Cellebrite DI (CLBT) AI Stock Analysis

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Cellebrite DI

(NASDAQ:CLBT)

68Neutral

Cellebrite DI's overall score reflects strong revenue growth and operational improvements, offset by challenges in profitability and valuation concerns due to negative net income. The positive earnings call and technical indicators suggest potential upside, while stable cash flow generation supports future operational stability. The absence of dividends and negative P/E ratio are notable valuation concerns.

Positive Factors

AI and product competitiveness

AI and generative AI features help improve the competitiveness of Cellebrite's products.

Financial performance

The company offers a compelling investment opportunity as a market leader, growing ARR over 20%, with a strong cash position and no debt.

Market opportunities

Partnership with Relativity helps drive potential enterprise market opportunities.

Negative Factors

Leadership stability

The company is actively searching for its next permanent CEO, which adds uncertainty to leadership stability.

Political impact

Modest Political Headwinds – Cellebrite gave a healthy guide for Q1'25, but it would have been higher had the business not been impacted by regime change in certain countries.

Stock performance

Shares are likely down on profit-taking, some U.S. federal deals getting pushed to the right, and the 2025 margin guidance that implies modest contraction.

Cellebrite DI (CLBT) vs. S&P 500 (SPY)

Market Cap

$4.75B

Dividend YieldN/A

Average Volume (3M)943.12K

Price to Earnings (P/E)―

Beta (1Y)1.23

Revenue Growth23.41%

EPS Growth-222.82%

CountryUS

Employees1,167

SectorTechnology

Sector Strength65

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.08

Shares Outstanding239,470,060

10 Day Avg. Volume895,285

30 Day Avg. Volume943,115

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$26.60

Price Target Upside34.01% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

Cellebrite DI Business Overview & Revenue Model

Company DescriptionCellebrite DI Ltd. develops solutions for legally sanctioned investigations. Its DI platform allows users to collect, review, analyze, and manage digital data across the investigative lifecycle with respect to legally sanctioned investigations and solutions are used in a various case, including child exploitation, homicide, anti-terror, border control, sexual crimes, human trafficking, corporate security, intellectual property theft, and civil litigation. The company's Universal Forensic Extraction Device solution addresses problems in accessing digital information, including complicated device locks, encryption barriers, deleted and unknown content, and other obstacles that can prevent critical evidence from coming to light. It also offers Seeker solution that provides the ability to analyze video footage; OSINT Analyze, a real-time deep dive solution used to analyze open-source information, such as the surface web, deep web, and the dark web; and Crypto Tracer, which analyzes blockchain transactions together with related data from an extensive list of sources to identify and categorize wallets, and transactions. The company serves federal and state and local agencies, as well as enterprise companies and service providers. It has operations in the United States, Germany, Singapore, Australia, Brazil, United Kingdom, France, Canada, Japan, and India. The company was incorporated in 1999 and is based in Petah Tikva, Israel. Cellebrite Mobile Synchronization Ltd. operates as a subsidiary of Sun Corporation.

How the Company Makes MoneyCellebrite makes money through the sale of its proprietary digital intelligence software and hardware solutions. The company's revenue model is primarily based on licensing fees for its software products, which include data extraction tools and analytics platforms, as well as sales of hardware solutions designed for digital data collection. Additionally, Cellebrite offers subscription-based services for ongoing support, updates, and training, providing a steady stream of recurring revenue. Key revenue streams include contracts with law enforcement agencies, government entities, and private enterprises that require sophisticated digital forensics capabilities. Significant partnerships with technology firms and law enforcement organizations also contribute to its earnings by expanding its product reach and enhancing its service offerings.

Cellebrite DI Financial Statement Overview

Summary

Cellebrite DI demonstrates strong revenue growth and operational improvements. However, it faces challenges with profitability due to negative net income and historical negative equity. Despite these challenges, the company has robust cash flow generation, indicating operational stability.

Income Statement

Positive

Cellebrite DI has shown consistent revenue growth with a significant increase from 2023 to 2024. The gross profit margin is strong, though the net profit margin is negative due to high expenses leading to net losses. The EBIT margin shows improvement, indicating operational efficiency in recent years. However, the EBITDA margin is negative, reflecting substantial non-operating expenses or adjustments.

Balance Sheet

Neutral

The company's debt-to-equity ratio is low, suggesting minimal reliance on debt financing. However, the negative stockholders' equity in 2021 could indicate financial instability during that period. The return on equity is not calculable due to negative equity in some years, and the equity ratio shows fluctuations, reflecting changes in the company's asset base and equity.

Cash Flow

Positive

Cellebrite DI exhibits strong cash flow generation with positive operating and free cash flows, which have grown over time. The free cash flow to net income ratio is not favorable due to the net losses. However, the operating cash flow to net income ratio suggests that the company is generating sufficient cash from operations despite the net losses, indicating good cash flow management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
401.20M	325.11M	270.65M	246.25M	194.91M
	Gross Profit
338.61M	271.88M	219.91M	203.69M	157.03M
	EBIT
56.91M	33.24M	1.04M	13.82M	9.22M
	EBITDA
-265.38M	-64.80M	10.24M	89.88M	16.95M
	Net Income Common Stockholders
-283.01M	-81.10M	120.81M	71.40M	5.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
447.22M	302.92M	183.62M	181.56M	237.64M
	Total Assets
690.57M	532.88M	403.29M	339.78M	364.39M
	Total Debt
10.97M	14.13M	15.36M	0.00	0.00
	Net Debt
-180.69M	-175.39M	-72.29M	-145.97M	-128.71M
	Total Liabilities
354.55M	498.67M	329.43M	413.13M	300.58M
	Stockholders Equity
336.02M	34.21M	73.86M	-73.35M	63.80M
Cash Flow		Free Cash Flow
118.27M	94.14M	11.49M	27.94M	60.33M
	Operating Cash Flow
126.84M	102.06M	20.58M	36.05M	66.51M
	Investing Cash Flow
-149.47M	-22.54M	-91.23M	45.23M	-6.45M
	Financing Cash Flow
25.99M	21.77M	13.97M	-68.40M	-8.59M

Cellebrite DI Technical Analysis

Technical Analysis Sentiment

Positive

Last Price19.85

Price Trends

50DMA

18.93

Positive

100DMA

20.57

Negative

200DMA

18.96

Positive

Market Momentum

MACD

0.15

Negative

RSI

55.03

Neutral

STOCH

50.10

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLBT, the sentiment is Positive. The current price of 19.85 is above the 20-day moving average (MA) of 19.40, above the 50-day MA of 18.93, and above the 200-day MA of 18.96, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 50.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLBT.

Cellebrite DI Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QLYS	78 Outperform	$4.96B	27.89	40.23%	―	9.58%	12.41%
CLBT	68 Neutral	$4.75B	―	-152.88%	―	23.41%	-222.82%
VRNS	64 Neutral	$5.13B	―	-22.21%	―	13.34%	13.71%
S	64 Neutral	$6.31B	―	-17.68%	―	32.25%	20.56%
RPD	61 Neutral	$1.72B	67.46	164.75%	―	6.19%	―
Sector *	60 Neutral	$11.39B	10.50	-6.42%	2.97%	7.77%	-11.17%
TENB	60 Neutral	$3.85B	―	-12.09%	―	11.79%	35.35%

* Technology Sector Average

Performance Comparison

CLBT

Cellebrite DI

19.85

8.55

75.66%

QLYS

Qualys

136.48

-13.25

-8.85%

VRNS

Varonis Systems

45.84

2.05

4.68%

RPD

Rapid7

26.74

-11.37

-29.83%

TENB

Tenable Holdings

33.48

-11.26

-25.17%

SentinelOne

20.12

-1.47

-6.81%

Cellebrite DI Earnings Call Summary

Earnings Call Date:Feb 13, 2025

(Q4-2024)

% Change Since: -20.35%|

Next Earnings Date:May 14, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive performance with strong revenue, ARR growth, and cash flow metrics. While there are some challenges in the US federal sector and from market exits, the company anticipates these will be short-term issues. The achievements in revenue, cloud-based ARR, and FedRAMP status outweigh the lowlights.

Q4-2024 Updates

Positive Updates

Exceeded Revenue and Adjusted EBITDA Targets

Cellebrite exceeded original revenue and adjusted EBITDA targets for 2024 and delivered at the higher end of ARR expectations. ARR grew 25% year-over-year to $396 million.

Strong Free Cash Flow

Achieved $122 million in free cash flow in 2024, indicating solid cash generation capabilities.

Rule of 50 Performance

Delivered a Rule of 50 performance with 25% ARR growth and 25% adjusted EBITDA margins.

Increased Cloud-Based ARR

ARR from cloud-based offerings nearly doubled to 17% of total ARR in 2024.

FedRAMP-Ready Status

Achieved FedRAMP-ready status at a high-level designation, opening future opportunities within the US federal sector.

Negative Updates

Federal Sector Headwinds

Faced modest headwinds from regime changes causing delays in US federal sector purchasing activity.

Impact from Exiting Certain Markets

Exiting certain countries is expected to modestly impact first-quarter results, though it contributed to improved gross retention.

Company Guidance

During the Cellebrite Fourth Quarter and Full Year 2024 Financial Results Conference Call, the company provided guidance for 2025, highlighting several key metrics. For the full year 2025, Cellebrite anticipates ARR growth between 21% and 25%, reaching $480 million to $495 million. Revenue is projected to increase by 20% to 22%, amounting to $480 million to $490 million. The company aims for adjusted EBITDA in the range of $113 million to $123 million, maintaining a margin of 24% to 25%. The guidance also emphasized the continuation of strong performance in subscription services, with expectations for further growth in their cloud-based solutions and increased penetration of their Guardian and Pathfinder products. The company plans to focus on sustaining top-line growth and enhancing profitability and free cash flow in the upcoming year.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.