Cellebrite DI Ltd (CLBT) 2024 Q1 法說會逐字稿

Welcome to the Cellebrite first-quarter 2024 financial results conference call. (Operator Instructions) I would now like to turn the call over to your first speaker today, Mr. Andrew Kramer. Mr. Kramer, the floor is yours.

歡迎參加 Cellebrite 2024 年第一季財務業績電話會議。（操作員指示）我現在想將電話轉給今天第一位發言者安德魯·克萊默先生。克萊默先生，請發言。

Thank you very much, Leo. Good morning, good afternoon. Welcome to Cellebrite's first-quarter 2024 financial results conference call. Joining me today from just outside of Tel Aviv, are Yossi Carmil Cellebrite's CEO; and Dana Gerner, Cellebrite's CFO.

非常感謝你，利奧。早安，下午好。歡迎參加 Cellebrite 2024 年第一季財務業績電話會議。今天從特拉維夫郊外與我一起來的是 Yossi Carmil Cellebrite 的執行長；以及 Cellebrite 財務長 Dana Gerner。

There is a slide presentation that accompanies our prepared remarks. Please advance the slides in the webcast viewer to follow our commentary, we will call out the slide number we are referring to in our remarks. This call is being recorded and a replay of the recording will be made available on our website shortly after the call.

我們準備好的評論附有一個幻燈片簡報。請在網路廣播檢視器中前進幻燈片以關注我們的評論，我們將標出我們在評論中提到的幻燈片編號。本次通話正在錄音，通話後不久將在我們的網站上提供錄音重播。

Starting with slide number 2, a copy of today's press release and financial statements, including GAAP to non-GAAP reconciliations, slide presentation, and the quarterly financial tables and supplemental historical financial information for the first quarter of 2024 of each quarter of 2023 and 2022 are available on the Investor Relations website at investors.cellebrite.com.

從第2 號投影片開始，今天的新聞稿和財務報表的副本，包括GAAP 與非GAAP 調節表、幻燈片演示以及2024 年第一季的季度財務表格以及2023 年和2022 年每個季度的補充歷史財務資訊可在投資者關係網站 Investors.cellebrite.com 上取得。

Also, unless stated otherwise, our discussion for the first quarter 2022 -- sorry, 2024 financial metrics as well as the financial metrics provided in our outlook, will be done on a non-GAAP basis only and all historical comparisons are with the first quarter of 2023, unless otherwise noted. In addition, please note that the statements made during this call that are not statements of historical fact constitute forward-looking statements.

此外，除非另有說明，我們對 2022 年第一季的討論——抱歉，2024 年財務指標以及我們展望中提供的財務指標將僅在非 GAAP 基礎上進行，所有歷史比較均與第一季度進行2023 年，除非另有說明。此外，請注意，本次電話會議中所做的非歷史事實陳述構成前瞻性陳述。

All forward-looking statements are subject to risks and uncertainties and other factors that could cause matters expressed or implied by those forward-looking statements not to occur. They could also cause the actual results to differ materially from historical results and or from forecasts. Some of these forward-looking statements are discussed under the heading Risk Factors and elsewhere in the company's annual report on Form 20-F filed with the SEC on March 21, 2024, and as amended on April 12, 2024. The company does not undertake to update any forward-looking statements to reflect future events or circumstances.

所有前瞻性陳述均受到風險和不確定性以及其他因素的影響，這些因素可能導致這些前瞻性陳述明示或暗示的事項不發生。它們還可能導致實際結果與歷史結果和/或預測有重大差異。其中一些前瞻性陳述在公司於 2024 年 3 月 21 日向 SEC 提交並於 2024 年 4 月 12 日修訂的 20-F 表格年度報告的“風險因素”標題和其他地方進行了討論。該公司不承諾更新任何前瞻性陳述以反映未來事件或情況。

Slide number 3 provides the agenda for today's call. And as you'll hear we started 2024 off on a positive note with another very solid quarter. We moved forward with good momentum and are excited about the opportunities we see ahead to further expand our business this year. With that said, I'd like to turn the call over to Yossi Carmil, Cellebrite's CEO.

第 3 號投影片提供了今天電話會議的議程。正如您將聽到的，我們以積極的態度開啟了 2024 年，又一個非常穩健的季度。我們以良好的勢頭向前發展，並對今年未來進一步擴大業務的機會感到興奮。話雖如此，我想將電話轉給 Cellebrite 執行長 Yossi Carmil。

Thank you, Andrew, and thank you all for joining us today. The financial results highlighted on slide 4 demonstrate that Cellebrite is off to a very solid start in 2024. We delivered a strong first quarter performance anchored by the further expansion of our business, improved profitability compared with the same quarter of one year ago, and meaningful strategic progress.

謝謝你，安德魯，也謝謝大家今天加入我們。在第 4 投影片中突出顯示的財務表現表明，Cellebrite 在 2024 年有一個非常堅實的開端。我們在第一季取得了強勁的業績，這得益於業務的進一步擴張、盈利能力較上年同期有所提高以及有意義的戰略進展。

As I say, it is rewarding to see our solutions are making a tangible difference in accelerating justice around the world. And while I plan to share more about the market opportunity, our strategy, our achievements, and our outlook, I would like to turn now to slide 4 to briefly recap our Q1 results and selected KPIs.

正如我所說，看到我們的解決方案在加速世界各地的正義方面產生切實的影響是令人欣慰的。雖然我計劃分享更多有關市場機會、我們的策略、我們的成就和我們的前景的信息，但我現在想轉向幻燈片 4，簡要回顧我們的第一季業績和選定的 KPI。

And more specifically, ARR grew 27% to $331.8 million. We continue to see strong ARR growth globally. And our Q1 ARR expansion is primarily driven by our success in expanding existing customers' relationships, which is consistent with historical trends. The total revenue of $89.6 million increased 26% on the strength of a 29% increase in subscription software revenue. Adjusted EBITDA was $17.6 million or 20% on a margin basis, and we reported non-GAAP earnings per share of $0.08. We also ended the first quarter with cash, deposits, and investments totaling approximately $347 million, a $15.5 million increase since the end of 2023. Of the trailing 12 months, our ARR growth rates and adjusted EBITDA margin trended above the baseline target of Rule of 45.

更具體地說，ARR 成長了 27%，達到 3.318 億美元。我們繼續看到全球 ARR 強勁成長。我們第一季 ARR 的擴張主要是由我們在擴大現有客戶關係方面的成功所推動的，這與歷史趨勢一致。由於訂閱軟體收入成長了 29%，總收入成長了 26%，達到 8,960 萬美元。調整後 EBITDA 為 1760 萬美元，按利潤率計算為 20%，我們報告的非 GAAP 每股收益為 0.08 美元。截至第一季末，我們的現金、存款和投資總額約為 3.47 億美元，較 2023 年底增加了 1,550 萬美元。在過去 12 個月中，我們的 ARR 成長率和調整後 EBITDA 利潤率均高於 45 法則的基線目標。

Turning to slide 5. As most of you know, Cellebrite hosted its first ever Investor Day in late March this year. And this was a great opportunity to provide our analysts and shareholders with a deeper dive into our business and our bright future. During this event, we highlighted the underlying trends, Cellebrite's overarching strategy, our compelling Case-to-Closure platform and flagship solutions, as well as key technology and go-to-market initiatives that will enable us to convert meaningful ARR and revenue growth into further improvements in adjusted EBITDA. And we expect that our ARR and top-line expansion over the coming years will continue to primarily come from further expansion within our installed base of customers.

轉到投影片 5。正如大多數人所知，Cellebrite 於今年 3 月底舉辦了第一屆投資者日。這是一個很好的機會，可以讓我們的分析師和股東更深入地了解我們的業務和光明的未來。在本次活動中，我們重點介紹了基本趨勢、Cellebrite 的整體策略、引人注目的Case-to-Closure 平台和旗艦解決方案，以及關鍵技術和上市計劃，這些將使我們能夠將有意義的ARR和收入成長轉化為調整後 EBITDA 進一步改善。我們預計未來幾年我們的 ARR 和營收擴張將繼續主要來自我們已安裝客戶群的進一步擴張。

Now I'd like to explain why we are so bullish on this opportunity. So first, there are several powerful trends that we believe will require our customers to invest more in digital investigative solutions like ours. And most notably, the number of cases that has a digital component continues to increase. And the digital component is often the most meaningful part of investigations to date. As digital becomes more pervasive in crime, the growth in both data volume and data complexity makes it harder for law-enforcement to capture and analyze this information. And those issues are compounded by structural operational inefficiencies arising from siloed, manual, and time-consuming processes as well as greater scrutiny on law enforcement practices. In an environment where overall budgets and headcount grow modestly, we continue to see more spending directed to disruptive technologies like ours that can help our customers address these issues and solve more cases faster and more efficiently.

現在我想解釋為什麼我們如此看好這個機會。首先，我們認為有幾個強大的趨勢將要求我們的客戶對像我們這樣的數位調查解決方案進行更多投資。最值得注意的是，具有數字組件的案例數量持續增加。數字部分通常是迄今為止調查中最有意義的部分。隨著數位化在犯罪中變得越來越普遍，數據量和數據複雜性的增長使執法部門更難捕獲和分析這些資訊。由於孤立、手動和耗時的流程以及對執法實踐的更嚴格審查而導致結構性運營效率低下，這些問題變得更加複雜。在整體預算和員工人數適度增長的環境中，我們繼續看到更多的支出用於像我們這樣的顛覆性技術，這些技術可以幫助我們的客戶解決這些問題並更快、更有效地解決更多案例。

Second, we are well positioned with our existing customers to continue increasing our wallet share through the three-flagship offering in our Case-to-Closure platform, our branded C2C platform. Now these solutions address the key challenges in the digital investigation lifecycle that involves collecting, reviewing, sharing, and analyzing digital evidence. And with spending on our solutions currently representing just a fraction of our customers’ annual budgets, there is a substantial room for upside as digital becomes the primary starting point for an investigation. I'd like to take a moment to elaborate on that.

其次，我們在現有客戶中處於有利位置，可以透過我們的C2C品牌平台Case-to-Closure平台中的三旗艦產品繼續增加我們的錢包份額。現在，這些解決方案解決了數位調查生命週期中的關鍵挑戰，包括收集、審查、分享和分析數位證據。目前，我們解決方案的支出僅佔客戶年度預算的一小部分，隨著數位化成為調查的主要起點，還有很大的上升空間。我想花點時間詳細說明這一點。

And within the digital forensic units, the segment where we have established our leadership through relationship with over 5,300 public sector agencies. We are pretty much at the earliest stage of a major product upgrade cycle involving Inseyets, our next-generation digital forensics software solution. Inseyets deliver a more robust integrated set of capabilities that helps our customers access more devices, extract more data, and reveal more information relevant to their investigations. With most of our customers relying on Cellebrite for their primary digital forensics software solution to collect and review digital evidence for mobile phones and other digital witnesses, we see substantial opportunity to better support our customers in the digital forensics units as they broaden the scope of their labs operation and extend our technology also out into the field to support an expanding range of use cases.

在數位鑑識部門中，我們透過與 5,300 多個公共部門機構的關係確立了我們的領導地位。我們幾乎處於涉及 Inseyets（我們的下一代數位鑑識軟體解決方案）的主要產品升級週期的最早階段。Inseyets 提供更強大的整合功能集，幫助我們的客戶存取更多裝置、提取更多資料並揭示更多與其調查相關的資訊。由於我們的大多數客戶依靠Cellebrite 作為其主要數位鑑識軟體解決方案來收集和審查手機和其他數位證人的數位證據，因此我們看到了巨大的機會，可以更好地支援數位鑑識部門的客戶，因為他們擴大了他們的範圍實驗室運作並將我們的技術擴展到現場，以支援不斷擴大的用例範圍。

Just as important, our customers are increasingly recognizing that they must transform their workflows to drive efficiency and productivity, facilitate better collaboration and strengthen the chain of custody around digital evidence – dynamics which open the door for Guardian, our SaaS-based case and evidence management solution.

同樣重要的是，我們的客戶越來越認識到他們必須轉變工作流程以提高效率和生產力，促進更好的協作並加強圍繞數位證據的監管鏈- 這為Guardian（我們基於SaaS 的案例）和動態打開了大門。

And there is also the investigative units. We are augmenting our continued growth in the digital forensics units by accelerating our business in the investigative units of our customers. Maybe more specifically, the digital evidence captured by Inseyets, opens up cross-sell and upsell opportunities for evidence management and analytic solutions. Our offerings for the investigative unit to ensure timely, secure access to digital evidence, dramatically reduced the time involved in reviewing digital evidence and help surface leads and connections buried within mountains of data, all of which is critical to expediting investigations.

還有調查單位。我們正在透過加速客戶調查部門的業務來增強數位鑑識部門的持續成長。也許更具體地說，Inseyets 捕獲的數位證據為證據管理和分析解決方案提供了交叉銷售和追加銷售的機會。我們為調查部門提供的產品可確保及時、安全地存取數位證據，大大減少了審查數位證據所需的時間，並幫助發現埋藏在海量數據中的線索和聯繫，所有這些對於加快調查至關重要。

As we move forward, we are committed to further enhancing the integration between our flagships offering and further evolving our pricing and packaging in ways that will support broader and more pervasive use of our solutions with national, regional, and local law-enforcement, as well as with blue-chip enterprises and service providers. To fully realize our growth potential, we're making meaningful, I'll say, thoughtful investments, in our technology and our go-to-market initiatives that we believe will further strengthen our ability to address our customers' biggest pain points.

隨著我們的前進，我們致力於進一步加強我們的旗艦產品之間的集成，並進一步改進我們的定價和包裝，以支持我們的解決方案在國家、區域和地方執法部門中得到更廣泛和更普遍的使用。為了充分發揮我們的成長潛力，我們正在對我們的技術和市場推廣計劃進行有意義的、深思熟慮的投資，我們相信這將進一步增強我們解決客戶最大痛點的能力。

In terms of our technology investments, we will continue to focus on three key areas. The first area is advanced evidence acquisition, which is about making sure we can help law enforcement obtain all the rich information that resides within today's mobile phones, computers, and cloud applications. With Inseyets, customers who've already upgraded, are now extracting substantially more data than they did previously. The second area is about helping our customers leverage the power of the cloud, which will provide, which provides them with greater computing elasticity, facilitate broader interagency and multi-agency collaboration, and minimize IT and security concerns. The third area involves harnessing AI to enable greater automation and increased operational efficiency. We made tangible progress in each of these areas during the first quarter.

在技​​術投入方面，我們將繼續關註三個關鍵領域。第一個領域是高級證據獲取，旨在確保我們能夠幫助執法部門獲取當今手機、電腦和雲端應用程式中存在的所有豐富資訊。透過 Inseyets，已經升級的客戶現在提取的資料比以前多得多。第二個領域是幫助我們的客戶利用雲端的力量，這將為他們提供更大的運算彈性，促進更廣泛的機構間和多機構協作，並最大限度地減少 IT 和安全問題。第三個領域涉及利用人工智慧來實現更大的自動化和提高營運效率。第一季我們在每個領域都取得了實際進展。

From a go-to-market perspective, we are currently broadening our sales coverage in key regions and customer segments in both the US and Europe, while leveraging prior investments to capitalize on opportunities in Asia Pacific. But just to be clear, we are reallocating existing resources as we globalize and optimize certain areas such as sales operations, technical presales, and post-sale customer experience which enabled to add more quota-carrying sales reps and specialists dedicated to nurturing long lead time deals in both digital forensics units and in the investigative units.

從進入市場的角度來看，我們目前正在擴大美國和歐洲關鍵地區和客戶群的銷售覆蓋範圍，同時利用先前的投資來抓住亞太地區的機會。但需要明確的是，隨著我們全球化和優化某些領域（例如銷售營運、售前技術和售後客戶體驗），我們正在重新分配現有資源，這使得能夠增加更多的配額銷售代表和專家，致力於培養較長的交貨時間涉及數位取證單位和調查單位。

A great example for our ability to blend our technology go-to-market and other strategic initiatives to further expand our business over the longer term is in the US federal markets. In mid-March, we announced the launch of the process to authorize our SaaS offerings with the Federal Risk and Authorization management program known as FedRAMP. We do believe that advancing our work over the coming quarters to ensure that our SaaS solution meets the highest standards of security and data compliance will play an important role in our broader efforts to unlock more opportunities in the federal marketplace.

美國聯邦市場就是我們能夠將技術推向市場和其他策略性舉措相結合以進一步擴大我們的長期業務的一個很好的例子。3 月中旬，我們宣布啟動聯邦風險和授權管理計劃（稱為 FedRAMP）授權我們的 SaaS 產品的流程。我們確實相信，在未來幾個季度推進我們的工作，以確保我們的SaaS 解決方案滿足安全和數據合規性的最高標準，將在我們在聯邦市場釋放更多機會的更廣泛努力中發揮重要作用。

As we advance these initiatives to capitalize to our upgrade, upsell and cross-sell opportunities within our installed public-sector customer base, we will see our technology deployed more pervasively as we extend our reach into new units, new departments, and new buying centers, what we consider to be new sub logos within the logos we've already captured. We also expect that our organic growth will benefit modestly from annual price increases and from the expansion of our private sector business. And finally, our organic growth will benefit as we continue to win net new customers.

當我們推動這些措施以利用我們已安裝的公共部門客戶群中的升級、追加銷售和交叉銷售機會時，隨著我們將業務範圍擴展到新單位、新部門和新採購中心，我們將看到我們的技術得到更普遍的部署，我們認為是我們已經捕獲的徽標中的新子徽標。我們也預計，我們的有機成長將適度受益於年度價格上漲和私營部門業務的擴張。最後，隨著我們繼續贏得淨新客戶，我們的有機成長將受益。

Now while new logos typically spend minimally with us in the first year. Their spending growth typically keeps pace with growth of the broader business. And also, thanks to our strong financial foundation, we have the ability to advance opportunities that can accelerate our time to market with high value technology and capabilities as well as extend our reach into growth oriented adjacent markets and capture more of our TAM.

現在，雖然新標誌通常在第一年與我們花費很少。他們的支出成長通常與更廣泛的業務成長保持同步。此外，由於我們強大的財務基礎，我們有能力抓住機會，利用高價值技術和能力加快上市時間，並將我們的觸角擴展到以成長為導向的鄰近市場，並獲得更多的 TAM。

As we move into 2024, our top four strategic priorities remain unchanged. First, increasing our leadership in the digital forensic units. Second, accelerating our growth within investigative units. Third, building our business in the private sector where our differentiated value proposition for data collection by enterprises and service providers is built on supporting a wide range of data sources, different work environments, and deployment flexibility. And fourth, harnessing the power of the cloud.

進入 2024 年，我們的四大策略重點保持不變。首先，增強我們在數位鑑識部門的領導地位。二是加快偵查隊伍建設。第三，在私部門建立我們的業務，我們對企業和服務提供者資料收集的差異化價值主張建立在支持廣泛的資料來源、不同的工作環境和部署靈活性的基礎上。第四，利用雲的力量。

Now I'd like to briefly highlight the Q1 wins, which help illustrate our progress in executing on each of these priorities. First, our Q1 ARR growth of 27% reflects positively on our ability to extend our leadership in the digital forensic units of our customers. As we look ahead over the next three years, an important strategic objective and fundamental growth driver will be to upgrade the vast majority of our installed base of approximately 32,000 public and private digital forensics software licenses to Inseyets.

現在我想簡要地強調第一季的勝利，這有助於說明我們在執行每個優先事項方面取得的進展。首先，我們第一季的 ARR 成長了 27%，這積極反映了我們有能力擴大我們在客戶數位取證部門的領導地位。展望未來三年，一個重要的策略目標和基本成長動力將是將我們約 32,000 個公共和私人數位鑑識軟體授權的絕大多數安裝基礎升級到 Inseyets。

And during the first quarter of 2024, which is, by the way, the first full quarter that Inseyets has been available to all customers, we made good initial progress in converting our installed license base to Inseyets. The upgrade to Inseyets delivers substantially higher value in terms of enhanced capabilities and optimized workflows while creating upsell opportunities for customers of all sizes through high value add-on modules that address the needs for lawful access, workflow automation, extraction of other digital sources, and enhanced evidence management functionality. Now we expect to see upgrade activity accelerate during the second half of this year and into 2025 as customers incorporate these investments into their annual budgets.

順便說一句，在 2024 年第一季度，這是 Inseyets 向所有客戶提供的第一個完整季度，我們在將已安裝的許可證基礎轉換為 Inseyets 方面取得了良好的初步進展。Inseyets 的升級在增強的功能和優化的工作流程方面提供了更高的價值，同時透過高價值附加模組為各種規模的客戶創造追加銷售機會，這些模組滿足合法存取、工作流程自動化、提取其他數字源和增強的證據管理功能。現在，隨著客戶將這些投資納入年度預算，我們預計升級活動將在今年下半年和 2025 年加速。

One notable Q1 Inseyets upgrade involved a larger national police force in South America. We choose that upgrade as an opportunity to broaden its lawful access capabilities to all of its major offices as well as broaden its use of Pathfinder. As a result, we nearly tripled this customer's ARR. In Europe, we were pleased to see a large military agency upgrade to Inseyets to enhance its counterterrorism capabilities for faster trials outside of the traditional lab environment, along with using our Smart Search, our open-source intelligence tool, to generate rapid intelligence on persons and organizations of interest. As a result, this account’s ARR more than doubled itself.

Inseyets 第一季的一項值得注意的升級涉及在南美洲擴大國家警察部隊。我們選擇此次升級作為一個機會，以擴大其對所有主要辦事處的合法存取能力，並擴大其對 Pathfinder 的使用。結果，我們將該客戶的 ARR 提高了近兩倍。在歐洲，我們很高興看到大型軍事機構升級到Inseyets，以增強其反恐能力，以便在傳統實驗室環境之外進行更快的試驗，同時使用我們的智能搜索（我們的開源情報工具）來快速產生有關人員的情報和感興趣的組織。結果，該帳戶的 ARR 增加了一倍以上。

Our second priority is to accelerate our growth within the investigative units of our law enforcement customers. Now the key offering for investigators is Pathfinder, our AI powered analytic solution that enables law enforcement agencies to expedite their investigations. Pathfinder substantially reduces the amount of time it can take a detective to view or review text messages, photos, and videos by up to 80% while uncovering and linking data, surfacing new leads, identifying connections and anomalies to capture the most meaningful evidence. And we are pleased with the trajectory for Pathfinder and believe that the investments to add sales specialists will help us accelerate our progress.

我們的第二要務是加速執法客戶調查部門的發展。現在，為調查人員提供的關鍵產品是 Pathfinder，這是我們由人工智慧驅動的分析解決方案，使執法機構能夠加快調查速度。Pathfinder 可將偵探查看或審查簡訊、照片和影片所需的時間大幅減少高達 80%，同時發現和連結資料、發現新線索、識別關聯和異常以捕獲最有意義的證據。我們對 Pathfinder 的發展軌跡感到滿意，並相信增加銷售專家的投資將幫助我們加快進展。

Our Q1 Pathfinder wins were highlighted by a midsized city police department in the US Southeast region that plans to use our analytics to support their organized crime unit's ability to conduct cross-case analysis and accelerate investigation involving multiple phones. Now this win extended the scope of our relationship with this customer, increasing our ARR by 30%.

美國東南部地區的一個中型城市警察局強調了我們第一季度探路者的勝利，該部門計劃使用我們的分析來支持他們的有組織犯罪部門進行跨案件分析並加速涉及多部手機的調查的能力。現在，這場勝利擴大了我們與該客戶的關係範圍，使我們的 ARR 提高了 30%。

Our third priority is to expand our business in the private sector, primarily in support of corporate investigations and e-discovery use cases. We recently appointed a new Head of Enterprise Solutions to lead the strategic direction and drive product development as we support our customers through both SaaS and on-prem solutions, to collect data from a wide range of devices, regardless of whether the user is working from home or in the office. During the first quarter, we extended our relationship with a Fortune 250 company in the waste management industry. This customer consolidated its data collection activities with Cellebrite by replacing its incumbent solution for support remote computer collection with our Endpoint Inspector SaaS. The win more than tripled our ARR at this account.

我們的第三個優先事項是擴大我們在私部門的業務，主要是支援企業調查和電子證據開示用例。我們最近任命了一位新的企業解決方案主管來領導策略方向並推動產品開發，因為我們透過 SaaS 和本地解決方案為客戶提供支持，從各種設備收集數據，無論用戶是否使用家中或辦公室。第一季度，我們擴大了與廢棄物管理產業一家財富 250 強公司的合作關係。該客戶透過將其用於支援遠端電腦收集的現有解決方案替換為我們的 Endpoint Inspector SaaS，將其資料收集活動與 Cellebrite 進行了整合。這場勝利使我們在該帳戶的 ARR 增加了三倍多。

And the fourth strategic priority is to help our customers harness the power of the cloud to make it easier, faster, and more secure to accelerate the time to actionable evidence. Now, although law enforcement agencies are generally early into the adoption of cloud technologies, approximately two thirds of our customers expect to adopt cloud-based solutions over the next three years. And we are focusing our development roadmaps and infrastructure investments accordingly. And we are pleased with the interest that is building in Guardian, our SaaS-based solution for case and evidence management.

第四個策略重點是幫助我們的客戶利用雲端的力量，使其更容易、更快、更安全地加快獲得可採取行動的證據的時間。現在，儘管執法機構普遍較早採用雲端技術，但我們大約三分之二的客戶預計在未來三年內採用基於雲端的解決方案。我們正在相應地關注我們的發展路線圖和基礎設施投資。我們對 Guardian 產生的興趣感到高興，Guardian 是我們基於 SaaS 的案件和證據管理解決方案。

And during Q1, a large city police department in the US with over 1,000 small offices, selected Guardian to optimize their evidence management workflows. And more specifically, Guardian will help investigators solve more cases by freeing up hours that detectives previously spent on any given case, driving to and from the primary digital forensic labs to drop of devices and pickup evidence reports as well as eliminate the need for detective to purchase their own flash drives and other external storage devices to view digital evidence, reports, and information.

在第一季度，美國一個擁有 1,000 多個小型辦公室的大城市警察局選擇 Guardian 來優化其證據管理工作流程。更具體地說，Guardian 將幫助調查人員解決更多案件，從而節省偵探以前花在任何特定案件上的時間，開車往返於主要數位取證實驗室，丟棄設備並獲取證據報告，並消除偵探需要購買自己的快閃磁碟機和其他外部儲存裝置來查看數位證據、報告和資訊。

Let's move to slide 7. Now, we head into the second quarter of 2024 with good momentum, especially with respect to our near-term sales pipeline. We continue to see customer budgets trend favorably in support of their plans to enhance and expand their digital investigative capabilities with our solutions over the coming quarters.

讓我們轉到投影片 7。現在，我們以良好的勢頭進入 2024 年第二季度，尤其是在我們的近期銷售管道方面。我們繼續看到客戶預算趨勢良好，以支持他們在未來幾季透過我們的解決方案增強和擴展數位調查能力的計劃。

To capitalize, we have continued to add talented professionals to our team, which included the appointment of David Gee, as our new Chief Marketing Officer. And looking ahead, we believe we are on track to achieve our 2024 financial targets and have reaffirmed our outlook for this year. And with that said, we know that there is a lot of hard work that lies ahead in order for us to achieve our objectives this year.

為了充分利用這一優勢，我們不斷為我們的團隊增添才華橫溢的專業人士，其中包括任命 David Gee 為我們新的首席行銷長。展望未來，我們相信我們有望實現 2024 年的財務目標，並重申了今年的前景。話雖如此，我們知道為了實現今年的目標，我們還有很多艱苦的工作要做。

So in summary, Cellebrite is well positioned with a differentiated and compelling software platform that is making a tangible difference in accelerating justice through more accessible, intelligent, actionable, and defensible digital evidence. And we are pleased to have continued to onboard talented individuals who share our commitment to advancing Cellebrite's mission.

總而言之，Cellebrite 擁有一個獨特且引人注目的軟體平台，該平台透過更易於存取、智能、可操作和可辯護的數位證據，在加速司法公正方面發揮了切實的作用。我們很高興繼續聘用與我們一樣致力於推動 Cellebrite 使命的優秀人才。

We expect that our strong financial foundation will be further fortified by our anticipated fundamental performance over the coming quarters. And as a result, we have sufficient fiscal flexibility to consider a wide range of strategic moves that can help us accelerate time to market with high-value capabilities, extend our reach into growth-oriented adjacencies, and enhance shareholder value. And overall, we move forward with confidence that we have the people, the partners, the products, and the programs that will help us capitalize on the exciting opportunities we see. So that concludes my prepared remarks. And at this point, I'll turn the call over to Dana.

我們預計未來幾季的預期基本表現將進一步鞏固我們強大的財務基礎。因此，我們有足夠的財務靈活性來考慮廣泛的策略性舉措，這些舉措可以幫助我們加快高價值能力的上市時間，將業務範圍擴展到以成長為導向的周邊地區，並提高股東價值。總的來說，我們充滿信心地前進，我們擁有的人員、合作夥伴、產品和計劃將幫助我們利用我們所看到的令人興奮的機會。我準備好的發言就到此結束。此時，我會將電話轉給達納。

Thank you, Yossi. As noted in Yossi's comments earlier, our Q1 results demonstrate that we are off to a very solid start for the year. We delivered revenue above our target, ARR at the higher end of our plan, and stronger than anticipated adjusted EBITDA.

謝謝你，約西。正如 Yossi 先前的評論中所指出的，我們第一季的業績表明我們今年有了一個非常堅實的開始。我們的收入高於我們的目標，ARR 達到我們計劃的高端，並且強於預期的調整後 EBITDA。

So let's begin the review of the Q1, on slide 9. We reported first quarter revenue of $89.6 million, an increase of 26%. A 29% increase in subscription revenue was partially offset by a more moderate increase of hardware sales within our other nonrecurring revenue and a slight decline of our professional services revenue. Within professional services, the decline in advanced services revenue is correlated with the growth in higher sales of our advanced flow from access offering. And this decline was mostly offset by the growth in training and certification. Overall, subscription revenue represented 88% of total revenue. And we expect that it will continue to trend within the mid to high 80% range over the coming quarters.

讓我們開始回顧幻燈片 9 上的 Q1。我們報告第一季營收為 8,960 萬美元，成長 26%。訂閱收入成長 29%，但被其他非經常性收入中硬體銷售的溫和成長以及專業服務收入的小幅下降所部分抵消。在專業服務中，高級服務收入的下降與我們來自接入服務的高級流程銷售額的成長相關。這種下降大部分被培訓和認證的成長所抵消。整體而言，訂閱收入佔總收入的88%。我們預計未來幾季它將繼續保持在 80% 的中高端範圍內。

Slide 10 details our ARR growth drivers. Our ARR grew 27% year-on-year to $332 million at the end of March 2024. We maintained healthy gross retention of approximately 91% for the first quarter. Our ARR growth was driven primarily by existing customers expansion, with new logos contributing modestly, which is consistent with our growth strategy. In terms of ARR growth by product area, we have continued to see customers expand their use of our Inseyets Collect and Review solutions. This growth is complemented by our continued progress cross-selling and upselling, our evidence management and AI-powered investigative analysis. Our geographic mix for ARR for the 12 months ended on March 31, '24 was generally in line with historical trends, with the Americas representing our largest geography at 52% of total, followed by EMEA at 36%, and Asia Pacific at 12%. We are generally pleased with ARR expansion during Q1 in each major region. With the Americas growing 28%, EMEA increasing 25%, and Asia Pacific up 30%.

投影片 10 詳細介紹了我們的 ARR 成長驅動因素。截至 2024 年 3 月，我們的 ARR 年增 27% 至 3.32 億美元。第一季我們的總留存率維持在約 91% 的健康水準。我們的 ARR 成長主要是由現有客戶的擴張所推動的，新商標的貢獻不大，這與我們的成長策略一致。就按產品領域劃分的 ARR 成長而言，我們不斷看到客戶擴大對我們 Inseyets Collect and Review 解決方案的使用。這種成長得到了我們持續進步的交叉銷售和追加銷售、證據管理和人工智慧驅動的調查分析的補充。截至2024 年3 月31 日的12 個月，我們的ARR 地域組合總體上符合歷史趨勢，美洲是我們最大的地域，佔總數的52%，其次是歐洲、中東和非洲(EMEA)，佔36% ，亞太地區佔12% 。我們對第一季每個主要地區的 ARR 擴張總體感到滿意。其中美洲成長了 28%，歐洲、中東和非洲成長了 25%，亞太地區成長了 30%。

Slide 11 details the historical trends for our non-GAAP gross margin and non-GAAP operating expenses, which exclude share-based compensation, amortization of intangible assets, and acquisition related expenses. We reported a first quarter gross margin of 85.7%, which was slightly above our plans and up 260 basis points from the same quarter one year ago. The improvement is due to further efficiencies introduced within our professional services activities combined with an improved margin profile on hardware related sales.

投影片 11 詳細介紹了我們的非 GAAP 毛利率和非 GAAP 營運費用的歷史趨勢，其中不包括股權激勵、無形資產攤銷和收購相關費用。我們公佈的第一季毛利率為 85.7%，略高於我們的計劃，比一年前同一季度提高了 260 個基點。這項改善是由於我們的專業服務活動進一步提高了效率，加上硬體相關銷售的利潤狀況有所改善。

In terms of operating expenses, our first quarter operating costs were $60.9 million, a 14% increase from the prior year. While we have remained disciplined with overall spending, the year-over-year increase primarily reflects the timing and phasing of hiring activity and related costs as well as the timing and magnitude of certain sales and marketing programs, enhancement of our compliance infrastructure, and the impact of other onetime projects. We ended the quarter with 1,052 employees, which was generally consistent with our plan. Looking closer at our hiring during the first quarter, more than half of the new talent we added was within our sales and marketing organization. Geographically, most of our first quarter 2024 new hires were added to support the growth of our business in the Americas and EMEA.

在營運費用方面，我們第一季的營運成本為 6,090 萬美元，比上年增長 14%。雖然我們對整體支出保持嚴格，但同比增長主要反映了招聘活動和相關成本的時間安排和分階段，以及某些銷售和營銷計劃的時間安排和規模、我們合規基礎設施的增強以及其他一次性項目的影響。本季末，我們有 1,052 名員工，這與我們的計畫基本一致。仔細觀察第一季的招募情況，我們增加的新人才中有一半以上來自我們的銷售和行銷組織。從地理來看，我們 2024 年第一季新增員工的大部分都是為了支持我們在美洲和歐洲、中東和非洲地區的業務成長。

Turning to slide 12. The combination of higher revenue and disciplined spending produced another quarter of improved profitability. We reported Q1 adjusted EBITDA of $70.6 million or 20% on a margin basis versus 10% one year ago. Our Q1 non-GAAP operating income was $15.9 million, with non-GAAP net income of $16.9 million, or $0.08 on a fully diluted basis. We ended Q1 with $347.3 million in cash, cash equivalents, and investments up $15.5 million from the end of the fourth quarter. The increase for the quarter primarily reflected the strong fundamental performance of the business. Our first quarter 2024 free cash flow, defined as cash flow provided by operations less capital expenditure and the purchase of intangible assets was $7.9 million.

轉到投影片 12。更高的收入和嚴格的支出相結合，又帶來了一個季度盈利能力的提高。我們報告第一季調整後 EBITDA 為 7,060 萬美元，按利潤率計算為 20%，而一年前為 10%。我們第一季的非 GAAP 營業收入為 1,590 萬美元，非 GAAP 淨利為 1,690 萬美元，或完全稀釋後的 0.08 美元。截至第一季末，我們的現金、現金等價物和投資為 3.473 億美元，較第四季末增加 1,550 萬美元。該季度的成長主要反映了該業務強勁的基本面表現。我們 2024 年第一季的自由現金流（定義為營運提供的現金流量減去資本支出和無形資產購買）為 790 萬美元。

Now let's move to slide 13, which details our financial expectations for the second quarter of 2024 and for the full year. Although it is still early in the year, we believe we are well positioned to achieve our full-year targets and have reaffirmed them.

現在讓我們轉到投影片 13，其中詳細介紹了我們對 2024 年第二季和全年的財務預期。儘管現在還處於年初，但我們相信我們有能力實現全年目標，並重申了這些目標。

In terms of the second quarter expectation, I'd like to offer some additional color and context. Our expected Q2 ARR in the ranges of $342 million to $350 million represents growth of 25% to 28% and reflects the volume of business closed thus far into the quarter, plus a range of deals in our near-term pipeline. We expect Q2 revenue in the range of $90 million to $94 million, that translates into growth of 17% to 23%. We expect our Q2 gross margins to be at the mid-point to higher end of our full year 2024 gross margin target range of 82% to 84%. We anticipate our Q2 operating costs will increase by low to mid-single digits on a percentage basis over Q1 levels as we continue to fully absorb our first quarter hires and further expand our team during the second quarter. These expectations set the stage for Q2 adjusted EBITDA in the range of $16 million to $19 million. With approximately 52% of our revenue expected in the second half of the year, we still expect that the majority of adjusted EBITDA will be produced during these periods as we manage our cost base, with relatively marginal anticipated quarter-over-quarter expansion. This implies that we expect approximately 52% to 58% of our anticipated full year 2024 adjusted EBITDA to be generated in the second half of the year.

就第二季的預期而言，我想提供一些額外的色彩和背景。我們預計第二季的 ARR 在 3.42 億美元至 3.5 億美元之間，成長 25% 至 28%，反映了本季迄今已完成的業務量，以及我們近期管道中的一系列交易。我們預計第二季營收在 9,000 萬美元至 9,400 萬美元之間，成長 17% 至 23%。我們預計第二季毛利率將處於 2024 年全年毛利率目標範圍 82% 至 84% 的中階至高端。隨著我們繼續充分吸收第一季的員工並在第二季進一步擴大我們的團隊，我們預計第二季的營運成本將比第一季的百分比增加低至中個位數。這些預期使第二季調整後 EBITDA 達到 1,600 萬美元至 1,900 萬美元。我們預計下半年收入將佔約 52%，我們仍然預計大部分調整後 EBITDA 將在這些時期產生，因為我們管理成本基礎，預計季度將比去年同期擴張相對較小。這意味著我們預計 2024 年全年調整後 EBITDA 的約 52% 至 58% 將在下半年產生。

In summary, Cellebrite delivered a solid first quarter performance. It has been gratifying to see our value proposition resonating in the marketplace. As we move forward well positioned to support our customers as they increase their spending on our solutions. By delivering the Cellebrite brand promise of justice accelerated and executing against our strategic priorities, we expect to remain on course to achieve our financial objectives this year. That concludes our prepared remarks. And I'll turn the call back to the operator for Q&A.

總而言之，Cellebrite 第一季業績表現強勁。很高興看到我們的價值主張在市場上引起共鳴。隨著我們不斷前進，我們將在客戶增加在我們的解決方案上的支出時為他們提供支援。透過兌現 Cellebrite 加速正義的品牌承諾並執行我們的策略重點，我們預計今年將繼續實現我們的財務目標。我們準備好的演講到此結束。我會將電話轉回接線生進行問答。

(Operator Instructions) Shaul Eyal, TD Cowen.

（操作員指令）Shaul Eyal，TD Cowen。

Thank you. Good afternoon, good morning. Congrats on 1Q results. Yossi, the business seems to be kicking on all cylinders. I wanted to start by asking on the potential business upside you could be seeing from FedRAMP, that you guys have announced earlier in March.

謝謝。下午好，早安。恭喜第一季的結果。Yossi，生意似乎進展順利。我想先詢問你們可以從 FedRAMP 中看到的潛在業務優勢，你們已經在 3 月初宣布了這一點。

Shaul, first of all, thank you for that. Indeed, in mid-March 2024, we announced the launch of the process to authorize our SaaS offering with FedRAMP. Now, FedRAMP is an important initiative, I would say, for us. And in the context of potentially doubling our total addressable market, specifically in the federal market space in the United States and over the longer term clearly and opening, I would say, substantial opportunity over the coming years. Clearly benefit of accessing additional buying centers within the already existing logo and secure higher budgets in 2025.

Shaul，首先謝謝你。事實上，在 2024 年 3 月中旬，我們宣布啟動透過 FedRAMP 授權我們的 SaaS 產品的流程。現在，我想說，FedRAMP 對我們來說是一項重要舉措。在我們的潛在市場總量可能翻倍的背景下，特別是在美國的聯邦市場空間，從長遠來看，我想說，未來幾年將有大量機會。顯然，在現有徽標內訪問更多購買中心並在 2025 年獲得更高的預算會帶來好處。

The FedRAMP represents an area of significant investment during 2024. This is something which is important to emphasize, which, by the way, had been factored into our 2024 outlook. And the FedRAMP will initially apply to our Guardian platform and the infrastructure that supports the Guardian. But once the work is done, it will make it easier to deliver other cloud-enabled offering of our FedRAMP certified platforms. And maybe one thing that needs to be emphasized, important element of FedRAMP is an important element of a broader plan to expand the business with the federal customers. And maybe in that context, just emphasizing that it will contribute clearly to value proposition, our C2C platform in the context of an end to end. And clearly long growth runway for a substantial ARR growth in the future.

FedRAMP 是 2024 年的一個重大投資領域。這是需要強調的重要事情，順便說一句，這已納入我們的 2024 年展望中。FedRAMP 最初將應用於我們的 Guardian 平台和支援 Guardian 的基礎設施。但一旦工作完成，將更容易交付我們 FedRAMP 認證平台的其他支援雲端的產品。也許需要強調的一件事是，FedRAMP 的重要組成部分是擴大與聯邦客戶的業務的更廣泛計劃的重要組成部分。也許在這種情況下，只是強調它將在端到端的背景下為我們的 C2C 平台的價值主張做出明確的貢獻。未來 ARR 的大幅成長顯然還有很長的成長跑道。

Understood. Maybe kind of you front-run me on as maybe double-clicking on the C2C, the Case-to-Closure platform that you've just mentioned. Maybe talk about the early adoption you might be seeing among the other public sector customers? Anything you can add along these lines?

明白了。也許你會搶在我前面，雙擊你剛才提到的 C2C（Case-to-Closure）平台。也許可以談談您可能在其他公共部門客戶中看到的早期採用？您可以在這些方面添加什麼嗎？

Yeah, absolutely. Look, the C2C, the Case-to-Closure is clearly in a very early stage. We have -- and this is very encouraging news basically for any Cellebrite investor. Because we have 5,300 public sector customers. The percentage of customers who have deployed, I would say, the combination of Inseyets, Guardian, and Pathfinder as a total package is currently very small.

是的，絕對是。看，C2C、Case-to-Closure 顯然還處於非常早期的階段。我們已經——這對任何 Cellebrite 投資者來說基本上都是非常令人鼓舞的消息。因為我們有 5,300 個公共部門客戶。我想說，目前已部署 Inseyets、Guardian 和 Pathfinder 組合作為總包的客戶比例非常小。

Now I would say that we are very optimistic of our installed base of public sector customers and their ability to deploy multiple Cellebrite solutions within the C2C platform, especially as we more tightly integrate and I spoke about it on the Investors' Day, actually investing a lot in streamlining these solutions, not to mention the cloud enablement side-by-side with on-prem.

現在我想說，我們對公共部門客戶的安裝基礎以及他們在C2C 平台內部署多個Cellebrite 解決方案的能力非常樂觀，特別是當我們更加緊密地整合時，我在投資者日談到了這一點，實際上投資了我們在簡化這些解決方案方面付出了很多努力，更不用說雲端支援與本地部署的並行支援。

Now we do believe that the cloud enablement -- by the way is part of this, cloud enablement of our solution will make it even easier for customers to adopt more solutions within the C2C platform. And we expect further progress on our product road map in that direction. I hope that covers your question.

現在我們確實相信雲端支援——順便說一句，這是其中的一部分，我們解決方案的雲端支援將使客戶更容易在 C2C 平台內採用更多解決方案。我們期望我們的產品路線圖朝著這個方向取得進一步進展。我希望這能涵蓋你的問題。

No, absolutely. Loud and clear. Thank you for that. I'll cede the floor. I may come back later for additional questions. Congrats.

不，絕對是。響亮清晰。謝謝你。我將讓出發言權。我可能會稍後回來詢問其他問題。恭喜。

Thank you.

謝謝。

Thank you.

謝謝。

Brad Zelnick, Deutsche Bank.

布拉德‧澤爾尼克，德意志銀行。

Great. Thanks for taking our questions. This is Bhavin on for Brad, and congrats on the solid start to the year. Can you just elaborate a little bit more on Inseyets? And it's great to hear some of the early success that you're seeing there. But just can you give us some more elaboration in terms of what drives your confidence that the majority of customers will upgrade over the next three years from, you said, to Inseyets. And secondarily, how do we think about the monetization opportunity and the uplift that you might see as customers migrate?

偉大的。感謝您回答我們的問題。這是巴文 (Bhavin) 代表布拉德 (Brad) 發言，祝賀今年取得了良好的開局。能詳細介紹一下 Inseyets 嗎？很高興聽到您在那裡看到的一些早期成功。但您能否給我們更多的闡述，說明是什麼讓您相信大多數客戶將在未來三年內從您所說的 Inseyets 升級。其次，我們如何看待隨著客戶遷移您可能會看到的貨幣化機會和提升？

Okay maybe I'll take it for a start -- sure, I'll take it. Look, our goal is to upgrade the vast majority of our installed base to Inseyets over the next three years. And 2024 goal, I would say, to upgrade more than 10% of our installed base to Inseyets. I must say that I mentioned that by the way, during my speech earlier, that we launched it actually for the first time in this quarter in full. And I have to say, and I'm glad to say, that the interest in Inseyets is high with very favorable feedback from early adopters.

好吧，也許我會先接受──當然，我會接受。看，我們的目標是在未來三年內將絕大多數安裝基礎升級到 Inseyets。我想說，到 2024 年，我們的目標是將超過 10% 的安裝基礎升級到 Inseyets。我必須說，順便說一句，在我之前的演講中，我們實際上是在本季度首次全面推出它。我必須說，而且我很高興地說，人們對 Inseyets 的興趣很高，早期採用者給出了非常有利的回饋。

And this is by the way, while we haven't announced any plans to sunset the legacy digital forensic solutions, maybe UFED or the Premium. But it is obviously reasonable to expect that on a timely manner, where we will sunset, it will basically accelerate the process. The Inseyets maybe to deliver considerable more value than the legacy offering. And the higher value obviously enable us, I would say, command and enable us higher price tag that is approximately 20% to 25% higher than the comparable legacy solutions. And we expect that the upgrading, the vast majority of the installed base of installs will be completed within the next three years.

順便說一句，雖然我們還沒有宣布任何淘汰傳統數位鑑識解決方案（可能是 UFED 或 Premium）的計畫。但顯然可以合理地預期，我們將及時日落，它將基本上加速這一進程。Inseyets 可能會比傳統產品提供更多的價值。我想說，更高的價值顯然使我們能夠獲得更高的價格標籤，比同類傳統解決方案高出約 20% 至 25%。我們預計絕大多數安裝基礎的升級將在未來三年內完成。

Maybe last word, there is also the enterprise, the private sector. And for the private sector, we also see good traction as our next-generation solution to add the complex data collection requirements for the private sector customers and obviously, for the service providers. So I'll stop here. Dana, I don't know if you want to add anything?

也許最後一句話，還有企業、私部門。對於私營部門來說，我們也看到了作為下一代解決方案的良好吸引力，該解決方案為私營部門客戶以及服務提供者增加了複雜的資料收集要求。所以我就停在這裡。達納，我不知道你是否想補充什麼？

No, I think you fully covered the question.

不，我認為你完全涵蓋了這個問題。

Is it?

是嗎？

Thank you though, that was extremely helpful. And just one follow-up for me. Just on kind of some of the go-to-market changes that you're making and kind of broadening the coverage in the US and EMEA. How should we think about the payback period on some of these investments, given there's -- there are long sales cycles here. And then could there be any disruption as we think about just as you optimize sales operation, customer experience, et cetera?

不過還是謝謝你，這非常有幫助。這只是我的一個後續行動。只是您正在做出的一些進入市場的改變以及擴大在美國和歐洲、中東和非洲的覆蓋範圍。鑑於銷售週期很長，我們應該如何考慮其中一些投資的投資回收期。那麼，當我們優化銷售營運、客戶體驗等時，是否會出現任何中斷？

Maybe I'll start. Actually, we have a very solid model on return on investment of, say, introducing a new quota carrier. So we have a clear internal KPI that we take into consideration when we decide on increasing our quota carrier teams. I would say that a reasonable onboarding period for a quota carrier until we see a high level of return investment is around six months, since the sales maybe shorter. So even with the longer sales cycles, we are seeing return investments in a manner of two to three quarters with our quota carriers. We did mention that we are reallocating OpEx to support the increased quota carriers, Americas, EMEA mainly, but also in APAC. But it is also from other activities that we are doing, and we can actually do it by introducing efficiencies into our systems, processes, compliance, integration, and so forth. So we do not see or expect any, I would say, shortfall on our ability to support the increased business.

也許我會開始。實際上，我們有一個非常可靠的投資回報模型，例如引入新的配額承運人。因此，當我們決定增加配額承運商團隊時，我們會考慮一個明確的內部關鍵績效指標。我想說，在我們看到高水準的投資回報之前，配額承運人的合理入職期約為六個月，因為銷售可能會更短。因此，即使銷售週期較長，我們的配額業者也能在兩到三個季度內獲得投資回報。我們確實提到，我們正在重新分配營運支出，以支援增加的配額營運商，主要是美洲、歐洲、中東和非洲，但也包括亞太地區。但它也來自我們正在做的其他活動，我們實際上可以透過將效率引入我們的系統、流程、合規性、整合等來做到這一點。因此，我認為，我們沒有看到或預期我們支持業務成長的能力會出現任何缺陷。

Jonathan Ho, William Blair.

喬納森·何，威廉·布萊爾。

Hi, good morning and congrats on the strong quarter. I just wanted to understand, just given your strong performance to start the year, why not raise the guidance for the full year? Just trying to understand if there's any deals that came in earlier than anticipated or if there was any movement between the quarters?

你好，早安，恭喜季度表現強勁。我只是想了解，鑑於你們年初的強勁表現，為什麼不提高全年指導？只是想了解是否有任何交易早於預期，或者季度之間是否有任何變化？

So, first of all, we started the year by saying that we will start providing quarterly guidance. And this was to enhance our transparency and the ability for the investors and the analysts to have better insight on our plans and our performance. And I'm glad to say that we've done it last quarter. I mean, we're doing it this quarter in a very constant manner. We are off to a solid start, but we have considerably more work to do ahead of us, as Yossi mentioned in his prepared comments. And we believe it's a little bit premature to start changing our outlook at this stage of the year, although we are fairly confident with our guidance and our ability to execute.

因此，首先，我們在今年伊始表示，我們將開始提供季度指導。這是為了提高我們的透明度以及投資者和分析師更好地了解我們的計劃和績效的能力。我很高興地說我們上個季度已經做到了這一點。我的意思是，我們本季將以非常穩定的方式這樣做。我們已經有了一個良好的開端，但正如 Yossi 在他準備好的評論中提到的那樣，我們還有更多的工作要做。我們認為，在今年這個階段開始改變我們的前景還為時過早，儘管我們對我們的指導和執行能力相當有信心。

Mike Cikos, Needham.

麥克·西科斯，尼達姆。

Hey, thanks for taking the questions guys, and I apologize for any background noise. I wanted to come back to Yossi's prepared remarks. And I think one of my colleagues had asked about Inseyets and its conversion process or upgrade cycle that we're on the cusp of. Can you further elaborate on how Q1 played out with respect to how those conversion rates trended versus your internal plan? As well as I know it's probably early here, but are you guys actually seeing that ASP uplift? I know we're talking about 20% to 25% is what we're expecting but is that starting to bear out now that we have a full quarter under our belt here?

嘿，感謝大家提出問題，對於任何背景噪音，我深表歉意。我想回到約西準備好的發言。我想我的一位同事曾經詢問過 Inseyets 及其轉換過程或我們正處於風口浪尖的升級週期。您能否進一步詳細說明第一季的轉換率趨勢與您的內部計畫的比較？就我所知，現在可能還為時過早，但你們真的看到了 ASP 的提升嗎？我知道我們正在談論 20% 到 25% 是我們的預期，但現在我們已經掌握了整整一個季​​度的時間，這是否開始證實這一點？

Well, I would say the following. As I said, I look at it long-term and I'll get to 2024 in a second. As I said, we want to -- in a perspective of three years, to upgrade the vast majority of the installed base. And clearly, there are some factors that can influence that. For example, one of them, the exact percentage of anticipated conversion can depend on the timing of already existing multiyear subscription and obviously certain levels of churn.

嗯，我想說以下幾點。正如我所說，我會長遠考慮，很快就會到 2024 年。正如我所說，我們希望在三年內升級絕大多數已安裝的基礎。顯然，有一些因素會影響這一點。例如，其中之一，預期轉換的確切百分比可能取決於現有的多年訂閱的時間以及顯然特定的流失程度。

In Q1 2024, I think you were asking about that, there was good initial progress. We are very satisfied to where we stand. I would say that -- and I think I mentioned that we are expecting an upgrade of more than 10%, so 10%-plus basis target, I would say, based on budget cycles. Many customers will build this into their 2025 and into their 2026 budget. And clearly, obviously, that has been factored to avoid any misunderstanding in our financial expectations. And we expect to see an upgrade activity build, I would say, during H2 of this year and basically to build the momentum for 2025.

我認為您在 2024 年第一季問過這個問題，初步取得了良好的進展。我們對目前的情況非常滿意。我想說的是——我想我提到我們預計升級幅度將超過 10%，所以我想說的是，基於預算週期，基礎目標將增加 10% 以上。許多客戶會將其納入 2025 年和 2026 年預算中。顯然，這一點已被考慮在內，以避免對我們的財務預期產生任何誤解。我想說，我們預計在今年下半年看到升級活動，基本上是為 2025 年建立勢頭。

I would say that from the RPC, we are seeing high-teens increase in price, which is a great success considering the fact that those early adopters did not included this increase in their budget. So their ability to introduce it in the first year and not wait for it for the second and third year, we find it very, very much encouraging.

我想說的是，從 RPC 中，我們看到了價格的高點上漲，考慮到那些早期採用者沒有將這種上漲納入他們的預算，這是一個巨大的成功。因此，他們能夠在第一年引入它，而不是等到第二年和第三年，我們發現這非常非常令人鼓舞。

Eric Martinuzzi, Lake Street.

埃里克·馬丁努齊，湖街。

Yeah. You talked about gross margin range of 82% to 84%, yet you had the 85.7% non-GAAP gross margin in Q1. Was there anything to call out in Q1 that goes away, so to speak, in forward quarters?

是的。您談到毛利率範圍為 82% 至 84%，但第一季的非 GAAP 毛利率為 85.7%。可以說，第一季有什麼值得指出的事情在前幾季就消失了嗎？

Yeah, I think if you look at our gross margins related to subscription, that we provide in the additional financial deck, it's around 7.5% of cost to subscription. With the further introduction of a cloud-based and SaaS offering, we expect our costs around subscription to increase over time, especially around hosting and cloud operation. And further, the more we will of the installed base of Inseyets will be transitioned to -- from UFED to Inseyets, we will see a little bit more of also hardware sales to come with very marginal gross profit. As such, this is why on the full-year basis, we are talking about 82% to 84%.

是的，我認為如果你看看我們在附加財務報表中提供的與訂閱相關的毛利率，你會發現它大約是訂閱成本的 7.5%。隨著基於雲端的服務和 SaaS 產品的進一步推出，我們預計訂閱成本將隨著時間的推移而增加，尤其是託管和雲端營運方面。此外，我們越願意將 Inseyets 的安裝基礎從 UFED 轉移到 Inseyets，我們就會看到更多的硬體銷售會帶來非常邊際的毛利。因此，這就是為什麼在全年基礎上，我們談論的是 82% 至 84%。

Brian Essex, JPMorgan.

布萊恩‧艾塞克斯，摩根大通。

Hey, good morning and thank you for taking the question. Maybe just a follow-up on Shaul's FedRAMP question. Would like to know how that's progressing so far? How long you think it will take? And do you think you'd be able to complete the process fast enough to benefit from the 3Q federal spending cycle this year? Or is that a longer-term issue more to benefit growth in the following years?

嘿，早上好，謝謝你提出問題。也許只是 Shaul 的 FedRAMP 問題的後續。想知道到目前為止進展如何嗎？您認為需要多長時間？您認為您是否能夠足夠快地完成該流程，以便從今年第三季的聯邦支出週期中受益？或者這是一個更長期的問題，更有利於未來幾年的成長？

I would say that we expect, I would say, to finish the process of that initiative in the first half of 2025 with audit to be ready by end of 2024. That means that we will be able the way we -- and I have to say, that we are standing very well right now. We published about the process that we do with Coalfire in order to build the site and the testing and the applicative part. And I can also say that we have a sponsor and even more than one as part of the process. Meaning, that if all goes well, audit end of 2024, it means that we can embed that into discussions with customers about business in 2025 and finishing the process in the first half of 2025.

我想說，我們預計在 2025 年上半年完成計畫的進程，並在 2024 年底前完成審計。這意味著我們將能夠以我們現在的方式——我不得不說，我們站得很好。我們發布了我們使用 Coalfire 建立網站、測試和應用程式部分的過程。我還可以說，作為這個過程的一部分，我們有一位贊助商，甚至不只一位。這意味著，如果一切順利，2024年底進行審核，這意味著我們可以將其嵌入到與客戶討論2025年的業務中，並在2025年上半年完成流程。

Great. Super helpful. And maybe just a follow-up. Yossi, in your prepared remarks, you've talked about expanding exposure to the private sector and particularly, you called out, I believe a Fortune 200 waste management provider, replacing incumbent solutions there. Maybe a little -- could you offer a little color in terms of what you replaced and how applicable this will be to other customers within the private sector?

偉大的。超有幫助。也許只是後續行動。Yossi，在您準備好的演講中，您談到了擴大對私營部門的接觸，特別是您指出，我相信財富 200 強廢物管理提供者正在取代那裡的現有解決方案。也許有一點——您能否提供一些關於您所更換的內容以及這對私營部門內其他客戶的適用性的信息？

Absolutely. First of all, maybe as a generic statement, private sector revenue and ARR performed, I would say, reasonably well in the beginning of the year. By the way, same as it was last year and over the past six months. And I mentioned one leadership position, we actually on an upgraded two positions, Q4 '23, a new sales leader as part of the CRO organization and the new Head of Enterprise Solutions in actually the beginning of Q2 2024. So I have to say that we are optimistic that we will achieve our targets for the private sector revenue and ARR for 2024.

絕對地。首先，也許作為一般性陳述，我想說，今年年初私部門的收入和 ARR 表現相當不錯。順便說一句，與去年和過去六個月的情況相同。我提到了一個領導職位，我們實際上升級了兩個職位，即 23 年第 4 季度，作為 CRO 組織一部分的新銷售領導者和實際上在 2024 年第二季度初擔任的新企業解決方案主管。因此，我不得不說，我們對實現 2024 年私部門收入和 ARR 的目標感到樂觀。

And maybe on top of that, the focus here and you were asking about the Fortune 250, that customer that I mentioned is part of the Fortune 250. We are clearly targeting to blue chip enterprises and large and mid-sized service providers. We are targeting to mainly to litigious industries where the element of e-discovery and internal corporate investigations is critical and meaningful. So that that's part of that effort. Again, major focus is to be what we are world champion in advanced and remote advanced collection. On top of that, I'm glad to say that recently, we also executed a strategic review of that entire segment with some clear vectors of progress into the near and midterm future that makes us also more confident. So I hope I gave enough view on that.

也許最重要的是，這裡的焦點是你問的是財富 250 強，我提到的那個客戶是財富 250 強的一部分。我們的目標明確是藍籌企業和大中型服務提供者。我們的目標主要是訴訟行業，在這些行業中，電子取證和內部公司調查至關重要且有意義。這就是這項努力的一部分。同樣，主要重點是成為我們在高級和遠程高級收集方面的世界冠軍。最重要的是，我很高興地說，最近我們也對整個細分市場進行了策略審查，並為近期和中期的未來提供了一些明確的進展方向，這也讓我們更有信心。所以我希望我對此給出了足夠的看法。

Jeff Van Rhee, Craig Hallum.

傑夫·範·瑞，克雷格·哈勒姆。

Great thanks for taking my questions. Yossi, just along the levels of kind of the high-level outlook in the second half embedded in the guide, how has your macro thinking evolved in the last 90 to 180 days?

非常感謝您回答我的問題。Yossi，正如指南中所包含的下半年的高層展望一樣，您的宏觀思維在過去 90 到 180 天內是如何演變的？

Generally about the, I would say, the macro environment, so the market?

一般來說，我想說的是宏觀環境，那麼市場呢？

Yes.

是的。

Look, I'm glad to say that -- I'll split it. Obviously, the major focus is related to the public sector. And over there, I would say that everything that we had anticipated in terms of factors and drivers remain the same. The market is healthy. The drivers that we spoke, which are pushing our technology in the context of disruptive technology is there and the spending of our customers are anticipated to stay the way they are with even additional possibility of upside.

聽著，我很高興這麼說——我會把它分開。顯然，主要焦點與公共部門有關。在那裡，我想說的是，我們在因素和驅動因素方面所預期的一切都保持不變。市場健康。我們所說的在顛覆性技術背景下推動我們的技術的驅動因素就在那裡，我們的客戶的支出預計將保持現狀，甚至還有額外的上升空間。

That statement is valid, I would say, both for the state and local government and for the federal. In that context, by the way, maybe worth emphasizing that and talking about spending, we need to remember that in that relatively healthy environment, the spending on Cellebrite at the moment is really fraction of what those customer spend. So we are pretty much, I would say, a secure ground to believe that what we are anticipating to develop or to execute will be according to what we plan. I hope that helps.

我想說，這說法對州政府、地方政府以及聯邦政府都是有效的。順便說一句，在這種情況下，也許值得強調的是，在談論支出時，我們需要記住，在相對健康的環境中，目前在 Cellebrite 上的支出實際上只是這些客戶支出的一小部分。因此，我想說，我們幾乎有一個可靠的基礎，可以相信我們預期開發或執行的內容將按照我們的計劃進行。我希望這有幫助。

It does. Understood. And if I could, one other question on the new logo front, understanding the opportunity to just go into the base and upsell. But looking at the new logos, are there any lessons to be learned there in terms of the effectiveness of the C2C platform or Inseyets, in terms of higher win rates, broader adoption at initial purchase, any observations there?

確實如此。明白了。如果可以的話，我想問一下關於新徽標的另一個問題，即了解進入基礎和追加銷售的機會。但看看新標識，在 C2C 平台或 Inseyets 的有效性、更高的獲勝率、首次購買時更廣泛的採用方面是否有任何值得吸取的教訓，有什麼觀察結果嗎？

As I said to the -- I would like basically to split my answer. The element we have in the public sector, 5,300 agencies. Within those 5,300 agencies, there is a large amount of large, what we call strategic, and mid high prime accounts. And over there, our -- and I mentioned that in my opening, there are many sub-logos/new buying centers, untapped buying centers, untapped professional centers within that logo.

正如我對 - 我基本上想分開我的答案。我們在公共部門擁有 5,300 個機構。在這 5,300 個代理商中，有大量的大型（我們稱之為策略性）和中高端優質客戶。在那裡，我們的——我在開場白中提到，該標誌中有許多子標誌/新的購買中心、未開發的購買中心、未開發的專業中心。

So if I go back right now to the C2C. One, good news early stage. Second, the ability, basically while streamlining it and while bringing more value between the three flagships, the Inseyets collect and review the access on the front end, the Pathfinder AI-based analytics on the backend, and the bridge with evidence management and case management and the streamline between them, and will enable us more and more to penetrate in more sub logos/profit centers/buying centers.

那麼，如果我現在回到 C2C。一、前期好消息。其次，能力，基本上在簡化它並在三個旗艦之間帶來更多價值的同時，Inseyets 收集和審查前端的訪問，後端基於探路者人工智能的分析，以及證據管理和案件管理的橋樑以及它們之間的精簡，將使我們越來越滲透到更多的子標誌/利潤中心/購買中心。

The good news, we are in an early stage, but I'm glad to see, I would say, that if I look at our pipe, the amount or the cases especially by the large and midsized customers that we see more than one or two solutions based on that combination is increasing dramatically, especially by the way on the state and local government side.

好消息是，我們正處於早期階段，但我很高興看到，我想說，如果我看看我們的管道，特別是大中型客戶的數量或案例，我們看到不止一個或基於這種組合的兩種解決方案正在急劇增加，特別是在州和地方政府方面。

Got it. Very helpful. Thank you.

知道了。很有幫助。謝謝。

Louie DiPalma, William Blair.

路易·迪帕爾瑪，威廉·布萊爾。

Yossi, Dana, and Andy, good morning.

約西、達納和安迪，早安。

Good morning.

早安.

It seems price is expected to be a significant driver of growth over the next three to five years? And are there three primary upgrades taking place for the installed base of 32,000 licenses? First, is there the Inseyets upgrade and then the C2C upgrade for the end-to-end ecosystem? And then third, the on-premise upgrade to the cloud? And do all three of these upgrades involve higher pricing for the increased value that you're providing?

看來價格預計將成為未來三到五年成長的重要推手？是否針對 32,000 個許可證的安裝基礎進行了三次主要升級？首先，是否有Inseyets升級，然後是端對端生態的C2C升級？第三，本地升級到雲端？這三項升級是否都涉及為您提供的增加價值提供更高的定價？

I think that if we look at the long-term model, Louie, the main driver of our expansion in the coming years will be really linked to the increased digital data that our customer needs to process. So either you can call it a price increase because the Inseyets now can do double the work and much more efficiency -- with much more efficiency -- so actually, we are setting more capacity with the same number of licenses in a reasonably higher price. Or you can actually look at the expansion that we are looking to do within the investigative units with Pathfinder and the Guardian that I think we discussed in the past, we believe that this market can grow 35% to 50% year over year. So these are the main two drivers. The ongoing price increase of the same offering year-over-year, I would say, baked into our model is around 4%. So this is not the main issue. And Inseyets is not a price increase. It's a different offering with a different value and a different tag price in our point of view. I hope this was helpful.

我認為，如果我們著眼於長期模型，Louie，我們未來幾年擴張的主要驅動力將真正與我們的客戶需要處理的數位資料的增加聯繫在一起。因此，您也可以將其稱為價格上漲，因為Inseyets 現在可以完成雙倍的工作，並且效率更高——效率更高——所以實際上，我們正​​在以相當高的價格以相同數量的許可證設定更多的容量。或者你實際上可以看看我們在探路者和衛報的調查單位中尋求的擴張，我認為我們過去討論過，我們相信這個市場可以同比增長 35% 到 50%。這是主要的兩個驅動因素。我想說，在我們的模型中，相同產品的持續價格年增約 4%。所以這不是主要問題。而且Inseyets並不是漲價。在我們看來，這是一種不同的產品，具有不同的價值和不同的標籤價格。我希望這可以幫助你。

Great. Yes. And you reached a 20% EBITDA margin in the first quarter, which is typically, Dana, your lowest margin quarter. Is this 20% margin sustainable going forward even with the increased headcount and investments? And should margins be like, smoother on a quarter-to-quarter basis going forward than they have been in the past?

偉大的。是的。第一季您的 EBITDA 利潤率達到了 20%，Dana，這通常是您利潤率最低的季度。即使員工數量和投資增加，20% 的利潤率能否持續下去？未來每季的利潤率是否應該比過去更加穩定？

We believe that throughout the years, you will see smoother margins quarter-to-quarter because with the transition to subscription, we'll see also smoother revenue increase, which will be aligned with the marginal increase in OpEx quarter over quarter. Our model speaks about 20%-plus EBITDA in the midterm. We are very, very satisfied with Q1, but Q1 was not fully representing our OpEx plans for the full year in a nutshell.

我們相信，多年來，您將看到逐季度更平穩的利潤率，因為隨著向訂閱的過渡，我們還將看到更平穩的收入成長，這將與營運支出逐季度的邊際成長保持一致。我們的模型顯示中期 EBITDA 約為 20% 以上。我們對第一季非常非常滿意，但簡而言之，第一季並不能完全代表我們全年的營運支出計畫。

That makes sense. Thanks, everyone.

這就說得通了。感謝大家。

(Operator Instructions) Tomer Zilberman, Bank of America.

（操作員指示）Tomer Zilberman，美國銀行。

Hey, guys. Maybe just one quick one to touch up on an earlier question. Can you just talk about how much visibility you have into demand for the remainder of the year? Less on expectations to the guidance, but how much visibility can you see?

大家好。也許只是簡單地回答一下之前的問題。您能談談您對今年剩餘時間的需求有多少了解嗎？對指導的期望較少，但您能看到多少可見度？

So when we look in the opportunity management process that we have in the company, we have a great visibility into the coming two quarters, so Q2 and Q3. And I would say, which make us very confident in our ability to deliver the full year definitely in a nutshell.

因此，當我們查看公司的機會管理流程時，我們對未來兩個季度（即第二季和第三季）有很大的了解。我想說，簡而言之，這讓我們對全年交付的能力非常有信心。

Got it. Thank you.

知道了。謝謝。

Mike Cikos, Needham.

麥克·西科斯，尼達姆。

Hey, thanks for getting me back on here, guys. I did just want to follow up, I know that how you expect an acceleration in upgrade activity in the back half of this year into calendar '25, which makes sense intuitively as customers are building in additional budget. But I just wanted to get a better sense. When we think about the guidance that you have constructed today, is that acceleration embedded in the guide or is that seen as more of a potential upside catalyst?

嘿，謝謝你們讓我回到這裡，夥計們。我只是想跟進，我知道您預計今年下半年到 25 日曆年的升級活動會加速，這在直覺上是有意義的，因為客戶正在增加額外的預算。但我只是想獲得更好的感覺。當我們思考您今天建造的指導時，指導中是否包含了這種加速，或者這更多地被視為潛在的上行催化劑？

The 10%-plus is embedded in our plans for the year. The budget for next year, while will see the opportunity start to build this year, most of them will be realized in '25.

這 10% 以上已納入我們今年的計劃中。明年的預算雖然會看到今年開始建設的機會，但其中大部分將在'25年實現。

Okay. And with the -- I know Marcus, your new Chief Revenue Officer did a great job at the Investor Day in March. But just imagine that he's been charged with helping in some way accelerate (technical difficulty) ability to build that budget, right, to help your conversions. Is that where we should think about driving towards when you look at the hires and the go-to-market effort around whether it's presales or instituting some of these different sales operations that you guys have? Is that a fair characterization? Or is there anything else that we're missing there?

好的。我知道你們的新任首席營收長馬庫斯在三月的投資者日表現出色。但想像一下，他負責以某種方式幫助加速（技術難度）建立預算的能力，對吧，以幫助您的轉換。當你看看招募和市場推廣工作（無論是預售還是建立你們擁有的一些不同的銷售業務）時，我們應該考慮朝著這個方向努力嗎？這是一個公平的描述嗎？或者還有什麼我們還遺漏的嗎？

Mike, I'm not sure that I understand the question, but at least I'll try. First of all, I would agree completely with the statement that Marcus has done and is doing and will do a great job. But putting that aside, the focus is on -- functionality wise, the focus is on a strong mix between quota carriers and post-sale customer success, which are the two major direction and vectors where we're going to invest the money. And internally, there is a potential for acceleration.

麥克，我不確定我是否理解這個問題，但至少我會嘗試。首先，我完全同意馬庫斯已經做過、正在做並且將會做得很好的說法。但拋開這些不談，重點是——功能方面，重點是配額承運人和售後客戶成功之間的強有力的結合，這是我們將投資資金的兩個主要方向和載體。在內部，有加速的潛力。

I guess, thanks for that. Sorry to be mixed up on the question here. I guess, is there a way for Cellebrite to help customers accelerate their internal process, to help get that budget sooner for this upgrade? Right, are you able to do anything on that front to help them get additional funding for Cellebrite? I'm hoping that question makes sense.

我想，謝謝你。很抱歉在這裡對這個問題感到困惑。我想，Cellebrite 有沒有辦法幫助客戶加快內部流程，幫助更快獲得這次升級的預算？是的，您能在這方面做些什麼來幫助他們為 Cellebrite 獲得額外的資金嗎？我希望這個問題有道理。

Okay. It makes sense. And there are possibilities in that direction. There are cases that there are special grants, which are being created by customers. End of last year, by the way, we hired for the first-time people in the area of grant management, which are doing exactly that. And that enables us to support them to create those extra grants and create additional budget opportunities.

好的。這說得通。並且在這個方向上存在著可能性。在某些情況下，客戶會設立特別補助金。順便說一句，去年年底，我們首次聘請了贈款管理領域的人員，而他們正是這樣做的。這使我們能夠支持他們提供額外贈款並創造額外的預算機會。

This concludes the question-and-answer portion of today's call. I would now like to turn the floor over to Cellebrite CEO, Yossi Carmil, for additional or closing remarks.

今天電話會議的問答部分到此結束。現在我想請 Cellebrite 執行長 Yossi Carmil 發表補充或結束語。

I would like to thank you again all for participating. Thank you also for the interest and the trust in Cellebrite. And above all, I would like to thank my colleagues, the Cellebrite employees for performing for us for Q1 and well done and good luck to us for the rest of the year. Thank you.

我想再次感謝大家的參與。也感謝您對 Cellebrite 的興趣與信任。最重要的是，我要感謝我的同事、Cellebrite 員工在第一季為我們表演，做得很好，祝我們在今年剩下的時間裡好運。謝謝。

Thank you. This concludes today's Cellebrite first-quarter 2024 financial results conference call. Please disconnect your line at this time and have a wonderful day.

謝謝。今天的 Cellebrite 2024 年第一季財務業績電話會議到此結束。請此時斷開您的線路，祝您有美好的一天。