Tue. Mar 19th, 2024

Content Assessment: A Record Breaking Quarter? KLDiscovery Inc. Announces Fourth Quarter 2022 Financial Results

Information - 94%
Insight - 95%
Relevance - 93%
Objectivity - 91%
Authority - 93%

93%

Excellent

A short percentage-based assessment of the qualitative benefit of the recent 4Q22 earnings report from global provider of electronic discovery, information governance and data recovery technology solutions, KLDiscovery.

Editor’s Note: From time to time, ComplexDiscovery highlights publicly available or privately purchasable announcements, content updates, and research from cyber, data, and legal discovery providers, research organizations, and ComplexDiscovery community members. While ComplexDiscovery regularly highlights this information, it does not assume any responsibility for content assertions.

Contact us today to submit recommendations for consideration and inclusion in ComplexDiscovery’s data and legal discovery-centric service, product, or research announcements.


Press Announcement Extract (March 15, 2023)

KLDiscovery Inc. Announces Fourth Quarter 2022 Financial Results

Achieves Highest Revenue, Lowest Net Loss and Highest Adjusted EBITDA in Company History in Fourth Quarter

EDEN PRAIRIE, Minn.–(BUSINESS WIRE)– KLDiscovery Inc. (“KLDiscovery” or the “Company”), a leading global provider of electronic discovery, information governance and data recovery technology solutions, announced today that revenue for the fourth quarter ended December 31, 2022 was $85.8 million versus $82.3 million in the fourth quarter of 2021. Net loss for the fourth quarter of 2022 was $(5.0) million compared to $(7.3) million in the fourth quarter of 2021.

EBITDA1 for the fourth quarter of 2022 was $18.3 million compared to $13.8 million in the fourth quarter of 2021. Adjusted EBITDA1 (which excludes stock-based compensation, acquisition financing and transaction costs and other items as described below) for the fourth quarter of 2022 was $20.4 million compared to $15.3 million in the fourth quarter of 2021, even including planned investments in research and development and sales and marketing.

“We delivered outstanding financial results in the fourth quarter of 2022, despite the challenging macroeconomic environment,” said Christopher Weiler, CEO of KLDiscovery Inc. “In the fourth quarter of 2022, we achieved our best revenue quarter ever with revenue of $85.8 million and our lowest quarter of net loss, which improved by 32% year-over-year year from $(7.3) million to $(5.0) million. We generated our highest ever quarterly EBITDA1 and Adjusted EBITDA1, both growing 33% year-over-year to $18.3 million and $20.4 million respectively. For the full year of 2022, our revenue was $317.4 million, which was slightly less than $320.5 million in 2021, however, when you consider the headwinds we experienced from a difficult macroenvironment, our revenue results in 2022 were an accomplishment punctuated by a record setting Q4. Additionally, in 2022 we continued our investments in technology and sales and marketing while still delivering impressive financial results.”

Mr. Weiler continued. “We achieved our highest quarter of revenue from our Nebula platform, up 23% over the fourth quarter of 2021, as the number of Nebula clients increased 33% year-over-year and the number of Nebula matters accelerated to 1,175. I am glad to see that our efforts throughout 2022 to seek operating efficiencies are contributing to our strong results. Our world-class customer service to our clients combined with our fully integrated technology offering is paying off as revenue acceleration continues into the beginning of 2023. Our Client Portal continues to receive positive customer feedback as we offer the industry’s only comprehensive dashboard with real time matter and portfolio intelligence.”

About KLDiscovery

KLDiscovery provides technology-enabled services and software to help law firms, corporations, government agencies and consumers solve complex data challenges. The company, with offices in 25 locations across 16 countries, is a global leader in delivering best-in-class eDiscovery, information governance and data recovery solutions to support the litigation, regulatory compliance, internal investigation and data recovery and management needs of our clients. Serving clients for over 30 years, KLDiscovery offers data collection and forensic investigation, early case assessment, electronic discovery and data processing, application software and data hosting for web-based document reviews, and managed document review services. In addition, through its global Ontrack Data Recovery business, KLDiscovery delivers world-class data recovery, email extraction and restoration, data destruction and tape management. KLDiscovery has been recognized as one of the fastest growing companies in North America by both Inc. Magazine (Inc. 5000) and Deloitte (Deloitte’s Technology Fast 500) and CEO Chris Weiler was recognized as a 2014 Ernst & Young Entrepreneur of the Year™. Additionally, KLDiscovery is a Relativity Certified Partner and maintains ISO/IEC 27001 Certified data centers around the world. For more information, please email info@kldiscovery.com or visit www.kldiscovery.com.

1 Non-GAAP measure.

Read the original announcement.


Complete Announcement with Tables (PDF) – Mouseover to Scroll

KLDiscovery Inc Announces Fourth Quarter 2022 Financial Results

Lagniappe

Additional Reading

Source: ComplexDiscovery

 

Generative Artificial Intelligence and Large Language Model Use

ComplexDiscovery OÜ recognizes the value of GAI and LLM tools in streamlining content creation processes and enhancing the overall quality of its research, writing, and editing efforts. To this end, ComplexDiscovery OÜ regularly employs GAI tools, including ChatGPT, Claude, Midjourney, and DALL-E, to assist, augment, and accelerate the development and publication of both new and revised content in posts and pages published (initiated in late 2022).

ComplexDiscovery also provides a ChatGPT-powered AI article assistant for its users. This feature leverages LLM capabilities to generate relevant and valuable insights related to specific page and post content published on ComplexDiscovery.com. By offering this AI-driven service, ComplexDiscovery OÜ aims to create a more interactive and engaging experience for its users, while highlighting the importance of responsible and ethical use of GAI and LLM technologies.

 

Have a Request?

If you have information or offering requests that you would like to ask us about, please let us know, and we will make our response to you a priority.

ComplexDiscovery OÜ is a highly recognized digital publication focused on providing detailed insights into the fields of cybersecurity, information governance, and eDiscovery. Based in Estonia, a hub for digital innovation, ComplexDiscovery OÜ upholds rigorous standards in journalistic integrity, delivering nuanced analyses of global trends, technology advancements, and the eDiscovery sector. The publication expertly connects intricate legal technology issues with the broader narrative of international business and current events, offering its readership invaluable insights for informed decision-making.

For the latest in law, technology, and business, visit ComplexDiscovery.com.