Cellebrite DI (CLBT) 14 Nov 232023 Q3 Earnings call transcript

Welcome to the Cellebrite Third Quarter 2023 Financial Results Conference Call. [Operator Instruction.]I would now like to turn the call over to your first speaker today, Mr. Andrew Kramer. Mr. Kramer, the floor is yours.

Todd. much, very you Thank Welcome to me results call.Joining XXXX third from just quarter today D.C. financial outside conference Cellebrite's of Washington, Carmil, Dana and Cellebrite CFO. Yossi Gerner, are Cellebrite CEO that prepared There's accompanies slide presentation remarks. a our slides in viewer our Please advance the the to webcast follow commentary.

the 'XX copy discussion slide as well financial the after quarter be at Slide recorded our available being and relations historical in including done we're of referring on each a metrics the They to on forward-looking statements XXXX, constitute today's cause be addition, could provides website occur. quarter and by discussed those and XXXX the statements. this events company's made the replay on the of of uncertainties with the statements of our statements SEC from XXXX out or remarks. comparisons non-GAAP call call and on today's Factors to to a cause future the unless elsewhere financial implied does heading, under financial statements reconciliations. the forward unless these and only call made risks The shortly This otherwise matters third reflect the on the to will Form historical facts the the that call.Let's please forward-looking release will could company All of quarter information start circumstances.Slide our any statements quarter conference not XXXX not materially during financial otherwise, all with for of also and #X, actual stated forecasts.Some tables our or outlook GAAP, statements that differ number in investor for today's of financial basis noted.In note the investors.cellebrite.com.Also forward-looking subject We are historical will the third are XXXX. our expressed The and update call. provided results website metrics are third filed is XX, and presentation that supplemental April as #X results in undertake forward-looking press slide on and Risk this other are factors and available looking and/or quarterly recording report a on XX-F statements, non-GAAP to not call annual from agenda to are

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and Andy you, joining all for Thank us today. thank you

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acquiring pack to new account this and plan are USD efficiency forward, solution objectives.The automation review flexibility an to with reducing enhance customers. our recently that offerings end, to introduction with growth in used media investigators seeing our addition are cloud we including Search end-to-end online units ARR by our value, to by these XXXX late analytics, and the gained vast the we is grew digital the within optimize licensed To during Premium automate devices.For data justice. We to our capabilities, our Pathfinder securely their ARR to Search, X collection XX% by potential social add increased faster of AI-powered further surfacing investigators X.X a customers available evidence.Now Smart help million.Now intelligence help in experience this the digital wide of and resides deal a to our department, solution.Smart investigative about expedite we result, with of a it open provide our which review relevant evolve move user account USD we the discovering and as increase relationship advance to volume of over backlog, Pathfinder source traction accelerate a public excited expanded example, major collect of cases we've by U.S. greater and to we we to capabilities clues how the AI Smart our As leads valuable is accelerate that involving our offering the of third the deployment set investigative deliver which range platforms.In service connections our police expanded as SaaS-based and leverage ongoing data, on through priority within in achieve technology Search enforcement factor quarter, of state and to XXX,XXX. case the digital law the second by more for

our area of integrated to seeing in that flexibility customers. also data enterprises investigations help leveraging eDiscovery.Now the focused portfolio are our is to we units, hybrid forensic work private solutions addition streamline capabilities with AI to enhance opportunity collection build noted by the currently in accelerate service the and we optimize involving AI digital on environment earlier, where see and resonating Pathfinder we sector, and data investigations for with offering, used In strongly in to are the deployment digital corporate to for support as continue the evidence.We providers business analysis visualization and are an to

leading efficiencies involving we quarter, our eDiscovery content-based continue the helping employees leading to as establish power During limited by USD IT office.We also the for offering with fourth Inspector third approximately deals, XXX,XXX.The internal outside Mobile XX% increasing effectively offering, is cost mobile Endpoint nationwide the the expanded our a to relationship close to is and collection this company data their ARR drive for solution to a of account points pain resources. our help investigation strategic operational harness new which priority at cloud without this address of on-premise securely to customers taxing our and

won solution.For cloud-based to launched continued traditional moment have good potential powerful of the have introduce a and to as SaaS-based progress for forward to make our platform ago, within and taken mentioned months, in offerings Smart end-to-end past this example, units. to we alternatives new XX software Over case number grow.In evidence major our on-prem Search steps QX, management double-digit SaaS management. We promising we SaaS-based of as investigative continues offering, well as Guardian, deals with Guardian we I users solution for the in terms see

customers we over the early part sector that largest moved important Search We in to the one Smart portfolio, live us. are later next with X, Smart excited our like of XXXX behind to quarters deal forward, to FedRAMP XXX,XXX. We went such enablement of which outlook. including And with of our the covers cloud full final accelerate would public to move in increased I as the police certification department adopters ARR quarter is Search States.These into quarter strong achieving United the X plan more than Slide year.So by that among XX% USD third going as of a our

units to have on investigative Our to more units to all workflow.Based investigative results near-term continue updated the expectations. modernize we their we expand and forensic regions see, allocate resources date digital and in our both as pipeline opportunities XXXX our

will range. As few near-term minutes, in the we of ARR our the our have our Dana raised midpoint increased also XXXX strength we XXXX have in revenue sales detail pipeline, outlook.Given

growth, our above conclusion, prior advancing expectations as process EBITDA and reflect our to solid for to range are our also gross the hard spending.Now successful we target planning expansion adjusted we We prudent XXXX a meaningful increased also work bring primarily combination of XXXX revenue margin to XXXX.

in see we investing today business in an Marcus Juniper opportunities will Brocade meaningful which the long-term.And our accordingly, do Digital created in we business growth will States drive proven help And is healthy be of build to companies level, at as our including our as United brings continue momentum accelerate with veteran markets.We take Cellebrite. We across XXXX, contributions in newly of his impressive advancing unique turn over and continued of to also be to federal our to note, like we to money more on time call segments successful excellence sales Jewell, next blend the and our a part Communications the customer an go-to-market but announced others. from the final Networks, top CRO growth it solutions.We forward towards and budgets that our us to a Intelligence Global look each line final I before of approach to that important, expect directed Dana. Cellebrite and a are We role technology will join operational benefit the record, exciting track sales CRO.Marcus fast-growing believe

addressing to sharper. And like United safety fortunate and Europe, our remains my extent our to to level. to lot the the moral would Israel. offices your our in the Israel impacted our a collaboration times, investment with we Africa and challenging us, are friends never in Cellebrite.We East, teams I an a of me in situation that ongoing means to out in taken our reached striving on these you about a of has business-as-usual States, partners, not to the so meaningfully business-as-usual at well-being DNA a and Israel our greatest while mentality, end, with the customers high open remain although maintain Middle Pacific.Our those Asia the very Nevertheless, express have lot concern possible.To needs in that employees thank in focus been our business So our ongoing far. who conflict to and of it industry customers, has the community steps the the colleagues means in prioritize are It

of to that hard in resiliency, the review for saving and accelerating with financial justice as protecting of world for preserving around start a to commitment and I'll around Dana the their Cellebrite's well work, of grateful one said, our I'm ask world.And privacy another my mission support Thank you. colleagues Cellebrite their So lives, to the results. courage,

you, The X. review on Yossi. Thank financial begins Slide

Third XX%. $XX.X quarter of million grew revenue

from by partially was decrease in other professional decline by XX% revenue.The line non-recurring XX% Our outsourcing.In the revenue, appreciate Asia in largest QX total single revenue, in non-recurring XX% primarily a lower our solution geographic offset Americas usage XX% a top up The quarterly decreased essentially in reflected terms other for subscription remain at as EMEA services transition which and our revenue by geography fueled Services Cellebrite year. mix, revenue better revenue future at professional a of and subscription, X of its of total believe growth small over our our has fee. revenue the completed decline increase reduce at followed and our revenue growth with services perpetual revenue XX%. the adopt Premium our customers year coming in from helps coming details decrease XX% subscription ago.Slide revenue reflects to their lower Advanced ARR investors XX growth, XX% license XX% software and we prospects Pacific

are disciplined uplift million XX% XX. above 'XX non-GAAP software combination quarters.Slide headcount and public type XX.X%, quarter.We newly EBITDA terms $XXX primarily tied timing due the a million of reported operating year, operating The compensation, offering on momentum points profitability performance gross services.In The of deeper ago, the in declined year phasing metric. to awarded the our of QX.Diving the trends XX a XX.X% the XX% quarter offering.In of launched of and Premium within that our X million, of strategic more little growth prior excellent our the produced expenses, amortization and driven of by on quarter and of higher Israeli the half second we the enjoy decline majority hiring gross end third augment lesser margins the and we QX. the more our consistent of of of of into from forensics growth revenue, to historical higher-margin subscription grew track our $XX.X in the to expansion units to XXX employees, up by this operating expenses.We our foreign decrease expanding quarter adoption or continues by quarter ended due costs, be margin Slide and second at as of to We customers, assets the of in very expenses, first changes to the share a gross X% margins will of ongoing this limited favorable third the projects people.Turning strong lower basis is extent sequential digital year-on-year Smart the from with growth to primarily marketing sector Search start from exchange up rates customers, in of are $X third business terms third than strong expenses the historical seasonal of the our expenses of and our ARR area coming that customer to due contribution million optimistic adjusted Our over fueled end offering timing our year our details activity, of the XXX with share-based but intangible end and from second revenue non-GAAP our Pathfinder from XXX at quarter $XX.X from were shake-up.In the certain change certain basis.This believe year, performance to spending investigative in benefits trends primarily largely exclude slightly programs which a a levels. units our for slightly total the growth the with existing down X,XXX professional onetime in margin margin operating in in September acquisition-related to against continue the in our a half

$XX.X was a $XXX.X equivalents move or cash by income quarter net third cash reflects and Slide generation million another in XX. with basis.We quarter the from the cash Our fully quarter. operating non-GAAP The finished income end QX the with good million diluted in on million $XX.X to non-GAAP of million of $XX.X with $X.XX million operations.Let's increase provided up very primarily of investments, $XX.X second cash,

as press updated we've has trajectory Cellebrite's our prior the updated in XXXX increased of this and is revenue, of on full prior which the of turn million prior in $XX in our QX range revenue by raises strong million, million, Yossi modestly and XXXX subscription by current end displayed midpoint revenue range.This guidance our the detailed $X to a $XX highlighted, low targets. slide.In anchored guidance $XXX year to of As million implies terms our release a revenue range our financial growth.

We target have our in for close our based primarily those for opportunities, on case evidence -- investigative involving analytics with investigative -- a healthy of strategic raised pipeline in 'XX including our ARR sorry ongoing and management. XXXX our and ongoing our the progress unit anticipate strategic units.We leadership and a forensics on strong with our expanding increasing business digital

our fairly year However, that $XX objectives.Accordingly, expected strong recognition end the support high hiring XX% involved a later we range million increase EBITDA and quarter initial revenue, fourth XXXX have range higher our result XX% and the to another financial to operating in incentive expect the XXXX of range. Cellebrite achieve and improve Yossi revenue our our quarter, around outlined costs strategy, We required Cellebrite's anticipate our that the have sequentially profitability, expediting primarily to adjusted and our target the to adjusted execute margins of an expectations.While we revenue important activities, that compensation content full to services fund we increasing a quarter to the in to strong to on and delivered of the 'XX a advance strong marketing priorities.In anticipate third focused planning since advancing many professional left as year high and steps of quarter QX are growth help EBITDA unchanged.We finish have will raised we above remains QX we accelerate investments our note.While deals gross our rest limited with to business XXXX the in the on ARR prior performance budget, muted the even 'XX our our not remain range earlier, profitability, at are outstanding complete close to year and on strategic we taken will we margins globe finishing 'XX in activities ambitions laurels. still move we our our the forward this revenue summary, are teams as the believe necessary

necessary that our actions and will technology and on concludes focused ready are we Cellebrite's our help mission potential leader.Operator, fulfill now prepared full for a realize as taking Q&A. and We market that are remarks,

Our with from Instruction.] [Operator come first Mike question Cikos Needham. will

And think Mike is conversations Cikos revenue had expected for I bring? Can have of well. first position.Can in us for and to that's it appointment Needham. new as either have good that position on previously accelerate? that or you the expected you to what is tomorrow? this some Thank newly would to respect maybe update him to the Israel you up? the Marcus lead And created looking strategic Cellebrite hear. the of my with What that question you from guys didn't to really are talk he's what Yossi, be chief him help with guess Yossi. about it's officer Marcus' global and stepping in

all, is first highly said you tend much, twice There can And quarters appreciated. Absolutely. beat-and-raise. in nothing a Mike, -- times, in consecutive results We better great of are times, what as in we X good very you thank better see, XXXX. to in is delivering as you peace row, Actually, yourselves than say. actually I making

actually can to clear that accelerate like a in we is timing person would results.And this and grow great as really is company. on belief a say the a our sign that just Marcus bring wish So I for based our

need we possible exactly ability brings the Global have with a as that Marcus exactly to a bring the means that table -- track acceleration who that experienced accelerate, record making among others, So bring okay?And to to CRO. people

And to is that entire help right going it. that's the elements oversee the public all CRO, all and the scale. experience a top us business of right private As table, the Global the will to line Marcus to sector, bring the the experience customer sector,

Got just maybe it. to And if ask, Dana. could I

first is historical question, is have tends ARR we as we historically, get -- I'm were net to ARR looks QX have. updated just of like new information. have to more.And generated guidance this wanted we generated to deals have, or at think generated trying X only think, know versus the years is And I from have, that QX. I I we around X related see, think anything that there. there or here. information net be the the X QX, to and if is arms -- expected of X looking Again, really guidance I to down either not just But years of the we today's the same QX there what don't we it or new because my -- this actually in in ARR XQ timing that's in be And just else QX I

trends So to you if see more that could I I with would wanted seasonal familiar maybe get out. call

seasonality for Mike, or years, quarters. it's -- in is last NRR the it points between Thanks, was the X the once X and the 'XX, QX. principle, question. This almost X even the same. these even part of was of And In X in reduced QX

still our we year-end. which believe on create basing the current opportunity will are based great We for a NRR it this analysis,

marketing, how -- question And sense the cited last of million calendar we us early better OpEx about which you in 'XX, just to events. the there.Can But base nature? about think you more guess, maybe some if And kind the for $XX maybe know about more some expenses are we OpEx think components I when I range. you too help expected there's those there's I that it's are called if to in QX especially And through flows get talking onetime, had a those you. guidance. of I hiring of that any, high think the incentives, turning seem in 'XX of to for onetime out probably want marketing there's QX,I start maybe those had here any be know

Yes.

expect we is the to launched So QX QX. focused Ultra -- do UFED point. on The activities heavily launching of for the in on right is new in sure, you're that the heavily marketing

onetime a expect higher regular having it. the do to some year-end, the great help incentive-based goes on basis. aspect compensation, such expense it than So of ongoing we be with Same a

question next Jonathan William Ho Blair. comes with from Our

wanted conflict. by recent our for also echo impacted support I thoughts and everyone the prayers to and

quarter, Just cost in your where to this you you more order margin opportunity future more realize periods? saw outperformance with help understand increases to for growth do can headcount us to you And to drive regard sustain need savings?

towards very end about really not of as more are our our manner. mentioned, saving, will it's performance controlled the sequentially club we to X,XXX the I because in get we OpEx XXXX. year, headcount growing to into So heading need people the a And for secure it's

we about Ultra And how should well as your uplift ARR? the it. Premium in the the potential XXXX, as solution basic of and benefit Got with think relative in release pricing to to

First customers. a of -- is mobile all, Ultra, is the value going more be to been the because, is which all, this bringing mix to launched of first

in price system. value end-to-end capabilities stated full in the customers. Premium like other we were for which using offer for value. a which opportunity bring and value the that, it and will I'm digital tremendous something because environment. past, file brings to capabilities the emphasizing sell order cloud more about an result, that it's And increase as the in more to forensic is, as an and all-in-one talking And solution basically are unit We

packaging Yes. customer. pricing structure our of that UFED Ultra We a just with is the rebranding to and attractive with It's additional capabilities say benefits the our beyond repackaging, right price the increase.

one last Just one.

little In you that receive that other much Government approve a the how you -- opportunity, you Federal U.S. up terms opportunity agencies approval? when FedRAMP about and in talk maybe opens can become FedRAMP of once bit the certified,

Absolutely.

in all, an one in of opportunity. -- huge amazing sentence, First maybe

strong very already. We the are a on positioned federal space

when related so each to cloud solution, of analytics. We investigative SaaS existing all review, with, the in which offering, and have say, all basically and will -- everything team business both will the all we possibilities build the the investigative basically an a even so review, would Guardian, that collect customers, to analytics huge one on, is and already parts, in FedRAMP collect it product and upgraded structure especially the And With we right within entries. opportunity. portfolio in later to bringing that and our it us bring comes expand I have

Craig-Hallum. question next Our will Jeff come Rhee Van with from

really the And just in sequentially really to here. congrats with impressed and execution outstanding the the light on get of we're attack team Hamas ARR particularly to us quarter,

congrats and might So to evolution a product at see, all close the How point enablement all a cloud? do which cloud or about you product evolution you to suite, and on little the thinking. do How you think the from be just we standpoint? cloud the team.You'll think of the that about maybe very longer-term product

of we repeat. I stated times, think are we several I all, first Look, -- so will

there We on of customers over more about one something stay, the are sensitivities, there. the on our a to several are due customers continuous we which the the times hand, to spoke related in the stronger is which on-prem, moving cloud to evidence to which especially and acceptance is within trend effort investigative our cloud.Nevertheless, on

cloud, cloud investigations be look say, as in the way result, entire infrastructure be level to we our would delivering offered I a in relevant modernized.So the by their would the We cloud and offering not I the are are to, the and is for fully say, will as it's committed ability further a we side-by-side business opportunities, productivity value the to the the say, aiming on I a cloud collect full it's can more their as improve opportunity, our the There a create with customers. to, only efforts. road, efficiencies offering see we scale, to But review bring to collaborate would as but ability really along that and way start on-prem customers to tremendous efficiencies. improving

candidates. Jewell. you've you the through did CRO, in I'm on of then Marcus? And particular lot in for Global Marcus What looked find sure go and looking

but I repeat said think it again. I'll I it,

to basically scale, to the say Pacific Marcus American to between that, so, and upgrade. scale accelerate mix that Asia a the we allow of from and and our road. the me a -- very to Ability I going are of of we a here along we killer cloud said application in terms and and of several Europe we part been sales think environment. ability I person acceleration, double business and down DNA, move brings States, in okay? a done calls, of efforts in mix what international strong the in the On and element -- plus are experience First in what efforts ability the good on-prem there, top to that in that strong are in United scale of reason and to the will very But our our need table grow the is all,

seen we important up thing in a selected that that So sums and we've as the searched candidate. Marcus most

M&A. You've time talked about strategic over

curious Pricing seeing specifically and several you're probabilities observed what here next -- the in with what last Magnet market Just quarters?And seeing land the and the last then you've to of the respect in year? GrayShift, something one over question.

say, if see organic of all So customer and our all, to or which to our would said do have part possibilities, area. of to are time, when sheet look, might -- acquisition. expansion, make, more we comes of our them in inorganic you and is we you the that the search element look in base order cash, M&A at is say, in regarding that it I we way, And at and moves first are quicker time elements we if look strategy. time M&A, it's firepower part several you would growth, I via that -- achieving smart enough can regarding market part accelerate balance do search, actively times, around, we the continue our but which to By

our they M&A.And So, context, to and we year, pay to from ready that. our market especially also will that price continue increases have from for so this our side. I'm regarding our we seen in say to and and customers to them are far our pricing, and that regarding market competitors In see glad both appreciate and value, competitors

Our America. with next Tal Liani comes Bank of from question

was know margins guidance I 'XX I XX.X%. don't but The XX.X%, for the The so is question is XQ provide strong. about guidance, that's year EBITDA fourth and -- margins. quarter because average you a have

at look if comp And for work a margin for next up that headwind and year.What tell rate. about So question of us is and can If looking XXX -- year? takes strong you basis points puts of you it ongoing you of means tough the or for it you not can do us what about guidance, still for but because think specific you XX.X% year XQ, for give can the you the there -- I'm is about the puts takes tell kind the throughout the EBITDA does can year? start from next you a

also at very, performance -- at providing is think the EBITDA you look if very I a strong nice very QX, QX. following a numbers,

stepping As we -- plans are and as we working see our XXXX, I mentioned, do we there. into on still

we of do seasonality also call modest do efficient X. provided OpEx will improvement half disclaimer what So public revenue And margins went said the spending the improvement our and growth -- continuous here, impacts half seasonality margins.I I'm our that the between will that we EBITDA of of very putting a XX% that margins. overall take when EBITDA the long-term revenue EBITDA targets a EBITDA during in we I consideration and in emphasize large into in XX% have our into to need also we X provide through the

come with Our from Deutsche Bank. next Jamie will Shelton question

and it's to execution hear Brilliant all you're glad okay. doing

what is a a Can you Premium the question Just to us couple to of follow-ups. And with. me from start of then enterprise? now base quick connected I've usage provide percent got

in very say solutions been we've picking the -- is here. this would a of that of penetration, that Premium all from -- largely. There stage the say in Premium say would first is at all, related I And to permanent I mid-teens. is that Premium progress QX, up would the So the consistent I -- currently, suites

mix to value high-teens. the our to is part DSU, strengths to there what QX the increase.And to comes we of the What when the forget time is activities strengths end-to-end influence forensic in we offering the a which all our offering we connected back our within a collection a here critical capabilities Now match do units. proposition.Premium with. capabilities. basically on digital competition that are we end little are it cannot that Guardian very and with permanent And Goes basically, of emphasizing end-to-end go not ability Premium, review regarding in bringing within the of a to bit let's

good anticipate in are we faith. a So one that we

us. far from Second, still a of is which Hope great away fulfilling question. ahead answered your potential, I've

And few Yes, And years? portfolio? And think could go where of a very similar over got analyze from What the investigate do your question. next percent question. I've clear. final and you just business one this

see structure offering. not So business XX%. it of XX% Most collect analytics. is and -- with the review is around around the actually We potential this is investigative is great our business, and business of which

So...

to part units of the strategy. unit as growth emphasize would And investigative yes, digital the of I investigative would element growth forensic add much my the at investigative in key our growth very management, from pretty as road, a I and them. stated, nothing with key stage, good I And evidence I company meaningful Pathfinder, both in to units well. I positioning Yes. part both we expect I think, and these in along very was investigative to But improving years should nicely a that unit in is and is this activity units.We've growing unit forensic for efficiency like solution both clear, Guardian very investigative the is forensic in say say, come.I and penetrating the are like also Dana engine a got, all, Pathfinder and say, would pipeline to of the strategic what that of the regarding side-by-side digital terms previous a of we digital speech, element in did very solutions long-term components. this unit first of said would a element regarding In of and Guardian. regarding of meaningful the are case the

just one times, is kind has last the a for from And -- in much But natural increases? obviously. ASP what mean, have touched in as price the how do of internally? highlighted I then of of Premium products, the you couple drivers to And adopt methodology deck, on leverage it's price but me. growth outside uplifts been you and core

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from next Cowen. question with comes TD Hugh Our Cunningham

of just process probably think the would to performing customers the of ease lot thought at our about displacing. to my friends. Guardian the offering customers.Can displacing on you side the those will some to and and place of of through Pathfinder to We colleagues what about first Guardian, trying thoughts and questions.One, have answered in and all you penetration of be the functions Pathfinder? you My your in couple talk there's our of of -- sort and that A I'm displace the for Guardian a maybe Pathfinder and nothing difficulty be of both or initial solutions just your side already prayers families go on performing your with and -- what functions question what Yossi

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Federal -- does and FedRAMP with local maybe or the forward that side, a Government? it are diligence to do who does using shutdown maybe On will sort federal of private any shortcut customers FedRAMP help in federal you of from side, U.S. you also? you moving them the on the validation, state then due even with the related you addition or and And that, to potential as expect help impact

First of from absolutely, that. first the all, yes, benefit to question,

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impact on assessing, are We our see no we for but XXXX, results. QX

targets about that in there?And Dana policy Mobile your Endpoint I you related was FX And hedging Can sector target talk up as know, on part the sector. Mobile the differences I announcement. to sector? versus then think talk talk approach policy? it's great hedging FX, I could the for Now to of Can the us about improvement Now, private you remind then public to the about mentioned, wrap see private differences Endpoint just you you know about the OpEx your moves. you Can there? your

sector, I'll the -- sorry. Now, I'll public take take the the and Mobile private

a we a very way, it we general, business.In in -- by sector -- SaaS basically and portfolio, it's see offering, when of progress steps that press And QX. will I small indeed, -- targeted step step public the we for would done base.Dana, a have which on paying we endpoint customers part part midsized focused come first which sector.It's to market. as lots for, have For QX. it's will is a Now our accounts say, innovative as said of from to... as before the company, say, is a first complete you good a in of and we into Mobile Now comes release, potential product in SaaS, be more, the I And which sector our large the as The is bringing private the the in background our private especially an the Mobile would brought of the as -- would the to that strong that like customer our one

for sure. Yes,

So the is protect our policy expense paid is aimed in Israeli in hedging payroll which to mainly shekel, Israel. mostly

updating forth, covered X We currencies we we'll rolling have usually are coming policy. on a executing. Then hedging so monthly a that and and XX% to the and quarter XXX%. go basis quarter, based quarter on to on are XX% next the so But is the we

with Douglas Bruehl question from comes next Our JPMorgan.

guys years? employees. fiscal to Federal. compared end QX the extend in thoughts see a support year? continue all We'd my budget of prior did bit and flush federal could any And then the also with we and how Cellebrite like you the with you to coinciding Maybe Did trends U.S. to spending

or pretty But the XXXX in budget. general, public healthy previous environment. previous 'XX look in good obviously, related There also in budgets. are as see say, to any QX would during federal and are some we In I QX say, I and about budget, cap year the a discussions, versus limiting which we saw challenge Fed comparison -- related regarding QX year. 'XX. if is to the compare would We regarding the much in our, this see to comparison growth They previous I at in performance, to, we didn't whatsoever

And then more. one maybe

you're Given SaaS commentary offering quarter, lately? the sector new or enterprises traction that any seeing trends released on that the private in you that for

The eDiscovery, our private all, and budgets. and response, our I there the I trends more incident in so important sector say, us us, comes on more radar. said, and -- the of of, when becoming one, are First is it for to on as say, would sector to more areas is private

accordingly. when intend by Second, platform we midsized an need are operate trend, as and large XXXX started in the a the for trends, organization. already And especially ongoing Those clear and need it to collection, look to there is the a ahead, would for XXXX. way for there unified remote we say, towards is major which comes XXXX, XXXX, I

would the Yossi CEO, the for I This portion today's like now to closing does Q&A conclude floor any to additional call. turn over of remarks. Carmil, Cellebrite or

all, our end for to to the during our joining. again, support.And so above of what times, Cellebrite macroeconomic by, give that especially for thank fact experiencing we the targets. succeed you all would plus we are to Middle such like and East, continue emphasizing beat thank in conditions, strategic the the and big First conflict employees And with thank deliver plans beyond you and and you the for you for I again, like I the a thank interest, would

team. thank today. And thank big well for joining done you big us from a my and So a you

quarter day. your have conference a line and conclude disconnect does XXXX Please third This today's time, at wonderful financial results call. this Cellebrite