CLBTW - Greenhaven Road Capital - Cellebrite: Own A Growing Cash Flowing Below Market Multiple Company

2024-05-01 08:05:00 ET

Summary

• Cellebrite is another technology company, making its results also not inevitable, but I do like their prospects.
• Despite this mission-critical offering, Cellebrite typically represents less than 1/10 of 1% of their customers’ budgets.
• If we wait, we own a growing, cash flowing, below market multiple, enduring secular tailwinds company entering a new product cycle which will last years.

The following segment was excerpted from this fund letter.

Cellebrite ( CLBT )

Cellebrite is another technology company, making its results also not inevitable, but I do like their prospects The company says their “end-to-end platform helps investigative teams in both public and private sectors close cases faster, smarter, and more defensively than ever before.” As we have discussed in recent letters, Cellebrite benefits from two trends that seem unlikely to dissipate. The first is that digital evidence is continuing to grow in forms and complexity including text, photo, voicemail, video, geolocation, contacts, emails, Snapchats, Instagram, and crypto. The second trend is that law enforcement agencies are undermanned with technology-proficient employees such that third-party technology tools offer their most realistic path to collect, analyze, and handle the digital evidence. Investigators cannot just throw bodies at the growing mountain of digital evidence; they need tools....

For further details see: