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    Content Assessment: Beyond Operational Efficiency? DISCO Announces Third Quarter 2022 Financial Results

    Information - 90%
    Insight - 88%
    Relevance - 92%
    Objectivity - 85%
    Authority - 90%

    89%

    Good

    A short percentage-based assessment of the qualitative benefit of the recent 3Q22 earnings report from cloud-native, artificial intelligence-powered legal solution provider, DISCO.

    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.

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


    Background Note: The following announcement shares the 3Q2022 financial results for eDiscovery provider DISCO and may be of interest to legal, business, and information technology professionals operating or investing in the eDiscovery ecosystem. Additionally, a recent post (August 2022) by Tomasz Tunguz, a venture capitalist with Redpoint, provides an interesting consideration that may be of relevance regarding the value of public software companies. The post, titled Growth is No Longer the Best Predictor of a Software Company’s Value, notes that profitability has surged as the most significant correlate and predictor of a public software company’s value. 

    Press Announcement Extract (November 10, 2022)

    DISCO Announces Second Quarter 2022 Financial Results

    Total Revenue of $34.5 Million, a Year-over-Year Increase of 15%

    CS Disco, Inc. (“DISCO”) (NYSE: LAW) today announced financial results for its third quarter ended September 30, 2022.

    “This quarter, we saw an increase in the number of customers utilizing our solution as our customer count grew to 1,318, an increase of 26% year over year,” said Kiwi Camara, Co-Founder and Chief Executive Officer. “Additionally, our increased focus on operational efficiency has resulted in a substantial beat of the EBITDA guidance we provided last quarter.”

    Third Quarter 2022 Financial Highlights:

    • Total revenue was $34.5 million, up 15% compared to the third quarter of 2021.
    • GAAP net loss was $20.1 million, compared to $9.2 million in the third quarter of 2021.
    • Adjusted EBITDA was ($13.1) million, compared to ($7.5) million in the third quarter of 2021.

    Recent Business Highlights:

    • DISCO Named Leader in IDC MarketScape: DISCO was recognized as a leader in the IDC MarketScape: Worldwide eDiscovery Early Case Assessment Software 2022 Vendor Assessment. IDC MarketScape identified strengths in DISCO’s corporate toolkit and ease-of-use for its customers.
    • Austin Business Journal Best CFO Awards 2022: Michael Lafair, CFO of DISCO, won the public company category in the Austin Business Journal Best CFO Awards 2022.

    Full Year 2022 Financial Outlook

    As of November 10, 2022, DISCO is issuing the following outlook for the fiscal year 2022:

    • Revenue in the range of $132.0 – $136.0 million, representing year-over-year growth between 15% and 19%.
    • Adjusted EBITDA in the range of ($54.0) – ($50.0) million.

    DISCO’s fiscal year 2022 financial outlook is based on a number of assumptions that are subject to change and 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 10, 2022, to discuss its third quarter 2022 financial results and business highlights. The conference call can be accessed by dialing (888) 550-5431 from the United States or +1 (646) 960-0807 internationally with conference ID 8394292. The live webcast of the conference call and other materials related to DISCO’s financial performance can be accessed from DISCO’s investor relations website at ir.csdisco.com.

    Following the completion of the call until 10:59 p.m. CT (11:59 p.m. ET) on Thursday, December 1, 2022, a telephone replay will be available by dialing (800) 770-2030 from the United States, +1 (647) 362-9199 internationally with conference ID 8394292. A webcast replay will also be available at ir.csdisco.com for 12 months.

    About DISCO

    DISCO (NYSE: LAW) provides a cloud-native, artificial intelligence-powered legal solution that simplifies ediscovery, legal document review and case management for enterprises, law firms, legal services providers and governments. Our scalable, integrated solution enables 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.

    Read the original announcement.


    Complete Announcement with Tables (PDF) – Mouseover to Scroll

    DISCO-Announces-Third-Quarter-2022-Financial-Results

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