Welcome to Gaia! ::

Q: What are the main challenges your customers face, and how is Cellebrite addressing them? A: Marcus Jewell, Chief Revenue Officer, highlighted that 90% of cases now require digital assets for proof, leading to increased demand for efficiency tools. Cellebrite's solutions, such as Inseyets and Pathfinder, help expedite case closures by providing analytical platforms and lightweight products for field investigators.

Q: Can you quantify the impact of exiting specific countries and discuss the 30% unlock attach rate for Inseyets? A: Dana Gerner, CFO, stated that exiting certain countries had less than a 2% impact in 2024 and is expected to be less than 1% in 2025 and 2026. To drive higher unlock attach rates, Cellebrite offers a variety of Inseyets packages to cater to agencies of all sizes, encouraging adoption across the public sector.

Q: How is Cellebrite progressing with the migration to the C2C platform, and what initiatives are in place for 2025? A: Dana Gerner, CFO, and Marcus Jewell, CRO, discussed the importance of the C2C platform, which connects Inseyets, Guardian, and Pathfinder. Cellebrite is investing in specialist sales and running its own events to increase awareness and adoption, aiming to have 50% of the install base on Inseyets by the end of 2025.

Q: What is the opportunity for Cellebrite with FedRAMP certification, and how does it impact federal revenue? A: Thomas Hogan, Interim CEO, explained that achieving FedRAMP high-level certification could double Cellebrite's total addressable market (TAM) in the federal sector. Currently, federal accounts for about 20% of revenue, and FedRAMP certification will enable Cellebrite to participate in more programs, potentially accelerating growth in 2026.

For the first quarter, we expect solid ARR growth despite a couple of transitory headwinds. First, as you know, we set a high bar for ethics and integrity in terms of where we conduct business. Our decisions to exit certain countries are expected to modestly impact our first quarter results, and this has been factored into the Q1 guidance. Nevertheless, given the broader strength of our customer relationships, we see potential to drive modest continuous improvement in our retention rate in 2025 against the 92% level we reported in '24.

Second, although we review certain and ongoing geopolitical changes in the US and elsewhere as a potential net positive for Cellebrite over the next several years, the timing of these real-time regime changes is expected to modestly delay Q1 purchasing activity within certain agencies. Again, this dynamic is fully contemplated within our Q1 outlook. Even with these short-term headwinds and normal seasonality, we still expect ARR to grow between 22% and 24% to $406 million to $411 million in the first quarter.

We expect full year 2025 revenue to range from $480 million to $490 million, which represents 20% to 22% growth over '24. We anticipate that growth from subscription software will be complemented by modest expansion of nonrecurring professional services and hardware sales. We expect Q1 '25 revenue in the range of $107 million and $112 million, which is 19% to 25% higher than the first quarter of 2024. In line with historical trends, we expect approximately 53% to 55% of full year revenue to be generated in the second half of the year. These dynamics primarily reflect our expectations for product mix in conjunction with the timing of typical year-end spending activities associated with our US federal customers in September and most other accounts at the December year-end. We expect our 2025 gross margins to be in the 84% to 85% range as we increase the investment required to build out the hosting infrastructure to further scale our SaaS offering and expand our customer success organization.

We anticipate 2025 non-GAAP operating costs in the range of $295 million to $310 million with a relatively moderate sequential increase from Q4 '24 to Q1 '25. We are focused on maintaining a very attractive profit profile. We expect 2025 adjusted EBITDA in the range of $113 million to $123 million or 24% to 25% of total revenue. We expect higher adjusted EBITDA and higher adjusted EBITDA margins during the second half of the year, which aligns with historical trends in our 2025 top line outlook. We expect Q1 adjusted EBITDA ranging from $22 million to $24 million, which supports year-over-year margin improvement to approximately 21%. In terms of our weighted average diluted share count, we expect Q1 to be approximately 250 million to 255 million shares with 255 million to 265 million outstanding for the full year.

For the first quarter, we expect solid ARR growth despite a couple of transitory headwinds. First, as you know, we set a high bar for ethics and integrity in terms of where we conduct business. Our decisions to exit certain countries are expected to modestly impact our first quarter results, and this has been factored into the Q1 guidance. Nevertheless, given the broader strength of our customer relationships, we see potential to drive modest continuous improvement in our retention rate in 2025 against the 92% level we reported in '24.

Second, although we review certain and ongoing geopolitical changes in the US and elsewhere as a potential net positive for Cellebrite over the next several years, the timing of these real-time regime changes is expected to modestly delay Q1 purchasing activity within certain agencies. Again, this dynamic is fully contemplated within our Q1 outlook. Even with these short-term headwinds and normal seasonality, we still expect ARR to grow between 22% and 24% to $406 million to $411 million in the first quarter.

We expect full year 2025 revenue to range from $480 million to $490 million, which represents 20% to 22% growth over '24. We anticipate that growth from subscription software will be complemented by modest expansion of nonrecurring professional services and hardware sales. We expect Q1 '25 revenue in the range of $107 million and $112 million, which is 19% to 25% higher than the first quarter of 2024. In line with historical trends, we expect approximately 53% to 55% of full year revenue to be generated in the second half of the year. These dynamics primarily reflect our expectations for product mix in conjunction with the timing of typical year-end spending activities associated with our US federal customers in September and most other accounts at the December year-end. We expect our 2025 gross margins to be in the 84% to 85% range as we increase the investment required to build out the hosting infrastructure to further scale our SaaS offering and expand our customer success organization.

We anticipate 2025 non-GAAP operating costs in the range of $295 million to $310 million with a relatively moderate sequential increase from Q4 '24 to Q1 '25. We are focused on maintaining a very attractive profit profile. We expect 2025 adjusted EBITDA in the range of $113 million to $123 million or 24% to 25% of total revenue. We expect higher adjusted EBITDA and higher adjusted EBITDA margins during the second half of the year, which aligns with historical trends in our 2025 top line outlook. We expect Q1 adjusted EBITDA ranging from $22 million to $24 million, which supports year-over-year margin improvement to approximately 21%. In terms of our weighted average diluted share count, we expect Q1 to be approximately 250 million to 255 million shares with 255 million to 265 million outstanding for the full year.

For the first quarter, we expect solid ARR growth despite a couple of transitory headwinds. First, as you know, we set a high bar for ethics and integrity in terms of where we conduct business. Our decisions to exit certain countries are expected to modestly impact our first quarter results, and this has been factored into the Q1 guidance. Nevertheless, given the broader strength of our customer relationships, we see potential to drive modest continuous improvement in our retention rate in 2025 against the 92% level we reported in '24.

Second, although we review certain and ongoing geopolitical changes in the US and elsewhere as a potential net positive for Cellebrite over the next several years, the timing of these real-time regime changes is expected to modestly delay Q1 purchasing activity within certain agencies. Again, this dynamic is fully contemplated within our Q1 outlook. Even with these short-term headwinds and normal seasonality, we still expect ARR to grow between 22% and 24% to $406 million to $411 million in the first quarter.

We expect full year 2025 revenue to range from $480 million to $490 million, which represents 20% to 22% growth over '24. We anticipate that growth from subscription software will be complemented by modest expansion of nonrecurring professional services and hardware sales. We expect Q1 '25 revenue in the range of $107 million and $112 million, which is 19% to 25% higher than the first quarter of 2024. In line with historical trends, we expect approximately 53% to 55% of full year revenue to be generated in the second half of the year. These dynamics primarily reflect our expectations for product mix in conjunction with the timing of typical year-end spending activities associated with our US federal customers in September and most other accounts at the December year-end. We expect our 2025 gross margins to be in the 84% to 85% range as we increase the investment required to build out the hosting infrastructure to further scale our SaaS offering and expand our customer success organization.

We anticipate 2025 non-GAAP operating costs in the range of $295 million to $310 million with a relatively moderate sequential increase from Q4 '24 to Q1 '25. We are focused on maintaining a very attractive profit profile. We expect 2025 adjusted EBITDA in the range of $113 million to $123 million or 24% to 25% of total revenue. We expect higher adjusted EBITDA and higher adjusted EBITDA margins during the second half of the year, which aligns with historical trends in our 2025 top line outlook. We expect Q1 adjusted EBITDA ranging from $22 million to $24 million, which supports year-over-year margin improvement to approximately 21%. In terms of our weighted average diluted share count, we expect Q1 to be approximately 250 million to 255 million shares with 255 million to 265 million outstanding for the full year.

For the first quarter, we expect solid ARR growth despite a couple of transitory headwinds. First, as you know, we set a high bar for ethics and integrity in terms of where we conduct business. Our decisions to exit certain countries are expected to modestly impact our first quarter results, and this has been factored into the Q1 guidance. Nevertheless, given the broader strength of our customer relationships, we see potential to drive modest continuous improvement in our retention rate in 2025 against the 92% level we reported in '24.

Second, although we review certain and ongoing geopolitical changes in the US and elsewhere as a potential net positive for Cellebrite over the next several years, the timing of these real-time regime changes is expected to modestly delay Q1 purchasing activity within certain agencies. Again, this dynamic is fully contemplated within our Q1 outlook. Even with these short-term headwinds and normal seasonality, we still expect ARR to grow between 22% and 24% to $406 million to $411 million in the first quarter.

We expect full year 2025 revenue to range from $480 million to $490 million, which represents 20% to 22% growth over '24. We anticipate that growth from subscription software will be complemented by modest expansion of nonrecurring professional services and hardware sales. We expect Q1 '25 revenue in the range of $107 million and $112 million, which is 19% to 25% higher than the first quarter of 2024. In line with historical trends, we expect approximately 53% to 55% of full year revenue to be generated in the second half of the year. These dynamics primarily reflect our expectations for product mix in conjunction with the timing of typical year-end spending activities associated with our US federal customers in September and most other accounts at the December year-end. We expect our 2025 gross margins to be in the 84% to 85% range as we increase the investment required to build out the hosting infrastructure to further scale our SaaS offering and expand our customer success organization.

We anticipate 2025 non-GAAP operating costs in the range of $295 million to $310 million with a relatively moderate sequential increase from Q4 '24 to Q1 '25. We are focused on maintaining a very attractive profit profile. We expect 2025 adjusted EBITDA in the range of $113 million to $123 million or 24% to 25% of total revenue. We expect higher adjusted EBITDA and higher adjusted EBITDA margins during the second half of the year, which aligns with historical trends in our 2025 top line outlook. We expect Q1 adjusted EBITDA ranging from $22 million to $24 million, which supports year-over-year margin improvement to approximately 21%. In terms of our weighted average diluted share count, we expect Q1 to be approximately 250 million to 255 million shares with 255 million to 265 million outstanding for the full year.

if I read between the lines, sort of I think the question you're asking is, gosh, we just saw a print from Palantir with some blowaway numbers. Why do you have any headwinds? And I would emphasize two things. Number one, in Dana's comments, she also -- we are highly convinced that these changes are actually going to lead to upside and tailwinds for us once all the disruption in Washington settles down. And the reason is if you look at very topical issues like fentanyl traffic and deaths or you look at issues around border control, I mean, these are areas where Cellebrite's assets can play an enormously helpful positive role. So we think some of the themes from the administration changes will actually help us. But there's been -- as we -- I think we all know, if you follow the news, there's been a fair amount of disruption in leadership in a lot of these key agencies that's caused -- and I guess, actually, the last point I'd make is those -- that short list of things are not things that are at risk. These are opportunities and transactions that we have very high confidence will still close. So that's it.

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