Filed Pursuant to Rule 424(b)(3)
Registration No. 333-259826
PROSPECTUS SUPPLEMENT NO. 1
(to prospectus dated October 6, 2021)
CELLEBRITE DI LTD.
171,729,210 Ordinary Shares
9,666,667 Warrants to Purchase Ordinary Shares
29,666,667 Ordinary Shares Underlying Warrants
This prospectus supplement amends and supplements the prospectus dated October 6, 2021 (the “Prospectus”) which forms a part of our Registration Statement on Form F-1, as amended and supplemented (Registration Statement No. 333-259826). This prospectus supplement is being filed to update and supplement the information included in the Prospectus with the GAAP financial statements tables contained in our report of foreign private issuer on Form 6-K, furnished to the Securities and Exchange Commission (the “SEC”) on November 10, 2021 (the “Form 6-K”). Such tables from the Form 6-K are attached to this prospectus supplement.
This prospectus supplement updates and supplements the information in the Prospectus and is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction with the Prospectus and if there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.
Our ordinary shares, with par value of NIS 0.00001 per share (“Ordinary Shares”), and warrants to purchase Ordinary Shares (“Warrants”) are traded on The Nasdaq Global Market (“Nasdaq”) under the symbol “CLBT” and “CLBTW,” respectively. The last reported sale price of the Ordinary Shares on November 9, 2021 was $10.20 per share, and the last reported sale price of the Warrants on November 9, 2021 was $2.92 per warrant, as reported on Nasdaq.
You should read the Prospectus and any prospectus supplement or amendment carefully before you invest in our securities. Investing in the Company’s securities involves risks. See “Risk Factors” beginning on page 12 of the Prospectus.
Neither the SEC nor any state securities commission has approved or disapproved of the securities to be issued under the Prospectus or passed upon the adequacy or accuracy of the Prospectus or this prospectus supplement. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is November 10, 2021.
Cellebrite DI Ltd.
Third Quarter 2021 Results Summary
(U.S Dollars in thousands)
| For the three months ended | For the nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenue | 65,887 | 53,241 | 178,338 | 137,745 | ||||||||||||
| Gross profit | 53,934 | 43,740 | 148,117 | 110,386 | ||||||||||||
| Gross margin | 81.9 | % | 82.2 | % | 83.1 | % | 80.1 | % | ||||||||
| Operating income (loss) | (3,092 | ) | 8,983 | 9,516 | 4,150 | |||||||||||
| Operating margin | -4.7 | % | 16.9 | % | 5.3 | % | 3.0 | % | ||||||||
| Cash flow from operations | (8,047 | ) | 16,636 | 6,260 | 34,396 | |||||||||||
Cellebrite DI Ltd.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
| September 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 109,886 | $ | 128,709 | ||||
| Restricted cash | - | 5,137 | ||||||
| Short-term deposits | 61,801 | 108,928 | ||||||
| Trade receivables (net of allowance for doubtful accounts of $589 as of September 30, 2021 and $616 as of December 31, 2020) | 76,215 | 66,324 | ||||||
| Prepaid expenses and other current assets | 14,055 | 7,439 | ||||||
| Contract acquisition costs | 4,563 | 2,979 | ||||||
| Inventories | 4,808 | 4,754 | ||||||
| Total current assets | 271,328 | 324,270 | ||||||
| Non-current assets | ||||||||
| Other non-current assets | 179 | 565 | ||||||
| Deferred tax assets, net | 9,475 | 7,372 | ||||||
| Property and equipment, net | 16,392 | 16,106 | ||||||
| Intangible assets, net | 8,312 | 6,611 | ||||||
| Goodwill | 9,463 | 9,463 | ||||||
| Total non-current assets | 43,821 | 40,117 | ||||||
| Total assets | $ | 315,149 | $ | 364,387 | ||||
| Liabilities, redeemable convertible preferred shares and shareholders’ equity | ||||||||
| Current Liabilities | ||||||||
| Trade payables | $ | 5,756 | $ | 4,727 | ||||
| Other accounts payable and accrued expenses | 51,732 | 49,112 | ||||||
| Deferred revenues | 115,017 | 105,543 | ||||||
| Restricted Sponsor Shares liability | 55,893 | - | ||||||
| Price Adjustment Shares liability | 103,338 | - | ||||||
| Derivative warrant liabilities | 71,984 | - | ||||||
| Total current liabilities | 403,720 | 159,382 | ||||||
| Long-term liabilities | ||||||||
| Liability for employees’ severance benefits | 363 | 366 | ||||||
| Other long-term liabilities | 6,652 | 6,191 | ||||||
| Long-term deferred revenues | 34,398 | 33,439 | ||||||
| Total long-term liabilities | 41,413 | 39,996 | ||||||
| Total liabilities | $ | 445,133 | $ | 199,378 | ||||
| Redeemable convertible preferred shares | - | 101,205 | ||||||
| Shareholders’ equity (deficiency) | ||||||||
| Share capital | *- | *- | ||||||
| Additional paid-in capital | (156,339 | ) | 34,226 | |||||
| Treasury stock, NIS 0.00001 par value; 41,776 ordinary shares | (85 | ) | (85 | ) | ||||
| Accumulated other comprehensive income | (78 | ) | 1,321 | |||||
| Retained earnings | 26,518 | 28,342 | ||||||
| Total shareholders’ equity (deficiency) | (129,984 | ) | 63,804 | |||||
| Total liabilities, redeemable convertible preferred shares and shareholders’ equity (deficiency) | $ | 315,149 | $ | 364,387 | ||||
| * | Less than US$1. |
Cellebrite DI Ltd.
Condensed Consolidated Statements of Income
(U.S Dollars in thousands, except share and per share data)
| For the three months ended | For the nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenue: | ||||||||||||||||
| Subscription services | $ | 30,046 | $ | 25,841 | $ | 88,890 | $ | 72,843 | ||||||||
| Term-license | 21,205 | 9,163 | 44,340 | 18,852 | ||||||||||||
| Perpetual license and other | 6,657 | 11,838 | 24,782 | 30,304 | ||||||||||||
| Professional services | 7,979 | 6,399 | 20,326 | 15,746 | ||||||||||||
| Total revenue | 65,887 | 53,241 | 178,338 | 137,745 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Subscription services | 2,650 | 2,278 | 7,324 | 6,741 | ||||||||||||
| Term-license | 651 | 577 | 1,546 | 936 | ||||||||||||
| Perpetual license and other | 2,282 | 1,930 | 5,158 | 6,470 | ||||||||||||
| Professional services | 6,371 | 4,716 | 16,193 | 13,212 | ||||||||||||
| Total cost of revenue | 11,954 | 9,501 | 30,221 | 27,359 | ||||||||||||
| Gross profit | 53,933 | 43,740 | 148,117 | 110,386 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 16,427 | 12,899 | 46,708 | 39,606 | ||||||||||||
| Sales and marketing | 20,123 | 15,162 | 55,150 | 43,542 | ||||||||||||
| General and administrative* | 20,475 | 6,696 | 36,743 | 23,088 | ||||||||||||
| Total operating expenses | 57,025 | 34,757 | 138,601 | 106,236 | ||||||||||||
| Operating income (loss) | (3,092 | ) | 8,983 | 9,516 | 4,150 | |||||||||||
| Financial income, net | 17,812 | 417 | 18,674 | 1,574 | ||||||||||||
| Income before income tax expense | 14,720 | 9,400 | 28,190 | 5,724 | ||||||||||||
| Income tax expense | 6,581 | 1,279 | 8,665 | 2,897 | ||||||||||||
| Net income | $ | 8,139 | $ | 8,121 | $ | 19,525 | $ | 2,827 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.06 | $ | 0.04 | $ | 0.15 | $ | (0.07 | ) | |||||||
| Diluted | $ | 0.05 | $ | 0.03 | $ | 0.13 | $ | (0.07 | ) | |||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 144,845,163 | 123,378,301 | 131,086,877 | 123,513,879 | ||||||||||||
| Diluted | 163,348,212 | 157,968,025 | 148,164,411 | 123,513,879 | ||||||||||||
| Other comprehensive income: | ||||||||||||||||
| Unrealized gain (loss) on hedging transactions | (174 | ) | (400 | ) | (1,440 | ) | 415 | |||||||||
| Currency translation adjustments | (15 | ) | 56 | 40 | 54 | |||||||||||
| Total other comprehensive income (loss), net of tax | (189 | ) | (344 | ) | (1,400 | ) | 469 | |||||||||
| Total other comprehensive income | $ | 7,950 | $ | 7,777 | $ | 18,125 | $ | 3,296 | ||||||||
| * | Including one-time issuance costs |
Cellebrite DI Ltd.
Condensed Consolidated Statements of Cash Flow
(U.S. Dollars in thousands)
| For the three months ended | For the nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Cash flow from operating activities: | ||||||||||||||||
| Net income | $ | 8,139 | $ | 8,121 | $ | 19,525 | $ | 2,827 | ||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||
| Employees’ stock option compensation and RSU’s | 1,417 | 1,825 | 4,819 | 5,731 | ||||||||||||
| Depreciation and amortization | 2,097 | 1,689 | 5,277 | 4,346 | ||||||||||||
| Deferred income taxes | (1,338 | ) | 378 | (1,907 | ) | 1,301 | ||||||||||
| Revaluation of derivative warrants | 3,539 | - | 3,539 | - | ||||||||||||
| Revaluation of earn out shares | (20,791 | ) | - | (20,791 | ) | - | ||||||||||
| Increase (decrease) in liability for severance benefits, net | 2 | 2 | (1 | ) | 1 | |||||||||||
| Increase in trade receivables | (24,357 | ) | (18,259 | ) | (10,648 | ) | (14,134 | ) | ||||||||
| Increase in deferred revenue | 15,344 | 16,255 | 12,652 | 27,602 | ||||||||||||
| Decrease in other non-current assets | 4,693 | 33 | 385 | 21 | ||||||||||||
| Increase in prepaid expenses and other current assets | (5,687 | ) | (401 | ) | (10,845 | ) | (146 | ) | ||||||||
| Decrease (Increase) in inventories | 36 | 403 | (87 | ) | (593 | ) | ||||||||||
| Increase (decrease) in trade payables | 1,494 | (1,009 | ) | 1,200 | (3,100 | ) | ||||||||||
| Increase in other accounts payable and accrued expenses | 7,249 | 6,852 | 2,679 | 9,793 | ||||||||||||
| Increase in other long-term liabilities | 116 | 747 | 463 | 747 | ||||||||||||
| Net cash provided by (used in) operating activities | (8,047 | ) | 16,636 | 6,260 | 34,396 | |||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Purchases of property and equipment | (1,479 | ) | (1,162 | ) | (4,333 | ) | (4,789 | ) | ||||||||
| Payment related to business combination, net of cash acquired | - | - | - | (15,046 | ) | |||||||||||
| Asset acquisition | - | - | (3,000 | ) | - | |||||||||||
| Short term deposits, net | 18,047 | 55,986 | 47,127 | 31,830 | ||||||||||||
| Net cash provided by investing activities | 16,568 | 54,824 | 39,794 | 11,995 | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Repurchase of common shares | - | - | - | (85 | ) | |||||||||||
| Payment of dividend | (100,000 | ) | - | (100,000 | ) | (10,000 | ) | |||||||||
| Exercise of options to shares | 1,174 | - | 1,361 | - | ||||||||||||
| Proceeds from Recapitalization transaction, net | 29,298 | - | 29,298 | - | ||||||||||||
| Net cash used in financing activities | (69,528 | ) | - | (69,341 | ) | (10,085 | ) | |||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | (61,007 | ) | 71,460 | (23,287 | ) | 36,306 | ||||||||||
| Net effect of Currency Translation on cash and cash equivalents | (500 | ) | 306 | (673 | ) | 169 | ||||||||||
| Cash and cash equivalents and restricted cash at beginning of period | 171,393 | 46,392 | 133,846 | 81,683 | ||||||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 109,886 | $ | 118,158 | $ | 109,886 | $ | 118,158 | ||||||||
| Supplemental cash flow information: | ||||||||||||||||
| Cash paid for taxes | 738 | 699 | 6,399 | 1,332 | ||||||||||||
| Non-cash activities | ||||||||||||||||
| Purchase of property and equipment on suppliers’ credit | (119 | ) | 58 | 65 | 253 | |||||||||||