Cellebrite DI Ltd. Class A Ordinary Shares Fireside chat

Yeah, absolutely. Thank you very much, and good afternoon, good evening, good morning to those of you who are joining. I would like to remind everybody that today's discussion will contain some forward-looking statements that include, but are not limited to, the company's business operations, product roadmaps, and financial performance. 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. Actual results could also differ materially from historical results and/or from forecasts. Some of those 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 3rd, 2026. The company does not undertake to update any forward-looking statements to reflect future events or circumstances. With that said, I will turn the call and the event back over to you, Rudy.

Yeah. Good morning, good afternoon, good evening to everybody, and thanks for hosting us. So yeah, I spent the past month, really a lot of the time was with customers and of course our teams and leadership. As you can imagine, I have also spent a lot of time with many shareholders too. So had lots of meetings with that audience. Some of this is really just a continuation of my first 90 days. Now obviously, I am spending more time with some of the decisions that are really critical for our growth and making sure that we execute the quarter. Stepping back, there is a substantial opportunity for growth here. I still believe, and in fact my conviction is growing as I learn more about our business and our customers.

I think we have a really, really big opportunity to have a platform play and becoming a trusted investigative intelligence platform. I still see the potential of this business growing significantly in the future, and also delivering durable growth. So, solid top-line ARR and continuing to deliver on free cash flows. In terms of key strengths of the business and some initial observations, I think really impressed by all of our teams. We have a deep technical bench in the company, our leadership in digital forensics, and this really comes to life when you go talk to customers. I spent some time in Europe, and meeting some customers here in the U.S., and it's pretty clear that they are reliant on our products and services and really want us to innovate more.

Strong customer base, strong relationships, and that we still have a very strong balance sheet. I think our revolution is really just going to be moving from, today we're a collection of very critical and important products to becoming a trusted investigative intelligence platform. We want to continue to deliver our innovation that we started across AI and cloud. We want to make sure that we deliver on this in the next quarter, and then come back to our shareholders later this year to talk about our FY 2027 plans.

Yeah. A few things to think about the current digital forensics market, right? When you, especially the larger agencies that we have, they are more likely to have a multitude of tools and technology. Typically, they will have other vendors in there. They kind of have to, just given the nature of the work that they're doing. But we've been a primary vendor for mobile phone extraction for well over a decade for lots of our customers. You can see that, right, in terms of this reflects those strengths across access, extraction, and decoding. Each phase of the examination is really important, and we deliver World-class capabilities in each of these domains. Our coverage spans both Android and Apple iOS. But a little bit about the space is it's a little bit of a cat-and-mouse game.

There are times when maybe we have all the capabilities across all of these domains, especially unlocks and extractions. Sometimes our competitors will have. It is always shifting and changing. From a market share perspective, which is what you asked me, we haven't seen anything in our data yet that we have lost any share. Everything that we track, we are the dominant player in the market. That is where we sit and it is still a multi-vendor environment. As of today, which we announced earlier, and this is why we have Chris on the call, we moved our Cellebrite Labs team under his leadership. He has been a domain expert here for a very long time.

He is spending his time and additional investments to make sure that we continue to have all of the capabilities that we need for our customers across both iOS and Android. Maybe, Chris, you can add a little bit of color around some of these capabilities.

Yeah, I think going back to what you said about the testament to our world-class capabilities, Android is extremely fragmented. There are hundreds of different OEMs making phones, and we lead the way with this. We have a phenomenal Android team. Now that I am leading Labs, we are going to continue the investment and expand, adding capabilities on AI side, as well as expanding the team. We ensure that we have the dominance on the Android side and start to push heavily on the iOS side as well.

Yeah, I think we've seen something similar to this AI lifecycle compression a few years ago when fuzzing became very popular. You see this initial number of bugs goes through the roof, and eventually plateaus. But we noticed this compression, and we're using AI on our side. We've just made a heavy investment in hardware and software on the AI side to combat Apple and Google's use of AI. The next six months are going to be very interesting as we see the models evolve, the frontier models just getting better and better. But what we've seen in the last few months is the rate at which new bugs are introduced hasn't gone down. AI hasn't stopped the fundamental problem of bugs in software. So we're seeing the vulnerabilities be patched faster, but we're not actually seeing a reduction in the number of vulnerabilities.