Hello, everyone. My name is Jonathan Ho, and I wanted to thank you for joining us for today's presentation for Cellebrite. I'm the cybersecurity analyst for the firm, and with us today is CEO Yossi Carmil, who's the CEO of Cellebrite. Then we also have the CFO, Dana Gerner, as well in the audience. Before we begin, I am required to inform you that a complete list of research disclosures or conflicts of interest is available at our website at www.williamblair.com. This will be a full presentation session, and so we'll. I'll hand it over to Yossi to go through the presentation, and we may take a question or two at the end. Thank you.
All right, thank you, Jonathan. Thank you, and thank you all for joining us here. I'm Yossi Carmil, as already introduced, CEO, board member, and co-founder of Cellebrite. What I'm gonna do today, I'm gonna give you a little bit of an overview about what we do and who we are, and after that, talk a little bit about customer challenges. What are the challenges that our customers are facing out there? What's the impact on our growth strategy, and what does it drives us to do? And then also some elements about financial review. After that, we're gonna have a breakout session in a different room, so if time will allow, we'll leave time for question, but I believe there will be enough time to deal with it in a breakout session.
So first of all, Cellebrite, the company is offering today the leading platform, end-to-end platform for digital investigations. Customers are 90% public sector, 10% private sector. And if I look at our customers, I do believe that we are solving, probably giving the best solution to 2 of the biggest pain today in law enforcement. One of them is how to access digital witnesses, digital sources, in order to get digital evidence, and the other one is how to manage digital investigation in the best way in the modern era. Please. As we look at the company today, end of Q1, 27% year-over-year growth in ARR. Last 12 months, growth of 23% in revenue.
A very strong position, which I will touch by more than 7,000 agencies, 5,300 in public sector and more than 1,500 in the private sector, as a trusted advisor, as a trusted partner. And based on our brand, strong brand, leading brand, and a leading market position, we are literally helping today law enforcement agencies fight against crime, where our solutions are being used in more than 1 million, almost 2 million investigation cases around the globe. This is a company with a very clear and a very unique mission. I know there are many companies that grow faster than us. There are many companies who are more profitable than us. I think we're in a great position on the financial side, but there are not so many companies who are companies with impact in the world.
Cellebrite is a company with impact, and I see us as, if I may say so, a safeguard. As crime is on the rise and as crime is hitting each one of us or our kids or our families, Cellebrite is a company that basically supports those forces who are fighting against crime. So I see us as some kind of a safeguard with our technology, and I would also say that investing in Cellebrite is investing in public safety. I see the company as a synonym for public safety. Employees joining Cellebrite because of us, customers are sticking to Cellebrite because of that, and investing in public safety, meaning investing in Cellebrite. We are doing that with the delivery of what we call an end-to-end platform, a C2C platform, which I will talk about later on, case to closure.
This is a platform that covers today the entire spectrum, the entire life cycle of a digital investigation in law enforcement and in private, from the collection, the access, the review, the discovery, the collaboration, until an evidence is coming to court. I can say that in that space, the name of the game is productivity. We need to make our customers more productive. I'll touch in a second, the pains of our customers. In that respect, one, we need to deliver evidence or help them deliver evidence, accessible, actionable, and defensible, something that they can stand behind, and make them more productive by enabling them to do investigations faster, smarter, and more efficient. You know, we are in the digital space, okay?
The company is dealing with the digital part of investigation, and people who know the company know that we are the company who's dominating the mobile environment for years by now, as the primary tool for examiners and investigators. The good news is that the way we see the world, digital is expanding and growing, and is gonna continue growing over the next decade, and mobile as well. Unfortunately, so does crime. And that's created digital picture of investigations that put our customers in a situation that are facing few challenges that I would like to cover shortly, and actually, they are listed here. That gap in public safety is because of, one, data volume and data complexity. You can imagine agencies today are facing ongoing amount of digital sources that they need to deal with mobile, cloud, drones, cars, computers, et cetera, et cetera, routers.
There is an amount of data per device, which is growing. Except of that, there are hundreds of applications which needs to be supported, important. And on top of that, it's an encrypted, and it's a locked environment that our customers need to deal with. So that's one pain. The second pain is the fact that our customers are facing an inefficient environment. Investigations are being managed today manually, lots of hardware, DVDs, obviously hurts the chain of custody and disconnect between functions. And if you go to an examiner lab of the police, you will see piles of mobiles. So the backlog is a critical pain here. And on top of that, ethics and accountability.
Our customers are being under pressure to deliver, but they are also under pressure to do it ethical, to do it accountable, deal only with the right data, and a lot of scrutiny is hanging around that part. In that respect, there is obviously a need for a disruptive technology. The good news is that, or let's say the good and the pain, our customers are willing to spend more, and they spend more. This is one issue, but at any point of time, they are constrained with resources, especially on personnel. They need to do more with less, and that put them basically under pressure, and they need a solution. The solution comes with our platform.
Maybe before that, I would say the following: Cellebrite is a company that discovered, I would say, the value chain in public safety already long ago, meaning, and I've mentioned that already, this entire spectrum from collection, review, discovery, and collaboration. And over there, there is a need, basically, or a need to deal, I would say better, an opportunity, an amazing opportunity for the customers and for us. First of all, amazing opportunity for the customers, especially law enforcement, to improve their mode of operation, desperately. On the other hand, it gives us, Cellebrite, the opportunity to expand and bring more value into that chain and expand in a pace which is much better even than the legacy that we used to do or did so far and continue to do in the labs in collect and review.
Then, I'm glad to say that after years, that the company is dominating the environment of the digital forensic units by offering collect and review solution. We are finally in a situation that we are coming and offering a platform, an increasingly end-to-end platform, streamlined between the different parts. And we are doing that by connecting front-end access in the digital forensic units, connecting that to back-end investigative analytics with evidence management and case management. And we are doing that, if you see on the left side, for the DFU, standalone end-to-end. We are doing that on the right for the investigative units, end-to-end. And we are using the evidence management, our Guardian, to bridge between DFU and IU, between digital forensic units and investigative units. This is a clear sign because we are evolving as a company.
We used to be a company that was a point product company, and today you can look at us as an strategic platform vendor, and this is one. And I would say that the C2C, our case to closure platform, basically reflect our vision of how to close that gap in public safety. We are doing that for the private sector and the public sector. Then, maybe it's about time shortly to talk about the components. There are three components, again, which are not standalone anymore, streamlined and connected with each other. On the left, you see the Inseyets. The Inseyets or the Cellebrite Inseyets is the family of the products who made us great so far. These are our digital forensic solution software.
And over there, it offers the customer or the law enforcement to finish an examination faster than any other tool in the industry. Our Guardian is evidence management, case management, and we see the Guardian as an element that, one, deals with taking the data from the Inseyets and then sharing it and reviewing it with other personas within the organization, may be investigators, may be analysts, may be prosecution, all the way of the evidence to court. And then there is the Pathfinder, our investigative analytics, AI-driven. Cellebrite is investing a lot in AI. By the way, machine learning started already in 2016 in many aspects that I'm inviting, obviously, questions later on. But here, AI-driven solution, which is able to take or basically bring our customers fast to the golden evidence by managing a large amount of structured and unstructured data.
Then you can expect, if you see on the left side, the digital witnesses, these are the digital sources, and you can expect from Cellebrite, who is the leading company in the most important digital item, which is the mobile, to add more digital witnesses later on. We support today computer, we support cloud, we support video forensics or video camera, we support crypto in collaboration with Chainalysis, and we intend to add more and more witnesses. And what you can expect from us, in addition to that, is to see more and increased streamlining between each one of these components. I'd like to skip that part, and I would like to move . . . Creative. Let's talk about our growth, about our growth strategy. Everything starts with our strong position within our customer base. Today, we have an excellent customer base.
We have, as I said, 5,300 public sector agencies which are buying from us, and more than 1,500 private sector customers, may it be corporates, Fortune 500, blue-chip enterprises, and service providers who are buying from us as well. The true strength of the company is in the United States, which is 50% of our business, and more than 30% is in Europe, especially the west part of Europe. And we are doing our growth is based on land and expand, okay? Going to these accounts and selling them more and expanding our position. The good news, because there is the element of the land, the hard work of landing was done. And I can say that we are steadily expanding and growing within our customers by understanding their pains, understanding their mode of operation.
And the good news, we are still under-penetrated, something that gives us an amazing opportunity for cross-sell and upsell. And maybe two anecdotal items here: One, our customers are spending, as part of their IT budget, a fraction of Cellebrite today, a place for growth. And if we look at the potential buying centers, meaning within that logo, there are buying centers, professional centers, sub-logos, SIGINT entities, investigative entities, more labs within existing accounts. The number of buying centers that we can penetrate is much bigger in comparison to where we are today. So there is a much bigger potential or a big potential for growth for Cellebrite. Now, you've seen that, and I would like to look at it from a different view by emphasizing our upgrade, upsell, and expansion potential of the practice. How does it really work?
So if I look at our digital forensic unit environment, and I'm going to the collect and review, to the Inseyets. Over there, we are coming, and those of you who haven't heard, we came in the beginning of the year with a new revolutionary collect and review solution, our Cellebrite Inseyets, which combines capabilities of separated solution together and basically upgrade faster and smarter, more support, better UX, UI. And with that, we are basically creating an upgraded capability, which creates more productivity, and that means that that solution can be expanded and be used in much more use cases within our existing customer base. On top of that, the... on the right side, upsell and cross-sell, typical for investigative analytics. We are the champs of the DFU, of the digital forensic units.
We are making, and I'll talk about it in a second, a significant effort to grow within the investigative units as well. Again, same logo, but sub-logos or new buying centers within the same account. And over there, that's a classic adjacent, where we are selling, cross-selling, upselling to different personas. And in the middle, that bridge, that evidence management, case management with the Guardian, classic upsell and cross-sell opportunity for the company. And then in order to do that, in order to do that, you need more, I would say, applicable or fit or professional sales force. Those who followed our last earnings call that we've done two weeks ago, we are increasing from a rich people problem, actually, our quota carriers landscape. We are supporting with adding more quota carriers. There are companies who say, "I can sell. I'll add quota carrier.
That will solve my problem." We have an opposite challenge. We have too many accounts and opportunities to deal with, so we are increasing the quota carriers, and we are increasing the amount of solution sellers, those who can deal not only with product selling, but also with solution selling, long sales cycle, account-based marketing, customer success, and everything which is related to that, and specifically for the investigative unit, expansion with dedicated specialists that will sell to the investigative units. Now, I wanna talk shortly about these four growth engines. These are the growth engines, the leadership in the digital forensic units, the growth and the leadership in the investigative units, the private sector, and the cloud. I wanna talk shortly about each one of them. Those are...
If you think about our growth, those are the four major powers or engines that will take Cellebrite into the next level in our growth journey. So DFU leadership. First of all, I mentioned that we are leveraging on— For those who knows us, we are leading this market, and we have today 28,000 licenses by customers in the public sector, or an additional 4,000 in the private sector. It's written here, the 28,000. This is specifically for the public, and we intend to convert, in the next 3 years, a significant amount of that install base, riding on that revolutionary Cellebrite Inseyets, our new solution. On top of that, as I mentioned before, end-to-end offering, which will revolutionize and upgrade the productivity of the digital forensic units.
This is connecting front-end access with evidence management and clear opportunity to create an amazing efficiency within these customers. But then there is the IU. As I said in our Investors Day in New York in March, 2024 is the first year that Cellebrite was building a dedicated team, a dedicated organization, to deal specifically with the investigative units, something that we have done so far with the same, I would say, workhorse of our sales organization. And this is because there is an amazing untapped growth opportunity here. There are identified thousands of buying centers of high crime units which need investigative analytics, and we haven't approached them yet, okay? Part of our existing logos. There is a single-digit penetration for investigative analytics and law enforcement, and an expected growth of 35%-50% year-over-year.
If you add to that the expected 20% growth in collect and review in digital forensic units, you can already understand the pretty much guaranteed growth path of Cellebrite in the public sector. On top of that, there are today more than 500,000 investors who are using already the outputs of our Inseyets product in a free-of-charge model, and our move to the cloud will enable us to create models that will monetize, bring obviously more value to what they are using, and then bring attractive, very attractive pricing models into that. Clearly, here, we will continue to use the opportunity and lead with AI about persona AI-related tools, images, and much more. The good news that in our space, AI is not an enemy of the employees or of the investigators. It's actually a friend.
No one can replace the human factor, this is one. Second, the pressure to do more with less creates basically need for, need for tools that can anticipate and help the investigator to figure out, where do I need to go when I look at evidence? What are the automated tools that I can use? So AI, key in our investment and an opportunity, and also here, an end-to-end between backend analytics and evidence management. Again, the Inseyets that takes the data via evidence management, and then shared and reviewed by investigators and other functions within the organization or within law enforcement, and that basically brings the ability to solve more cases and solve them faster. And then there is the private sector. 10% of the Cellebrite activity today in terms of ARR revenue, even a little bit less.
This is something that we managed very sporadic until 2021, and we created a dedicated entity after an acquisition of an American company, BlackBag Technologies, that brought us the computer into our range of digital witnesses that we support. Here, in corporates and service providers, we intend to do three things: one, continue to lead with advanced collection and advanced remote collection, which is a key, both mobile and computer. We hear from corporates, the blue-chip enterprises, the large enterprises, that they need today, when they do internal investigations, they need to deal with multiple use cases and multiple data sources. And here there is a need, and we intend to ride on that. That's more a 2026, 2027 play. Development of a SaaS platform also here, that will enable the usage of these multi cases.
And clearly, here we have more than 1,500 customers, organically or inorganically, to expand our customer base, and within our customer base, to increase the ACV. And there is the last thing, which is a platform game. So, so far, I talked about three growth engines, which are customers growth engine. Again, DFU in public sector, investigative units in public sector, and private sector customers, enterprise and service providers. And then there is a platform. If I look at our main activity, which is our public sector customers, and especially the police, for a long time, it was only an on-prem environment. Investigative data is sensitive, and they were reluctant in order to upload that to the cloud.
Within time, and especially today, I'm glad to say that especially in the U.S., U.K., Australia, which covers only that 60% of our business, there is receptiveness and willingness to invest more in cloud and upload at least part of the investigative data into the cloud, and we intend to invest a lot today. I don't remember, I think it's low teens, the part of cloud business as part of what we do today. If I look at the picture 5 years from now, we anticipate it's gonna be a 50/50 between on-prem and cloud. On-prem is here to stay, but we are committed to bring our entire offering to cloudify it and come with the right SaaS model.
Maybe worth mentioning, that's why, and we published that this year, we are investing strongly in a FedRAMP standard, security on a higher standard, in order to expand in a very strong segment that we are managing, the federal space, and that will enable us, obviously, to push the cloud into the next level. A little bit for an end about our financials. I'll do it short because basically everything that I just said is being reflected in our numbers and in our results. Actually, you could see that we had a very solid Q1. Very strong in terms of continuous growth, above what we expected when it came to ARR and a higher profitability, and on the fly continued to progress in each one of our strategic directions.
We also were very happy to see that we were above the Rule of 45, that we were putting ourselves as a target, 25% ARR, combined with 20% adjusted EBITDA. So we have done better than that. And talking about ARR, maybe it's an opportunity to have a good look about the picture of growth of the company in the past. Because here, first of all, you can see that our growth, significant growth, this business is reflected in our growth in ARR. Worth mentioning that we finished the transition to subscription in 2023. This is already behind us. And if I look at the ARR in Q1 of 2024, that was mainly... Think about what I said before about the growth. It was pushed mainly by expansion within our existing logos.
That's our growth strategy, which basically reflects the behavior and what we have done in past quarters in that direction. Then on top of that, if I look by product, and if I think by product, the major part of ARR growth will be by expanding with our Cellebrite Inseyets in existing logo, and that's gonna be complemented by a growth of Pathfinder in investigative units and evidence management, Guardian, in each one of them. And if I look at our territorial ARR split in Q1, I think that we are very pleased by the fact that we have done, I think 28% of our ARR was in North America in terms of the twenty-five percent growth in EMEA and 30% growth in Asia Pacific.
If I look into the future, well, we shared the guidance in May, in our earnings call, and although we are still in an early stage, I would say that we are pretty much confident that we have everything that it takes in order to meet our targets for this year. That includes the top line. That includes also the belief that we have all the ingredients to deliver a healthy long-term, also for this year and beyond, healthy margin and healthy profitability. And you can expect, as every year, we are pretty much seasonally impacted, the H1 is always more, let's say, stronger and more significant than the activity in H2. The H2 is more significant than H1, mainly due to the Fed in the USA, which is a Q3 play, and the end of the year in Europe.
And as such, we expect that we see 52%-53% of our activity coming in the H2 of the year, meaning a stronger profitability in that direction. And if I look long term, and by that I will come to an end, basically, what I can say is that the company is committed and capable to present a durable, profitable growth, because these are the underlying assumptions that we presented also in New York, in our Investors Day in March, for the perspective of the 3-5 years. We are committed and capable for a mid-20s ARR. It will be, in the next 3 years, a rather a play of a 25% ARR and 20% profitability.
Within time, we could expect some deceleration, 27-28 years in terms of ARR, but then economies of scale, our ability to increase profitability, so again, durable, profitable growth and committed to the rule of 45. So in summary, I would say healthy market with the digital and mobile, which are there to stay. Remember, customers which have the need to do more with less, spending more budget, but have constrained resources. An amazing opportunity then for a disruptive technology like the Cellebrite technology, to come and solve that productivity problem by enabling them to do their investigation faster, smarter, and much more efficient.
I remind again about that gap in public safety and the value chain, and the fact that we are able to come finally with an ongoing, ongoing streamlined end-to-end platform that will solve the entire pain of the investigative flow or the investigative value chain. Investment as a result in cloud, side by side with on-prem, investment in automation, in AI, and in automatic tools, and I would say that we are just getting started. So, a beautiful journey that we still can and will do into the future. So, and by that, I'll... I'm done, and thank you for your time, and I don't know if there is time for questions?