DISCO Announces Third Quarter 2024 Financial Results
CS Disco (NYSE: LAW) announced its Q3 2024 financial results, reporting total revenue of $36.3 million, a 4% YoY increase. Software revenue reached $30.2 million, up 6% YoY. However, the company posted a GAAP net loss of $9.2 million compared to $1.0 million in Q3 2023 and an adjusted EBITDA of $(4.5) million, consistent with Q3 2023. CEO Eric Friedrichsen emphasized product innovation and AI-driven solutions as key differentiators. Recent initiatives include the addition of new executives and the launch of Cecilia Auto Review, a generative AI tool, in North America, the EU, and the UK. The company’s Q4 2024 outlook projects total revenue between $35.2 million and $37.2 million, with an adjusted EBITDA between $(7.6) million and $(5.6) million. For FY 2024, total revenue is expected to be in the range of $143.0 million to $145.0 million, with an adjusted EBITDA between $(22.0) million and $(20.0) million.
CS Disco (NYSE: LAW) ha annunciato i suoi risultati finanziari per il terzo trimestre del 2024, riportando un fatturato totale di 36,3 milioni di dollari, un aumento del 4% rispetto all'anno precedente. Il fatturato software ha raggiunto i 30,2 milioni di dollari, in aumento del 6% anno su anno. Tuttavia, l'azienda ha registrato una perdita netta GAAP di 9,2 milioni di dollari rispetto a 1,0 milioni nel Q3 2023 e un EBITDA rettificato di $(4,5) milioni, in linea con il Q3 2023. Il CEO Eric Friedrichsen ha sottolineato che l'innovazione del prodotto e le soluzioni basate su IA sono differenziali chiave. Tra le recenti iniziative c'è l'aggiunta di nuovi dirigenti e il lancio di Cecilia Auto Review, uno strumento di IA generativa, in Nord America, nell'UE e nel Regno Unito. Le previsioni per il quarto trimestre del 2024 indicano un fatturato totale compreso tra 35,2 milioni e 37,2 milioni di dollari, con un EBITDA rettificato tra $(7,6) milioni e $(5,6) milioni. Per l'anno fiscale 2024, ci si aspetta che il fatturato totale sia compreso tra 143,0 milioni e 145,0 milioni di dollari, con un EBITDA rettificato tra $(22,0) milioni e $(20,0) milioni.
CS Disco (NYSE: LAW) anunció sus resultados financieros del tercer trimestre de 2024, reportando unos ingresos totales de 36,3 millones de dólares, un aumento del 4% interanual. Los ingresos por software alcanzaron los 30,2 millones de dólares, lo que representa un aumento del 6% interanual. Sin embargo, la compañía registró una pérdida neta GAAP de 9,2 millones de dólares, en comparación con 1,0 millones en el Q3 2023 y un EBITDA ajustado de $(4,5) millones, consistente con el Q3 2023. El CEO Eric Friedrichsen enfatizó la innovación en productos y soluciones impulsadas por IA como factores diferenciadores clave. Las iniciativas recientes incluyen la incorporación de nuevos ejecutivos y el lanzamiento de Cecilia Auto Review, una herramienta de IA generativa, en América del Norte, la UE y el Reino Unido. Las previsiones para el cuarto trimestre de 2024 proyectan ingresos totales entre 35,2 millones y 37,2 millones de dólares, con un EBITDA ajustado entre $(7,6) millones y $(5,6) millones. Para el año fiscal 2024, se espera que los ingresos totales se encuentren en el rango de 143,0 millones a 145,0 millones de dólares, con un EBITDA ajustado entre $(22,0) millones y $(20,0) millones.
CS Disco (NYSE: LAW)는 2024년 3분기 재무 결과를 발표하며 총 수익이 3,630만 달러로 지난해 대비 4% 증가했다고 보고했습니다. 소프트웨어 수익은 3,020만 달러에 달하며, 이는 지난해 대비 6% 증가한 수치입니다. 하지만, 회사는 2023년 3분기 100만 달러에 비해 GAAP 순손실이 920만 달러로 증가했으며, 조정된 EBITDA는 $(450만) 달러로 2023년 3분기와 일치했습니다. CEO 에릭 프리드리히센은 제품 혁신과 AI 기반 솔루션을 주요 차별화 요소로 강조했습니다. 최근 이니셔티브로는 새로운 임원 추가와 북미, EU, 영국에서 출시된 생성형 AI 도구인 세실리아 오토 리뷰가 포함됩니다. 2024년 4분기 전망은 총 수익이 3,520만 달러에서 3,720만 달러 사이로 예상되며, 조정된 EBITDA는 $(760만) 달러에서 $(560만) 달러 사이로 예상합니다. 2024 회계 연도 동안 총 수익은 1억 4,300만 달러에서 1억 4,500만 달러 사이로 예상되며, 조정된 EBITDA는 $(2,200만) 달러에서 $(2,000만) 달러 사이로 예상됩니다.
CS Disco (NYSE: LAW) a annoncé ses résultats financiers pour le troisième trimestre 2024, rapportant un chiffre d'affaires total de 36,3 millions de dollars, soit une augmentation de 4 % par rapport à l'année précédente. Le chiffre d'affaires logiciel a atteint 30,2 millions de dollars, en hausse de 6 % par rapport à l'an dernier. Cependant, l'entreprise a enregistré une perte nette GAAP de 9,2 millions de dollars par rapport à 1,0 million de dollars au T3 2023 et un EBITDA ajusté de $(4,5) millions, conforme au T3 2023. Le PDG Eric Friedrichsen a souligné l'innovation produit et les solutions basées sur l'IA comme des éléments clés de différenciation. Les initiatives récentes comprennent l'ajout de nouveaux dirigeants et le lancement de Cecilia Auto Review, un outil d'IA générative, en Amérique du Nord, dans l'UE et au Royaume-Uni. Les perspectives pour le quatrième trimestre 2024 projettent un chiffre d'affaires total compris entre 35,2 millions et 37,2 millions de dollars, avec un EBITDA ajusté compris entre $(7,6) millions et $(5,6) millions. Pour l'exercice 2024, le chiffre d'affaires total devrait se situer entre 143,0 millions et 145,0 millions de dollars, avec un EBITDA ajusté compris entre $(22,0) millions et $(20,0) millions.
CS Disco (NYSE: LAW) hat seine Finanzzahlen für das 3. Quartal 2024 veröffentlicht und berichtet von einem Gesamtumsatz von 36,3 Millionen US-Dollar, was einem Anstieg von 4 % im Vergleich zum Vorjahr entspricht. Der Softwareumsatz erreichte 30,2 Millionen US-Dollar, ein Anstieg von 6 % im Jahresvergleich. Das Unternehmen verzeichnete jedoch einen GAAP-Nettoverlust von 9,2 Millionen US-Dollar im Vergleich zu 1,0 Millionen US-Dollar im Q3 2023 und ein bereinigtes EBITDA von $(4,5) Millionen US-Dollar, was mit dem Q3 2023 übereinstimmt. CEO Eric Friedrichsen betonte Produktinnovation und KI-gesteuerte Lösungen als wesentliche Differenzierungsmerkmale. Zu den jüngsten Initiativen gehören die Hinzufügung neuer Führungskräfte und der Start von Cecilia Auto Review, einem generativen KI-Tool, in Nordamerika, der EU und dem Vereinigten Königreich. Der Ausblick für das 4. Quartal 2024 prognostiziert Gesamtumsätze zwischen 35,2 Millionen und 37,2 Millionen US-Dollar, mit einem bereinigten EBITDA zwischen $(7,6) Millionen und $(5,6) Millionen. Für das Geschäftsjahr 2024 wird ein Gesamtumsatz im Bereich von 143,0 Millionen bis 145,0 Millionen US-Dollar und ein bereinigtes EBITDA zwischen $(22,0) Millionen und $(20,0) Millionen erwartet.
- Total revenue increased by 4% YoY to $36.3 million.
- Software revenue grew by 6% YoY to $30.2 million.
- Launch of Cecilia Auto Review and expansion into the EU and UK.
- GAAP net loss increased to $9.2 million from $1.0 million YoY.
- Adjusted EBITDA remained negative at $(4.5) million in Q3 2024.
- Projected adjusted EBITDA for Q4 2024 is between $(7.6) million and $(5.6) million.
- Fiscal year 2024 adjusted EBITDA guidance is negative, ranging from $(22.0) million to $(20.0) million.
Total Revenue of
“As we continue to focus on the customer experience, operational effectiveness and revenue acceleration, I am excited about the path forward for DISCO with continued product innovation,” said CEO Eric Friedrichsen. “DISCO’s combination of AI-driven products and teams of legal and professional experts is a clear differentiator in legal technology, and we continue to demonstrate the power of our platform and our people for the largest and most important matters in litigation.”
Third Quarter 2024 Financial Highlights:
-
Software revenue was
, up$30.2 million 6% compared to the third quarter of 2023. -
Total revenue was
, up$36.3 million 4% compared to the third quarter of 2023. -
GAAP net loss was
, compared to$9.2 million in the third quarter of 2023.$1.0 million -
Adjusted EBITDA was
in the third quarter of 2024 and 2023.$(4.5) million
Recent Business Highlights:
- New Executives: DISCO announced Lauren Caruso as Senior Vice President, Chief Sales Officer, Susan Garcia as General Counsel and Chief Compliance Officer and Joe Jacobson as Senior Vice President of Operations.
-
Cecilia: DISCO added Cecilia Auto Review, a generative AI tool that accelerates first-pass legal document review, to its suite of generative AI ediscovery products in
North America and officially launched its Cecilia AI Platform in the European Union and theUnited Kingdom , including Cecilia Q&A, Cecilia single doc Q&A and Cecilia doc summaries.
Fourth Quarter and Full Year 2024 Financial Outlook
As of November 6, 2024, DISCO is issuing the following outlook for the fourth quarter of 2024 and fiscal year 2024:
Fourth quarter of 2024:
-
Software revenue in the range of
-$30.0 million .$31.0 million -
Total revenue in the range of
-$35.2 million .$37.2 million -
Adjusted EBITDA in the range of
-$(7.6) million .$(5.6) million
Fiscal year 2024:
-
Software revenue guidance in the range of
-$119.4 million .$120.4 million -
Total revenue guidance in the range of
-$143.0 million .$145.0 million -
Adjusted EBITDA in the range of
-$(22.0) million .$(20.0) million
DISCO’s fourth quarter and fiscal year 2024 financial outlook is based on assumptions that are subject to change, many of which are outside of its control. If actual results vary from these assumptions, these expectations may change. There can be no assurance that DISCO will achieve these results.
Reconciliation of Adjusted EBITDA on a forward-looking basis to net loss, the most directly comparable GAAP measure, is not available without unreasonable efforts due to the high variability and complexity and low visibility with respect to the charges excluded from this non-GAAP measure; in particular, the effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in DISCO’s stock price. DISCO expects the variability of the above charges to have a significant, and potentially unpredictable, impact on its future GAAP financial results.
Conference Call Information
DISCO will host a conference call and webcast at 4:00 p.m. CT (5:00 p.m. ET) today, November 6, 2024, to discuss its third quarter 2024 financial results and business highlights. The conference call can be accessed by dialing (888) 300-4030 from
Following the completion of the call until 10:59 p.m. CT (11:59 p.m. ET) on Wednesday, November 27, 2024, a telephone replay will be available by dialing (800) 770-2030 from
About DISCO
DISCO (NYSE: LAW) provides cloud-native, artificial intelligence-powered legal product offerings that simplify legal hold, legal request, ediscovery, legal document review and case management for enterprises, law firms, legal services providers and governments. Our scalable, integrated product offerings enable legal departments to easily collect, process and review enterprise data that is relevant or potentially relevant to legal matters.
References to “DISCO,” the “Company,” “our” or “we” in this press release refer to CS Disco, Inc. and its subsidiaries on a consolidated basis.
Use of Non-GAAP Financial Measures
DISCO uses the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin; non-GAAP cost of revenue; non-GAAP gross profit; non-GAAP gross margin; non-GAAP research and development expense; non-GAAP research and development expense as a percentage of revenue; non-GAAP sales and marketing expense; non-GAAP sales and marketing expense as a percentage of revenue; non-GAAP general and administrative expense; non-GAAP general and administrative expense as a percentage of revenue; non-GAAP loss from operations; non-GAAP operating margin; non-GAAP net loss attributable to common stockholders, non-GAAP net loss attributable to common stockholders per share (basic and diluted) and non-GAAP net loss attributable to common stockholders as a percentage of revenue. Management believes that these non-GAAP financial measures are useful measures of operating performance because they exclude items that DISCO does not consider indicative of its core performance.
In the case of Adjusted EBITDA and Adjusted EBITDA margin, DISCO adjusts net loss for such items as depreciation and amortization expense; income tax provision; interest and other, net; stock-based compensation expense; payroll tax expense on employee stock transactions; restructuring charges; expenses associated with stockholder litigation; and other one-time, non-recurring items, when applicable. In the case of non-GAAP cost of revenue, non-GAAP gross profit and non-GAAP gross margin, DISCO adjusts the respective GAAP balances for stock-based compensation expense. In the case of non-GAAP research and development expense, non-GAAP research and development expense as a percentage of revenue, non-GAAP sales and marketing expense and non-GAAP sales and marketing expense as a percentage of revenue, DISCO adjusts the respective GAAP balances for stock-based compensation expense, restructuring charges, and other one-time, non-recurring items, when applicable. In the case of non-GAAP general and administrative expense, non-GAAP general and administrative expense as a percentage of revenue, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss attributable to common stockholders, non-GAAP net loss attributable to common stockholders per share (basic and diluted) and non-GAAP net loss attributable to common stockholders as a percentage of revenue, DISCO adjusts the respective GAAP balances for stock-based compensation expense, restructuring charges, expenses associated with stockholder litigation, and other one-time, non-recurring items, when applicable.
There are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating loss and net loss. As a result, these non-GAAP financial measures have limitations and should be considered in addition to, not as a substitute for or superior to, the closest GAAP measures, or other financial measures prepared in accordance with GAAP.
DISCO's management uses these non-GAAP measures as measures of operating performance; to prepare DISCO's annual operating budget; to allocate resources to enhance the financial performance of DISCO's business; to evaluate the effectiveness of DISCO's business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of DISCO's results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communication with DISCO’s board of directors concerning financial performance.
Forward-Looking Statements
This press release contains forward-looking statements, including, among other things, statements regarding DISCO’s future financial performance. Words such as “may,” “should,” “will,” “believe,” “expect,” “anticipate,” “target,” “project,” and similar phrases that denote future expectation or intent regarding DISCO’s financial results, operations, and other matters are intended to identify forward-looking statements. You should not rely upon forward-looking statements as predictions of future events.
The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause DISCO’s actual results, performance, or achievements to differ materially, including (i) our history of operating losses; (ii) our limited operating history; (iii) our ability to maintain and advance our innovation and brand; (iv) our ability to effectively add new customers; (v) our ability to effectively increase usage and penetration with our existing customer base; (vi) our ability to expand our sales coverage and establish a digital sales channel; (vii) our ability to expand internationally; (viii) our ability to extend and strengthen our channel partnerships and integrations; (ix) our ability to expand our offering portfolio to a wider range of legal processes outside of our current core offerings; (x) our dependence on revenue from customer usage, which fluctuates based on the timing of and activity driven by legal matters for which our product offerings are used, and any shortfall of large matters on our platform; (xi) our ability to pursue strategic acquisitions and strategic investments to expand the functionality and value of our product offerings; (xii) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business in the jurisdictions in which we operate; (xiii) the potential that our computer or electronic systems, applications or services, or those of any third parties on whom we depend, fail or suffer security or data privacy breaches or other unauthorized or improper access to, use of, or destruction of our proprietary or confidential data, employee data, or personal data; (xiv) our ability to compete effectively with existing competitors and new market entrants; (xv) the impact of fluctuations in general macroeconomic conditions, such as the current inflationary environment and fluctuating interest rates; and (xvi) the impact that global events, such as the
The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, filed with the SEC on August 8, 2024. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that we make with the SEC from time to time, including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.
Forward-looking statements represent DISCO’s management’s beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
CS DISCO, INC. Condensed Consolidated Balance Sheets (in thousands, except par value amounts) (unaudited) |
|||||||
|
September 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
76,549 |
|
|
$ |
159,551 |
|
Short-term investments |
|
50,245 |
|
|
|
— |
|
Accounts receivable, net |
|
23,988 |
|
|
|
26,993 |
|
Prepaid expenses and other current assets |
|
6,318 |
|
|
|
5,795 |
|
Total current assets |
|
157,100 |
|
|
|
192,339 |
|
Property and equipment, net |
|
9,239 |
|
|
|
9,663 |
|
Operating lease right-of-use assets |
|
6,859 |
|
|
|
8,143 |
|
Primary law intangible asset, net |
|
14,000 |
|
|
|
14,000 |
|
Other intangible assets, net |
|
470 |
|
|
|
681 |
|
Goodwill |
|
5,898 |
|
|
|
5,898 |
|
Other assets |
|
816 |
|
|
|
823 |
|
Total assets |
$ |
194,382 |
|
|
$ |
231,547 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
3,410 |
|
|
$ |
5,234 |
|
Accrued expenses |
|
5,847 |
|
|
|
5,502 |
|
Accrued salary and benefits |
|
6,816 |
|
|
|
6,230 |
|
Deferred revenue |
|
3,042 |
|
|
|
4,285 |
|
Operating leases |
|
1,823 |
|
|
|
1,826 |
|
Finance leases |
|
42 |
|
|
|
41 |
|
Total current liabilities |
|
20,980 |
|
|
|
23,118 |
|
Operating leases, non-current |
|
5,817 |
|
|
|
7,136 |
|
Finance leases, non-current |
|
127 |
|
|
|
158 |
|
Other liabilities |
|
199 |
|
|
|
800 |
|
Total liabilities |
|
27,123 |
|
|
|
31,212 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
300 |
|
|
|
306 |
|
Additional paid-in capital |
|
439,128 |
|
|
|
440,408 |
|
Accumulated other comprehensive income (loss) |
|
61 |
|
|
|
— |
|
Accumulated deficit |
|
(272,230 |
) |
|
|
(240,379 |
) |
Total stockholders’ equity |
|
167,259 |
|
|
|
200,335 |
|
Total liabilities and stockholders’ equity |
$ |
194,382 |
|
|
$ |
231,547 |
|
CS DISCO, INC. Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share amounts) (unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
$ |
36,266 |
|
|
$ |
34,943 |
|
|
$ |
107,842 |
|
|
$ |
102,348 |
|
Cost of revenue |
|
|
9,740 |
|
|
|
8,939 |
|
|
|
27,880 |
|
|
|
26,255 |
|
Gross profit |
|
|
26,526 |
|
|
|
26,004 |
|
|
|
79,962 |
|
|
|
76,093 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
12,757 |
|
|
|
12,065 |
|
|
|
37,724 |
|
|
|
41,095 |
|
Sales and marketing |
|
|
14,988 |
|
|
|
16,708 |
|
|
|
46,294 |
|
|
|
53,821 |
|
General and administrative |
|
|
9,658 |
|
|
|
128 |
|
|
|
31,537 |
|
|
|
23,345 |
|
Total operating expenses |
|
|
37,403 |
|
|
|
28,901 |
|
|
|
115,555 |
|
|
|
118,261 |
|
Loss from operations |
|
|
(10,877 |
) |
|
|
(2,897 |
) |
|
|
(35,593 |
) |
|
|
(42,168 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
||||||||
Interest and other income |
|
|
1,652 |
|
|
|
2,191 |
|
|
|
5,373 |
|
|
|
6,267 |
|
Interest and other expense |
|
|
185 |
|
|
|
(260 |
) |
|
|
(45 |
) |
|
|
(248 |
) |
Loss from operations before income taxes |
|
|
(9,040 |
) |
|
|
(966 |
) |
|
|
(30,265 |
) |
|
|
(36,149 |
) |
Income tax provision |
|
|
(118 |
) |
|
|
(64 |
) |
|
|
(309 |
) |
|
|
(161 |
) |
Net loss attributable to common stockholders |
|
$ |
(9,158 |
) |
|
$ |
(1,030 |
) |
|
$ |
(30,574 |
) |
|
$ |
(36,310 |
) |
Unrealized gain on investments |
|
|
61 |
|
|
|
— |
|
|
|
61 |
|
|
|
— |
|
Comprehensive loss |
|
$ |
(9,097 |
) |
|
$ |
(1,030 |
) |
|
$ |
(30,513 |
) |
|
$ |
(36,310 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(0.15 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.61 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
|
59,675 |
|
|
|
60,350 |
|
|
|
60,236 |
|
|
|
59,896 |
|
CS DISCO, INC. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
|||||||
|
Nine Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flow from operating activities: |
|
|
|
||||
Net loss |
$ |
(30,574 |
) |
|
$ |
(36,310 |
) |
Adjustments to reconcile net loss to cash used in operations: |
|
|
|
||||
Depreciation and amortization |
|
3,092 |
|
|
|
3,011 |
|
Stock-based compensation |
|
16,878 |
|
|
|
11,211 |
|
Charge to allowance for credit losses |
|
2,059 |
|
|
|
1,801 |
|
Loss (Gain) on disposal of long-lived assets |
|
(3 |
) |
|
|
1 |
|
Non-cash operating lease costs |
|
1,284 |
|
|
|
1,187 |
|
Amortization of premium on short-term investments |
|
(256 |
) |
|
|
— |
|
Other |
|
9 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
946 |
|
|
|
(6,184 |
) |
Prepaid expenses and other current assets |
|
(523 |
) |
|
|
(775 |
) |
Other long-term assets |
|
14 |
|
|
|
(124 |
) |
Accounts payable |
|
(1,432 |
) |
|
|
(1,928 |
) |
Accrued expenses and other |
|
355 |
|
|
|
1,791 |
|
Deferred revenue |
|
(1,243 |
) |
|
|
(1,134 |
) |
Operating lease liabilities |
|
(1,323 |
) |
|
|
(1,207 |
) |
Other liabilities |
|
(120 |
) |
|
|
(46 |
) |
Net cash used in operating activities |
|
(10,837 |
) |
|
|
(28,706 |
) |
Cash flow from investing activities: |
|
|
|
||||
Purchases of property, equipment and capitalized software development costs |
|
(2,223 |
) |
|
|
(3,587 |
) |
Purchases of short-term investments |
|
(49,937 |
) |
|
|
— |
|
Purchase of primary law intangible asset |
|
— |
|
|
|
(14,000 |
) |
Proceeds from disposal of equipment |
|
3 |
|
|
|
1 |
|
Cash paid for acquisitions |
|
— |
|
|
|
(1,180 |
) |
Net cash used in investing activities |
|
(52,157 |
) |
|
|
(18,766 |
) |
Cash flow from financing activities: |
|
|
|
||||
Proceeds from exercise of stock options |
|
30 |
|
|
|
514 |
|
Net proceeds from issuance of common stock under Employee Stock Purchase Plan |
|
601 |
|
|
|
1,459 |
|
Repurchase of common stock related to net share settlement |
|
(100 |
) |
|
|
(64 |
) |
Repurchase of common stock related to share repurchase program |
|
(20,052 |
) |
|
|
— |
|
Cash paid for acquisitions |
|
(457 |
) |
|
|
— |
|
Principal payments on finance lease obligations |
|
(30 |
) |
|
|
(29 |
) |
Net cash provided by (used in) financing activities |
|
(20,008 |
) |
|
|
1,880 |
|
Net decrease in cash and cash equivalents: |
|
(83,002 |
) |
|
|
(45,592 |
) |
Cash and cash equivalents at beginning of period |
|
159,551 |
|
|
|
203,244 |
|
Cash and cash equivalents at end of period |
$ |
76,549 |
|
|
$ |
157,652 |
|
Supplemental disclosure: |
|
|
|
||||
Cash paid for taxes |
$ |
572 |
|
|
$ |
500 |
|
Non-cash investing and financing activities: |
|
|
|
||||
Property and equipment included in accounts payable and accrued liabilities |
$ |
66 |
|
|
$ |
307 |
|
Contingent consideration related to acquisition |
$ |
481 |
|
|
$ |
753 |
|
CS DISCO, INC. Reconciliation from GAAP to Non-GAAP Results (in thousands, except for percentages and per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(9,158 |
) |
|
$ |
(1,030 |
) |
|
$ |
(30,574 |
) |
|
$ |
(36,310 |
) |
Depreciation and amortization expense |
|
989 |
|
|
|
1,054 |
|
|
|
3,092 |
|
|
|
3,011 |
|
Income tax provision |
|
118 |
|
|
|
64 |
|
|
|
309 |
|
|
|
161 |
|
Interest and other, net |
|
(1,837 |
) |
|
|
(1,931 |
) |
|
|
(5,328 |
) |
|
|
(6,019 |
) |
Stock-based compensation expense |
|
5,147 |
|
|
|
(2,881 |
) |
|
|
16,878 |
|
|
|
11,211 |
|
Payroll tax expense on employee stock transactions |
|
95 |
|
|
|
175 |
|
|
|
466 |
|
|
|
419 |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,590 |
|
Expenses associated with stockholder litigation |
|
143 |
|
|
|
— |
|
|
|
726 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
(4,503 |
) |
|
$ |
(4,549 |
) |
|
$ |
(14,431 |
) |
|
$ |
(24,937 |
) |
Adjusted EBITDA margin |
|
(12 |
)% |
|
|
(13 |
)% |
|
|
(13 |
)% |
|
|
(24 |
)% |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cost of revenue |
$ |
9,740 |
|
|
$ |
8,939 |
|
|
$ |
27,880 |
|
|
$ |
26,255 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
(456 |
) |
|
|
(270 |
) |
|
|
(1,273 |
) |
|
|
(772 |
) |
Non-GAAP cost of revenue |
$ |
9,284 |
|
|
$ |
8,669 |
|
|
$ |
26,607 |
|
|
$ |
25,483 |
|
Non-GAAP gross profit |
$ |
26,982 |
|
|
$ |
26,274 |
|
|
$ |
81,235 |
|
|
$ |
76,865 |
|
Non-GAAP gross margin |
|
74 |
% |
|
|
75 |
% |
|
|
75 |
% |
|
|
75 |
% |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Research and development |
$ |
12,757 |
|
|
$ |
12,065 |
|
|
$ |
37,724 |
|
|
$ |
41,095 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
(1,680 |
) |
|
|
(2,001 |
) |
|
|
(5,856 |
) |
|
|
(5,920 |
) |
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,510 |
) |
Non-GAAP research and development |
$ |
11,077 |
|
|
$ |
10,064 |
|
|
$ |
31,868 |
|
|
$ |
33,665 |
|
Non-GAAP research and development as a % of revenue |
|
31 |
% |
|
|
29 |
% |
|
|
30 |
% |
|
|
33 |
% |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Sales and marketing |
$ |
14,988 |
|
|
$ |
16,708 |
|
|
$ |
46,294 |
|
|
$ |
53,821 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
(1,213 |
) |
|
|
(1,277 |
) |
|
|
(3,464 |
) |
|
|
(4,028 |
) |
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(648 |
) |
Non-GAAP sales and marketing |
$ |
13,775 |
|
|
$ |
15,431 |
|
|
$ |
42,830 |
|
|
$ |
49,145 |
|
Non-GAAP sales and marketing as a % of revenue |
|
38 |
% |
|
|
44 |
% |
|
|
40 |
% |
|
|
48 |
% |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
General and administrative |
$ |
9,658 |
|
|
$ |
128 |
|
|
$ |
31,537 |
|
|
$ |
23,345 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
(1,798 |
) |
|
|
6,429 |
|
|
|
(6,285 |
) |
|
|
(491 |
) |
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(432 |
) |
Expenses associated with stockholder litigation |
|
(143 |
) |
|
|
— |
|
|
|
(726 |
) |
|
|
— |
|
Non-GAAP general and administrative |
$ |
7,717 |
|
|
$ |
6,557 |
|
|
$ |
24,526 |
|
|
$ |
22,422 |
|
Non-GAAP general and administrative as a % of revenue |
|
21 |
% |
|
|
19 |
% |
|
|
23 |
% |
|
|
22 |
% |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Loss from operations |
$ |
(10,877 |
) |
|
$ |
(2,897 |
) |
|
$ |
(35,593 |
) |
|
$ |
(42,168 |
) |
Operating margin |
|
(30 |
)% |
|
|
(8 |
)% |
|
|
(33 |
)% |
|
|
(41 |
)% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
5,147 |
|
|
|
(2,881 |
) |
|
|
16,878 |
|
|
|
11,211 |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,590 |
|
Expenses associated with stockholder litigation |
|
143 |
|
|
|
— |
|
|
|
726 |
|
|
|
— |
|
Non-GAAP loss from operations |
$ |
(5,587 |
) |
|
$ |
(5,778 |
) |
|
$ |
(17,989 |
) |
|
$ |
(28,367 |
) |
Non-GAAP operating margin |
|
(15 |
)% |
|
|
(17 |
)% |
|
|
(17 |
)% |
|
|
(28 |
)% |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss attributable to common stockholders |
$ |
(9,158 |
) |
|
$ |
(1,030 |
) |
|
$ |
(30,574 |
) |
|
$ |
(36,310 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
5,147 |
|
|
|
(2,881 |
) |
|
|
16,878 |
|
|
|
11,211 |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,590 |
|
Expenses associated with stockholder litigation |
|
143 |
|
|
|
— |
|
|
|
726 |
|
|
|
— |
|
Non-GAAP net loss attributable to common stockholders |
$ |
(3,868 |
) |
|
$ |
(3,911 |
) |
|
$ |
(12,970 |
) |
|
$ |
(22,509 |
) |
Non-GAAP net loss per share, basic and diluted |
$ |
(0.06 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.38 |
) |
Weighted average shares used to compute basic and diluted net loss per share |
|
59,675 |
|
|
|
60,350 |
|
|
|
60,236 |
|
|
|
59,896 |
|
Non-GAAP net loss attributable to common stockholders as a % of revenue |
|
(11 |
)% |
|
|
(11 |
)% |
|
|
(12 |
)% |
|
|
(22 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105719127/en/
Investor Relations Contact
IR@csdisco.com
Source: DISCO
FAQ
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