Cellebrite DI Ltd. (NASDAQ:CLBT) Q3 2022 Earnings Conference Call November 17, 2022 8:30 AM ET

Company Participants

Sabrina Mathews - IR

Yossi Carmil - CEO

Dana Gerner - CFO

Conference Call Participants

Jonathan Ho - William Blair

Tomer Zilberman - Bank of America

Mike Cikos - Needham

Louie DiPalma - William Blair

Operator

Good day and thank you for standing by. Welcome to the Cellebrite Q3 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Sabrina Mathews, Investor Relations. Please go ahead.

Sabrina Mathews

Thank you. Welcome to Cellebrite's third quarter 2022 financial results earnings call. Joining me today are Yossi Carmil, Cellebrite's CEO; and Dana Gerner, Cellebrite's CFO.

This call is being recorded and a replay of this recording as well as the presentation that accompany this call will be made available on our website shortly after the call.

A copy of today's press release and financial statements, including GAAP to non-GAAP reconciliations, as well as supplemental financial information for the third quarter are available on the Investor Relations website at investors.cellebrite.com.

Statements made during this call that are not statements of historical facts constitute forward-looking statements. 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 forecast. 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 29, 2022, as amended on April 14, 2022. The Company does not undertake to update any forward-looking statements to reflect future events or circumstances.

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

Yossi Carmil

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

I'm pleased to share that we had a solid third quarter and in particular, I'm happy with the results we delivered in the U.S. federal sector, which I will talk more about later.

In Q3, our ARR grew 35% year-on-year to reach US$232 million. Total revenue in the third quarter was up 9% to reach $71.7 million. Additionally, our net retention rate for the quarter came in at 129%. As this represents the 15th consecutive quarter that we've delivered NRR of greater than 120%, we are proud of maintaining best-in-class retention rates, proving that our go-to-market strategy is bearing fruits and our existing customers continue to spend on our technology resulting in 25 large deals closed in the quarter.