Fri. Jun 2nd, 2023

Content Assessment: Temperatures Rising? eDiscovery Operational Metrics in the Spring of 2023

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A short percentage-based assessment of the qualitative benefit of the recent post on eDiscovery operational business metrics in the spring of 2023.

Editor’s Note: We are pleased to highlight that for the eighteenth time, the quarterly eDiscovery Business Confidence Survey conducted by ComplexDiscovery featured three optional questions on business operational metrics. Since the introduction of specific operational questions regarding Days Sales Outstanding (DSO), Monthly Recurring Revenue (MRR), and customer revenue distribution, over 1,620 legal, information technology, and business professionals have contributed their valuable insights. In the most recent survey, 67 respondents shared their opinions on at least one of these three questions. The subsequent observations and charts present the aggregate results of all eighteen quarterly surveys.

Industry Report

The Kinetics of Three eDiscovery Business Metrics in the Spring of 2023


The spring 2023 eDiscovery Business Confidence Survey serves as a valuable tool for gauging the business confidence levels of individuals working within the eDiscovery ecosystem. As a non-scientific quarterly survey, it explores various factors related to the creation, delivery, and consumption of eDiscovery products and services through nine core multiple-choice questions. Moreover, the survey delves into the business operational metrics of Days Sales Outstanding (DSO), Monthly Recurring Revenue (MRR), and revenue distribution across customer bases with three optional questions:

  1. Participants were asked to evaluate the trajectory of their organization’s DSO during the last quarter, which reflects the average number of days required for credit sales to be converted into cash or the collection of a company’s account receivables.
  2. The survey also inquired about the trajectory of the organization’s MRR in the past quarter, representing the income a company can reliably expect every 30 days, excluding revenue from one-time purchases billed at the time of purchase.
  3. Lastly, participants were prompted to describe the distribution of their organization’s revenue across their customer base during the last quarter, focusing on the reduction of revenue concentration among the group of customers who repeatedly purchase a business’s products or services.

Survey respondents were presented with four answer choices for the optional business operational metric questions: Increasing, Unfluctuating, Decreasing, and Do Not Know.

The subsequent observations and charted overviews display the aggregate results of the responses to these business operational metric questions. By offering a unique vector view of these crucial measurements’ trajectories, the findings may prove beneficial to business and legal professionals as they assess the current state and trends within the data and legal discovery landscape.

Key Observations in the Spring of 2023


In the spring of 2023, the eDiscovery Business Confidence Survey revealed several trends in operational business metrics, which are crucial for understanding the industry’s financial health and future prospects. The three key metrics assessed were Days Sales Outstanding (DSO), Monthly Recurring Revenue (MRR), and Distribution of Revenue Across Customer Base. 

For DSO, the spring 2023 survey showed a decrease in the percentage of respondents reporting an increase, dropping from 22.8% in the winter to 14.9%. However, there was a rise in the percentage reporting DSO as unfluctuating, up to 37.3%. A higher percentage of respondents also reported a decrease in DSO, reaching 10.4%, while 37.3% did not know their DSO status. The DSO trends are significant as they provide insights into the average time taken by companies to collect payment from clients, reflecting cash flow efficiency and credit control effectiveness. (Chart 1)

In terms of MRR, the spring 2023 survey saw a considerable increase in respondents reporting an increase in MRR, jumping to 38.2% from the previous quarter’s 15.8%. There was a slight decrease in the percentage of respondents reporting unfluctuating MRR (22.1%), and a drop in the percentage reporting a decrease in MRR (5.9%). MRR trends are vital for eDiscovery businesses because they indicate the stability and growth of recurring revenue streams, which can help predict future cash flows and assess overall business performance. (Chart 2)

Regarding the Distribution of Revenue Across Customer Base, the spring 2023 survey highlighted a substantial increase in respondents reporting an increasing distribution of revenue (37.3%). The percentage of respondents reporting unfluctuating revenue distribution fell to 28.4%, while the percentage reporting a decrease also declined to 4.5%. These trends in revenue distribution are essential for eDiscovery ecosystem stakeholders as they provide a sense of customer concentration and revenue diversification, which can impact the resilience and sustainability of a business. (Chart 3)

In summary, the spring 2023 eDiscovery Business Confidence Survey revealed trends in operational business metrics that are critical for understanding the financial health and growth prospects of the eDiscovery industry. DSO trends pointed to improvements in cash flow efficiency and credit control, while MRR trends showed signs of growing recurring revenue streams. The Distribution of Revenue Across Customer Base responses suggested increased diversification and resilience among eDiscovery businesses. These trends are crucial for stakeholders in the eDiscovery ecosystem, as they provide valuable insights into the industry’s current state and future direction.

Survey Charts

(Charts Can Be Expanded for Detailed Viewing)

Chart 1: An Aggregate Overview of Days Sales Outstanding (DSO) Trajectory

eDiscovery Business Metric Trajectory - Days Sales Outstanding - Aggregate - Spring 2023

Chart 2: An Aggregate Overview of Monthly Recurring Revenue (MRR) Trajectory

eDiscovery Business Metric Trajectory - Monthly Recurring Revenue - Aggregate - Spring 2023

Chart 3: An Aggregate Overview of Distribution of Revenue Across Customer Base

eDiscovery Business Metric Trajectory - Distribution of Revenue Across Customer Base - Aggregate - Spring 2023

Past Survey Results

Additional Reading

Complete Presentation: Market Kinetics – Operational Metrics – Spring 2023 (PDF) – Mouseover to Scroll 

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Source: ComplexDiscovery


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ComplexDiscovery is a premier online publication renowned for providing essential insights and intelligence in the realms of cybersecurity, information governance, and legal discovery to professionals navigating these fields. As a leading source of information, the publication expertly combines original research with aggregated news to cater to a highly specialized audience. Committed to enhancing readers’ understanding of relevant topics, ComplexDiscovery stands as an impartial and comprehensive resource for exploring trends, technologies, and services associated with electronically stored information.

The driving force behind this influential publication is ComplexDiscovery OÜ, a technology marketing firm that excels in strategic planning and tactical execution for organizations operating within these sectors. Registered as a private limited company in Estonia, a global leader in digital advancements, ComplexDiscovery OÜ dedicates its primary focus to supporting the publication. The company capitalizes on its virtual presence to provide marketing consulting and services to a diverse array of clients around the world, further solidifying its reputation as a leading voice in the eDiscovery ecosystem.

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