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• ARR Growth: 23% year-on-year increase to $408 million.

• Adjusted EBITDA Growth: 34% year-on-year growth, resulting in a 22% margin.

• Revenue: $107.5 million, a 20% increase from the prior year.

• Subscription Revenue Growth: 21% increase, with 89% of total revenue from subscription-based solutions.

• Gross Margin: 84.4%, in line with the full-year target range.

• Operating Expenses: $68.8 million, a 13% year-over-year increase.

• Non-GAAP Net Income: $26.2 million or $0.10 per diluted share.

• Cash and Investments: $509.8 million, an increase of $26 million from the previous quarter.

• Free Cash Flow: $18.5 million, up from the previous year.

• Q2 ARR Guidance: Expected range of $416 million to $426 million, representing 20% to 23% growth.

• Q2 Revenue Guidance: Expected range of $110 million to $116 million, translating to 15% to 21% growth.

• Q2 Adjusted EBITDA Guidance: Expected range of $26 million to $28 million, approximately 24% margin.

• Warning! GuruFocus has detected 2 Warning Signs with CLBT.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cellebrite DI Ltd (NASDAQ:CLBT) reported a strong 23% year-on-year ARR growth in the first quarter of 2025.

• The company achieved a 34% year-on-year growth in adjusted EBITDA, resulting in a 22% margin.

• Cellebrite's Inseyets solution continues to gain traction, with over 30% of the install base converted and on track to hit a 50% conversion by 2025.

• The Guardian product saw its third consecutive quarter of over 100% year-on-year ARR growth.

• Cellebrite's global diversification and range of solutions across various sectors contributed to strong performance in the US state and local, Latin America, and Asia Pacific regions.

Negative Points

• The US federal segment and EMEA geography experienced modest shortfalls, impacting overall performance.

• The federal business environment remains volatile, with spending constraints affecting short-term performance.

• Gross margins declined by 130 basis points year-over-year due to higher incremental costs for hosting and investments in customer success organizations.

• Operating expenses increased by 13% year-over-year, driven by higher personnel costs and increased event and consulting expenses.

• The company adjusted the low end of its full-year 2025 revenue guidance due to the timing of new business and lower one-time professional services revenue.

Q & A Highlights

Q: Are you seeing any deterioration in the demand environment due to policy changes or tariffs compared to 90 days ago? A: Thomas Hogan, Interim CEO: There's no material change from a leadership decision-making perspective. The pipeline and new opportunities are surfacing, given the administration's priorities. Crime is not going away, and the need for our software is increasing. We remain optimistic about future opportunities in the federal sector.