebrite expects to drive solid ARR and revenue expansion and sees revenue of $90 million-$94 million (vs. est. $89.405 million).

The company continues to expect FY24 revenue of $370 million-$380 million (vs. estimate: $376.126 million).

Investors can gain exposure to the stock via ARK Israel Innovative Technology ETF (BATS:IZRL).

Price Action: CLBT shares are up 3.34% at $12.00 at the last check Thursday.

Photo via Shutterstock

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