Cellebrite DI (CLBT) 8 Aug 232023 Q2 Earnings call transcript

Welcome to the Cellebrite's Second Quarter 2023 Financial Results Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions]

I would now like to turn the call over to your first speaker today, Mr. Andrew Kramer. Mr. yours. is floor the Kramer,

Thank you second everybody Cellebrite's and much, XXXX financial Ashley, quarter welcome results to very call.

Joining me Gerner, Dana CEO; Cellebrite's today are Cellebrite's Yossi CFO. Carmil, and

advance accompanies There follow to prepared is presentation commentary. in that a remarks. webcast slide our Please the viewer slides the our

our a available call will call. replay after recording be made in of our slide call website is the were referring number the We This we being on shortly the to out remarks. recorded and will

A X. financial for number tables Relations are XXXX of quarter today's GAAP Slide non-GAAP the and with the start financial on slide the available financial copy press release of each XXXX, of the first statements to XXXX information at Let's quarter and website Investor investors.cellebrite.com. supplemental quarterly the quarter and including second and presentation of reconciliations the and XXXX

otherwise Also call second basis as provided historical the financial quarter metrics stated, quarter as discussed comparisons noted. unless only metrics of today's second outlook be well unless a otherwise XXXX over non-GAAP the be will on on our our in all financial XXXX that will conference

statements. statements the addition, that not In during constitute of forward-looking this historical that made are facts call please statements note

results cause forward-looking also that the All and occur. actual forward-looking from those subject to expressed and/or and or by forecasts. could other risks results could materially uncertainties are statements to factors implied matters to historical from cause statements They differ not

XX, Company reflect or Risk not and annual on with any report future of update on the filed these are Company's to XXXX. the circumstances. statements does Some elsewhere Form in the The statements events to under April Factors forward-looking undertake forward-looking discussed XX-F heading SEC

call. financial important agenda progress hear, and our increased X for you made strong XXXX very have expectations. And number will Slide full strategic QX financial performance, the as provides delivered year we today's

Yossi Cellebrite's With I'd call CEO. over that to the like background, turn now Carmil, at the to

in joining for around intelligence excited suite thank second leading globe. Thank which discuss you our results you, us the customers all quarter to private to success I'm digital today. Andy, sector the and delivering continued industry's Look, and our public software highlight

Slide reported all results strategic on critical areas success. financial X, which an while performance We progress fronts. illustrated number to excellent we our on strong in quarter making second As several delivered are long-term

million of straight of performance financial We and at driven which large QX by by XX revenue QX. deals And million XXX%, Our adjusted each closed QX of highlighted investment XXX%. software $XXX million. ended net based a from XX was ARR than following $XX.X $XXX up revenue nearly subscription revenue above the grew XX% Total retention KPIs. greater totaling quarter was with XX XX%. XX.X cash to or we growth Dollar million million, our $X.XX. non-GAAP was base marginal and EPS valued $X.X on lastly, EBITDA XX.X% of million

outlook for with And a of 'XX and increased result, our us, healthy the as year Now second the year. of a we into financial a in the move stronger behind seasonally we now strong market. half have half first

X, QX. Slide to in Turning relationship Cellebrite strong remains customer

powerful Our customer to driven market. the ongoing and go-to-market in winning continue investment activities in enable us innovation

progress within their our our the growth investigative forensic of Our our demonstrates customers second the our extending scope into ongoing in and our units. revenue in of quarter success XXXX relationship units extending digital reach

the powered of we in straight ARR QX strong our our revenue delivered In Americas Geographically, quarter private were high-teens the by second revenue growth expansion, EMEA. and sector addition public to and growth sector.

the over last deals the year. period year our the XXXX last of number terms below grew large deals, average slightly quarter though size of the deals was large same of In our second even XX%

or tool evidence XX% included our than more approximately management of or deals solution included large Importantly, investigative Pathfinder analytics Premium our and Guardian, half our both. either

the crime of police and the Around wide criminals. by increasingly strained increasingly globe, overall, heightened police safety public devices other The on operation interest sophisticated digital manpower is smartphones rising spending and in challenged a robust. evidence and So rates, range across limited remains solution proliferation intelligence environment priorities. of digital around

more in close Solutions allocating to to in the workflow USA, and parts their in agencies continue safety, sector, will key did public law Europe, continue tailwinds and other globe community And enforcement Western for close public And gap America, the meet more successfully see to safe, favorable that as help they of the Asia-Pacific Cellebrite a than and digital customers Latin the intelligence modernize result, KPIs. year. advance keep around money invest in with important we cases, budget region this last investigative the solutions to

to Cellebrite progress In QX strategic the several over months. performance, past addition made strong our important

digital mobile So of announced in Review access to and evidence units broadest the generation Collect enables introduce solution forensic you revolutionary June, next Ultra, extract phones. we to lawfully our range plans from UFED a digital and that

see on UFED a installed Ultra for low adoption room continued to which extraction our as of ease solutions, uptake use, great solution. system market previously base. across advanced premium advanced a And we've provides important, UFED full still the access that workflows, of the even our most and capability smartphones file deliver to full only on is to simplified smartphones, was in most significant suite license available just and designed the Premium greater for our

solution. in and that iOS, across this these and multi-year given technological capabilities our opportunity is And to anchored remains we both see and differentiated leadership by dynamics, iPhone, substantial upgrade Now, unmatched Android. Collect on Review sector upsell

to and investigators. make for with features are and easier it Management announced taking recently solution. for functionalities case We Evidence examiners more We our steps new important digital share efficient workflow enhance and evidence Guardian that to also Guardian, their

quarter as of starting intelligence highlight cloud-based Guardian Between Premium we Service surface wins Now, great our solutions. the I of the potential revenue will couple to offering, a Guardian are digital in a second and of a moment. just scratch

and more high of delivery our technical solution. support value out accelerating the We cloud-based are plans to our infrastructure build

quarter The artificial of analytics by our second also was investigative solution. continued marked power Pathfinder, adoption intelligence

this customer and Cellebrite's R&D, we ARR the in primary our significantly base capitalize mobilizing are on We growth Accordingly, We and our we on our that marketing to digital this are second represent faster and on augmenting that year track units units. forensic growth believe effectively investigative sales engine ensure to Pathfinder drive expand resources growth. opportunity. efficiently

in forensic our platform Physical our vast Review, volume of On makes and to recognize evidence is investigative data relevant the we just applications, units the of investment to learning than machine and advanced easier across R&D returns. it continued front, devices, more intelligence benefits within identify capabilities, important In Analyzer market it Pathfinder Collect analytics. warrant with which to leading broadest digital have and range that for our strengthen the artificial faster digital digital

this as conjunction and Tom And the at as chapter the that intelligence In reporting with proven into digital results corporate experience Executive support of we work next global including is enhance of most appointment Equity. the of moves leader. impact governance our believe Hogan a Cellebrite's recent we veteran growth it his Cellebrite and success, Vista Tom market a track record of Chairman. our today, also action announced as with

largest forward, I team value stakeholders. in board with broader shape look up market the we work our and forward the our council creation and support scale our together Cellebrite our help and Now, for and business to strategy drive to as his drive

as Now, Tom's shareholder chairman, fortunate our we Director XX that longstanding Board continue Growth expand to are on the a appointment will former and of Shani board. of Cellebrite members, Israeli Directors serving Company's our also a Haim Partners,

help which success. Moving like quarter to key some to of the Slide I X, several deals drivers illustrate would second of review our

as customers steadily increasing. noted of by premium Now, is adoption earlier, existing

a of North agency, footprint American Pathfinder of along federal Now time law an to our engagement with resolution to critical this major quarter large on schedule a we with expansion accelerate initial premium ahead cases. enforcement

to will approximately expected capabilities is digital account capabilities. this this triple help supercharge $X And nearly to scale result, Solutions a nearly Intelligence critical million. at our Digital forensic its ARR investigative customer centralize its and as Cellebrite

expected we in deliver region in In terms ARR. to new of $XXX,XXX meaningful nearly new logos, the Asia-Pacific that a customer is want

This support capabilities forensic house deploying service activities service units Premium part as to forensic like efforts that briefly Guardian to investigative our of Pathfinder these for its UFED rather correctional to than two outsource regional in digital a buying also to into as own its agency our would strengths agencies. unit strong is illustrate to and deals reach digital highlight our extend new I success other in leveraging build centers.

selected serving Now the In advance DA sensitive wins, guardian police more factor to over Management enforcement efficiently law one to in Evidence as purchase other city's of as increase the Premium to they their for of a $XX,XXX modernize ARR double service Guardian department workflow track combined deal, by the office Cellebrite's this and evidence investigations. $XXX,XXX. U.S. digital mid-sized In to $XXX,XXX. to both a expected at deal, will than is city's ARR agencies

in mobile part service intensified results. last endpoint compliance legal, of from from sector, supports regulatory, its strategic for client's the U.S. its more activities. yielding six as phones, practice. on and QX, figure ARR And larger, the corporate digital low computers, data private of tangible range. provider and more its In use focus is into nearly this provider cloud sales double collection will applications forensic that And service inspector accounts expanded our a a

on to move update our Let's Slide X outlook. and

law helping points we agencies ahead, believe enforcement the pain we major advantages. following look to continue convert positioned into are As we three that well

First, is today increasing. data rapidly of the crimes volume complexity and involving digital

there limiting the inefficient enforcement growing on backlog third, And and public workflows the is of and accountability to a are devices. a greater of investigations law Second, scrutiny contributing operations. ethics speed of

into based conditions, XXXX the business we on market trajectory raised of date and results annual have half our our our this second favorable Now, guidance. year of to the

and in wallet updated gaining ARR existing more ongoing our with Our revenue primarily success share customers. reflect targets

investigative and and discussed, for adoption Review drive prospects by have augmented this I to and Collect management remain offering. for is our strong, As demand evidence analytics solutions attractive our

of So, EBITDA with major the revenue we XXXX. along will our that our combination generation our guidance the on growth enable in us spending and Dana additional last in updated details will adjusted deliver a cash And in expect year, short. share improvement over strong to discipline

in there is it size work are front in a lot be very hard substantial time very Cellebrite. ahead, in for The good Cellebrite, and still scope. to is us year shaping of a global of is while a Now, XXXX for opportunities exciting up

on second is to long-term. the workflow team on fulfilling positioned sustain solutions deliver lives, our stay plans, half saving And in focused protecting our our that customers for for and track of justice Cellebrite we'll Our keep value in and XXXX momentum modernize privacy. intelligence accelerating XXXX, support updated helps powerful over mission data our achieve well digital on ensuring to by our and we shareholder believe executing expectation creating the

the call her financial turn will I over to that, Dana with And for review.

you, Thank Yossi.

Let's offset growth 'XX. an at Americas a subscription by review second non-recurring Slide quarter revenue a quarter on X. was professional XX%. $XX.X Strong begin of relatively We followed by in EMEA growth XX% and revenue muted XX% was against reported our revenue Geographically, of of by million, in revenue led at services. XX%, declines both other increase the second

on XX% As versus subscriptions slide, came detailed ago. the from total XX% software our quarterly revenue of one year

revenue XX% subscription our total that more represents expect the revenue future. of foreseeable or for We

KPI Slide XX momentum an important looking future which and ARR revenue. for of the details trajectory is Cellebrite's our sales goals, forward

of relationships. customer to than the the ARR year customer successful management to our ago. Within QX. The from primarily than XX% due and As XX% grew came category, of and contribution customer the This $XXX Collect more evidence our expansion ARR to year-on-year end from noted, this investigative solutions. existing million solutions more analytics our our doubled one of expansion Review at was existing growth has Yossi from

revenue primarily is is As growth. noticed, of subscription growth due two ARR outpaced revenue growth, our the likely ARR XX% modestly historical our factors. to you counter to subscriptions lagging of trend which This

two balance the the associated end half of when maintenance was tied majority XXXX, third linearity In The agreements closed about the with the licenses deals of transition quarter two from XXXX. quarter QX First, of to of during were year's during of this to certain of of first the the approximately large at of difference who our sales. the QX difference months sales quarter. subscription were the customers second closed is the QX

acquisition which operating Slide compensation, XX exclude and historical margins trends details non-GAAP a and share-based gross assets intangible of expenses, the non-GAAP expenses. amortization related for

to 'XX from quarter the second XXX XX.X%, in higher offerings. basis margin improved margins points our due gross primarily Our of social XX.X% growth

our impact G&A of operating of personnel due one-time $XX.X on certain increase and operating the terms from quarter expenses, projects expenses. In expenses second prior the year, X% were and to costs million higher primarily

With a that and exchange said, which shekel. Israeli with changes activities in from of the the rates tied from ended unchanged We our June ago. place timing second favorable year quarter prudent expense to foreign management, benefited employees, hiring spending is XXX and

'XX the a flat year-end is total levels. As of relatively with reminder, our objective keep XXXX in to headcount

resulted XX, major claims of to Turning the last and spending it This Slide EBITDA a XX.X% quarter in million a is improvement margin $XX.X year, of exceeded over combination or quarter quarter. prudent adjusted revenue in basis. same our and the the on entering this higher

diluted Our QX $X.X $XX.X or $X.XX of non-GAAP non-GAAP a income income basis. operating with fully million was net million on

the quarter. a with in million cash in generation producing first up the first million We of cash, of finished cash equivalent investments from had very the cash quarter good million We quarter $XX.X operations. end $XX.X from XXX.X in

press as displayed original updated we've in to guidance slide. Now, this let's on 'XX detailed our our raised as targets, financial and release Cellebrite's highlighted, is Slide move Yossi XX. and

increased we in offset our by have In $X range XXXX. doing second the half muted year, aerodynamic We million. the this subscription midpoint revenue raised services by clearing 'XX revenue. more of strong updated outlook for revenue our revenue professional We growth and partially so, anticipate of

generate given XX% in true trend full the our two this of majority hold with to revenue of the and revenue quarters. next XX% expect any second we of in we anticipated Historically, half year the over to XXXX year,

We our range year. for ARR have also target increased the

to level QX a view to in of from at Our and dollars QX. QX current relatively absolute QX our from year-end in expansion anticipated ARR consistent reflects

the and been that standout trend we regions to and expect continue. Geographically, EMEA have performers, Americas to

year. we to with from half our Pathfinder and be will second Guardian from As collect solutions expect that we contributions by which of we anticipate and largely expansion growing look fueled will growth ahead, the December ARR reduced this existing in continue our come within both customers,

standpoint, for From raised EBITDA a have we a and adjusted range profitability margins. adjusted EBITDA

continue help build scale plan further to Even important relationship funding strong will investment that as and organization. we customers us innovate, our

and M&A in our financial business carefully us us potential to This We our expect with flexibility fiscal from strong can foundation opportunities fortified that the reinvest alliances and innovation of operations coming over half move second sufficient current around help the accelerate provide our into evaluate a solid partnership with such cash we be farther inflows year with that portfolio. as product will quarters.

is company are hitting becoming approach public we later Cellebrite stride. this the a of closing, month, In second our anniversary a

guidance. results second have strong in attractive for Our QX prospects to and growth us our profitable enabled the year 'XX half of increase this

We opportunities see a our making are strategic and excited momentum, about safety. in our sustain difference real public we our leadership and to continue direction fortify

ready concludes and Operator, now we're Q&A. that prepared remarks for our

Van [Operator Jeff go Instructions] Our first Hallum. question Rhee with from ahead. will Craig Please come

for questions me. A number of

respect more about you the to wonder to you still First, maybe good Pathfinder, a motion? called how with Guardian, spent feel the just just pretty out out that on the process, and be minute you What improved? there. start I just momentum some needs buyer, talking what figured motion you if sales about appropriate

take Maybe for it I start. will a

all, solution basically and investigative First evidence case units is would units, modernize I and basically the digital help Guardian contribute to functionality, flow an to and of management. scalability to important which is management around say forensic

are we Guardian in at a Guardian year dozens customers or and Now are several phase. of XXXX -- moment. the practically starting And Guardian the stage, at was this was in much XXXX. hundreds launched last launched of pretty users There

this here unit, a Evidence cycle the a but quarters adoption around would are, if efforts very a to not sales appeals little position, Management, it to I Guardian install the we stage platform take When to And bit there is say, say for more I for that for at important with our into obviously, units. steps, an digital important the forensic say, And driving the definitely would the education, longer. of need coming comes customer and plan solution could to, need, our I investigative success. We is actually which to Pathfinder, over pleased base. this continue

is we And last of engine deals Cellebrite closed the As believe XX the forensic have by second side side Pathfinder growth dozens of the with units. I we this digital that said, over and to up-sell we with stand to the right where are way we cross-sell now. just much this And and satisfied now. do We need months offering. we right doing pretty continue are

And an then open-ended just maybe if question pipeline. you, on

con? small variance, you product Just in maybe large, the what variance, look out pipeline? What thoughts As a geo seeing pipe pro at and mid bit? what's trends, maybe competitive trends on you're landscape, in any expand playing depth the

say Company that picture the in of sales we local well say also a ahead. I bring lumpiness I If and federal normal QX very to United as on especially healthy of in can Americas both in deals we pipeline, deals were in is the in One I would in of healthy good and the large healthy the and at see operation, States only very basically quicker, not terms our segments. the respect. able a in sales that we have and or are and that America our of we EMEA, our it's tick tendency look satisfied government, Pipeline very and elements cross manage state pipeline look

geographies comes to which takes, but longer good between Pathfinder take in months XX here the to to Guardian, Collect and cycle, sales one ticking I cycle, a the to and we're weeks can six only months, box it few when short good it a And sales the the successfully. it but at picture. if all pipeline, all all Review, when Also and quarter, remains segments. Again, much and look same, the pretty in in comes

of I that just it would M&A little Can the on what three the within the the if in sense next pipeline, suite. incremental lot make there's give should we over expect a front, a depth last, capabilities one and of sense And know breadth six months? urgency, the on could sneak I to you

regarding of first are we the comes a are about current think in for deal and of alternatives the I we're currently are all, looking and we it M&A, part for options. and I are to clear So, say of packings, terms we opportunities of and with some which for M&A, radar have we very clear organically, of say that. When suitable looking looking will needs, strategy our mix portfolio fit are There which it plan have our to us on that's would fulfillment I plan. technological, at can be the enabling both has in that on the better small our existing to we

by us which also in up side scale opportunities, adjacent are we for side, for areas. And will options looking large some also

the Specifically we collection moment. the at are and options, where which going are can sector, in give share also the that looking several private now eDiscovery are right placed beyond we at I us opportunities, will which

Thank take Shelton next you. Deutsche ahead. our Jamie Bank. We'll Please with question go from

couple provide fiscal a two you now UFED for connected me. premium one or Thanks. of what and as questions of to housekeeping us XQ Can percent Just the is based follow-ups. I've a then got

we within an been meetings are offering passed premium the close at mid-teens. ongoing continuous Last and quarter the and our low-teens, quarter We've our effort it's increased this We penetration. to expanding base. and existing

sequentially. any color there down color saw should trend a there any few attention you expect we I that And points net on I'm guess how but dollar percentage additional here? Is and can probably tick here, the from to provide nitpicking I

midterm we retention trend, will the in actually converge which with revenue. the dollar our said net is the following ARR Well, rate

if case expect so is next slightly than and dollar we past on customers. to our get closer retention the also revenue more expectation XX%, we below, Our ARR

guess, about can, for interested was within models you get language one application you you, see And talking mean, I peers large your cybersecurity public if set. your many within then of AI view security product centric their generative portfolio? your of application potential maybe last the are of, I to I and if

artificial to to question The intelligence? was AI related

AI generative use your language the Specifically, models on large and of dataset.

in AI Analyzer it enhancing is of So, automate and tasks to because as in I the look, investigations, both solutions, to basically our at look and way it, in in make said, customers investigators we and view more continue time view Pathfinder our important in consuming Physical invest the efficient. capabilities it least of and we at first all, helps for

will increasingly play role So, over we important years. coming the digital believe that in investigations AI

are And Pathfinder Analyzers part of Physical in as one in and each investing Collect of product, areas. Review we and the our several

focused which helpful. models primarily our models, been we own with, has on will hope can based investment own explore open I we say, on and our to would source machine implement far continue to is AI our developing So capabilities. I it learning

Please question from you. take Bank of go America. Liani Tal next Thank with We'll our ahead.

you Two thank Tomer from questions guys, is for the Tal. me. on Hey This question. Zilberman for

first in The during mentioned remarks. just something question, close your on prepared you wanted to

and more you mentioned expansion year of said Then through Pathfinder see I expecting ARR that than that was XX% the to or significant this was that you by ARR to you're supported So think seeing growth within expansion Review. that. grow & customer also Collect you're

question what your you're And be but to collect not expect my review, ARR the the growth? on is impact product what and of different list analytics to So revenue and lines? be within breakout additionally, expecting also management you

Review. for and as the for on Review, perspective, offering. Pathfinder we and But ARR smarter each and just and the a We base provide majority and do from than the Collect product currently Guardian from expect it will is and the Collect revenue information to detailed growth. more growth substantially a Collect the growth contribute of come both of really the of base percentage still our every on guidance. on provide dollar than Review And both We general

you regional saw in actually down I slow on think America some growth you follow-up and accelerate but saw a in And EMEA, as trends, APAC.

trend, the three regions? seeing you're across color any So three

upgrading the growth comes the continue say And we to first specific has say a that new leadership that pretty also regional surface the and much appointment believe that continue when informed of leader plan we favorable and to to basically we starting Japan, the would and Australia, there, see recently I New region we it about can tailwinds significant we regional to of Singapore. only over are in I scratch believe sales over So all, APAC budget Zealand, potential also sub-regions there. that area. we a

Now results ARR in grew favorably QX in and solidly our trended versus a line while indeed APAC XX% was just X% QX grew generally and in plan. revenue with

we So, much I that are would pleased we say with the position, are while, confident positive make the the markets and us some it'll with pipeline market of progress and to look larger the it'll take pleased we relevant are the in year. that we better some time basically as with changes,

know And your the confidence along early sneak commentary customer on versus if question, just potential And last any in conversations is initial with normal I give appreciate growth UFED I can selling you the customer target but one premium? Ultra. here? on that days, actually what it's UFED

be only which support and which the the and will obviously availability Current Ultra UFED we Ultra of our shared announced plan answer system, little a to UFED in deliver introduce plan workflow, too of So, are simplified because the the June obviously, and adding use, timing with workflow, sales we early marketing -- file the XXXX. our specific to here bit of customers. And plans are full before the part was will previously general short Ultra, the ease that end is begin we we is great UFED premium. activities part

existing with I accordingly, a and because, the with be We future relevant, the fly, believe it's early too on say not significant the can opportunity be in value over functionality obviously for market. there the high and customers, not will priced that greater and word, UFED it's substantially expectations but there they still but that owe a it'll The represents XX,XXX. very out upgrade forget are of let's thousands Ultra last UFED

and amazing So mode amazing that the customers. for business of an of improvement operation an opportunity

We Please our Louie go take question from next William DiPalma ahead. Instructions] [Operator Blair. will with

suite, increase Premium how add much to average, When customers by? does Pathfinder their on ARR

they of the can to few of of even thousands the will size that with it up the Well, ramp and the of size It and Pathfinder dollars to customer. choose and XX more. varies hundreds start thousands

it's question, has Grayshift for Magnet implemented And following increases price large the merger. price were in there you we next this are the market the like and seems in that increase were increases positively under sizes. Have big catalyst benefited My and a the impression deal seen that Cellebrite? those that

customers they've year requirements been from price until that Yossi we've the encountered color Grayshift a substantial Magnet throughout with by increase by and Well, now. more heard maybe.

that and indeed implemented, first that fairly say do perceived in year. would perceived customers. customers. a I No, stage well of respect by say reviewed not by well Grayshift which was rather chose I this Magnet increase it half modest to and both the during can price the large the We was one, at

that. forget relevant budgets in to are beyond public the not to do adoption Let's and nothing that the customers sector, add living with fixed and they need

provider the have that can competitors unlock still iPhone front? only caught the up XX software you that are on And or

say at would the the that comes latest I it to moment and greatest. when

So, XX-ish. I'm system talking operating about

the today the anything unmatched else have to in best capabilities market. We exists that

Please Needham next ahead. from And we will Company. with Mike take question Cikos go our and

on about up me here that you're or as EBITDA thinking philosophy to about that guidance well. help I'm the talent to margins, growth story and ask you you guess at you're walked ensure making? about strategy call you're as adding when well today I receiving or Because to as I the of seeing the at guess, trends when here. the we're when question. off appropriately just growth hiring, getting those we're a a you can support the understand confidence wanted trade higher that thinking But more And us the, durable appreciate obviously in for and Thanks move gives little I Cellebrite, it's bit the hiring what the I Cellebrite? better going through hiring

successfully terms in based are which of continuous got additional hiring clear around in of maintaining, future path best-of-breed the I reputation, market, that investing of the maintaining our, into be we've challenges in ahead exciting say and on today looking respect. collection, we're If in that and to would our talents of in order

and is Premium cloud. but the would it to Cloudifying now, we right say as service, Evidence comes which also with like offering, to When the do a of what would everything a and I Management, coming to SaaS at area we day, related offer the on of Guardian, end

building are are hiring in help to relevant and we that say cloud team house, will pretty the would We the it the now there much come. talents in seems combine by on-prem bringing over successfully. right that us and and successful to basically I the successfully future

successful at say very would our doing we, if we we OpEx to So it. that plans, it and also capable do we I are and are they're look

to the value in mix success, and comes added of the such product to especially go-to-market up-sell implementation in sellers clearly we and good customer comes cross-sell it the and need and sellers, between and when organization, it and to as When invest Guardian. solutions solution Pathfinder

also clear answered makes have respect busy that question, what what I I and we in And need confident about we And what much in moment that's doing respect. about view bring us that. pretty I successful of, know we are in if to need very we but in to we at that the a future recruit, doing and we're variety what pretty would terms say the of challenges about, are on we're board. don't

that's great. No,

feed into to to starting actually You're wanted take I where this.

ramping context average hiring trying new to pieces is demonstrating for the sales recently about example, are right? been Salesforce that, a that So, the more them in ramp? the Just the under the or help execution the this you for Can in to of the that at I put it judge amount of has environment? an there acceleration as go-to-market us because obviously guess, some of to reps potential time takes hood similar force, of think I'm the and rate tenure specific I'm the in the

all, of to the First our ticks, sales works. reemphasize our want machine I that sales fact

quicker the and who the that fluctuation. to you you we people as capable said, a And which sure in selling could that. we're will solutions. left make that we talked respect, faster year results. we we see the mentioned HX, I complex transactional I with, rather than and deal and with deal in think about If remember need QX onboarding, people, to even value-added and combination business But that last bring between in that people lumpiness actually good have than We and things

it's good Well, related the people to sales right what good quick onboarding, prime pretty we on more well quarters. well two of and customers, here, people That's a the is and Review the changed. nothing product call great. of putting a much When eye onboarding are Collect it the for bring positioned machine. we now, to what we we comes on which selling, cetera. area When et and the But equipped we have it sellers, time. all in with solution are sale, goes

We happen. for are challenges waiting not to

in to say, so operating advance. are We

Carmil remarks. would This over call. today's I to Yossi to Please Cellebrite, concludes now like ahead. CEO, for the floor additional turn closing go

Thank you.

So all first thank of you joining. all, for

pretty are to increase As guidance the much I do, said pitch, good at very journey and are strategy. a we execute grow the we ability in momentum. our our and to of work of we about but continue my the Lots hard confident to end

trust have thank for I the thank joining. day. great for a and you you I

concludes you. Please disconnect Thank day. at wonderful have conference second time and today's results quarter This financial Cellebrite a this XXXX your line call.