Content Assessment: Time to Question Cecilia? DISCO Announces First Quarter 2023 Financial Results
Information - 93%
Insight - 93%
Relevance - 91%
Objectivity - 87%
Authority - 92%
A short percentage-based assessment of the qualitative benefit of the recent first quarter 2023 financial results from eDiscovery software provider DISCO.
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Background Note: CS Disco, Inc., also known as DISCO, reported a year-over-year decrease of 4% in its total revenue for Q1 2023, which amounted to $33.1 million. The company’s GAAP net loss was $20.4 million, compared to $11.8 million in Q1 2022, and the Adjusted EBITDA was ($13.0) million, compared to ($7.8) million in the same period last year. Despite the financial decrease, the company experienced several milestones during this quarter, including the expansion into India and the announcement of new products and features. One significant development is the upcoming launch of Cecilia, an AI chatbot designed to assist lawyers in legal queries, further demonstrating DISCO’s commitment to leading AI advancement in the legal industry.
Press Announcement Extract*
DISCO Announces First Quarter 2023 Financial Results
Total Revenue of $33.1 Million, A Year over Year Decrease of 4%
CS Disco, Inc. (“DISCO”) (NYSE: LAW) today announced financial results for its first quarter ended March 31, 2023.
“This was an exciting quarter for DISCO as we announced the expansion of our operational footprint into India and several new products and features, including the upcoming launch of our AI chatbot, Cecilia,” said Kiwi Camara, DISCO Co-Founder and CEO. “Cecilia will allow lawyers to ask questions and receive answers with specific document citations related to their matter and is the latest development in how DISCO leverages AI to help customers ‘law better’. With the rapid growth of large language models and other AI technologies, DISCO is committed to embracing this technological shift and being the leader in AI for the legal industry, empowering our customers to achieve superior outcomes.”
First Quarter 2023 Financial Highlights:
- Total revenue was $33.1 million, down 4% compared to the first quarter of 2022.
- GAAP net loss was $20.4 million, compared to $11.8 million in the first quarter of 2022.
- Adjusted EBITDA was ($13.0) million, compared to ($7.8) million in the first quarter of 2022.
Recent Business Highlights:
- Customer Count: DISCO grew to 1,388 customers as of March 31, 2023.
- Announcement of Cecilia: DISCO announced the upcoming launch of Cecilia, an integrated AI chatbot for large-scale ediscovery that allows lawyers to learn about facts and information in their private DISCO Ediscovery database more efficiently.
- Timelines for Case Builder: DISCO announced the release of Timelines in Case Builder, allowing teams to build and collaborate on end-to-end storyboards of what transpired in a legal matter, complete with links to depositions and evidence in DISCO Ediscovery.
- Expansion of Global Footprint: DISCO opened an office in Gurugram, India to allow for expansion of services and enhance DISCO’s capabilities to provide 24/7 professional support to customers globally.
Second Quarter and Full Year 2023 Financial Outlook
As of May 10, 2023, DISCO is issuing the following outlook for the second quarter of 2023 and fiscal year 2023:
Second quarter of 2023:
- Revenue in the range of $31.0 – $33.0 million.
- Adjusted EBITDA in the range of ($12.0) – ($10.0) million.
Fiscal year 2023:
- Revenue in the range of $135.0 – $145.0 million.
- Adjusted EBITDA in the range of ($40.0) – ($36.0) million.
DISCO’s second quarter and fiscal year 2023 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, May 10, 2023, to discuss its first quarter 2023 financial results and business highlights. The conference call can be accessed by dialing (888) 300-4030 from the United States or +1 (646) 970-1443 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 Wednesday, May 31, 2023, 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.
DISCO (NYSE: LAW) provides a cloud-native, artificial intelligence-powered legal solution that simplifies legal hold, legal request, 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 ScrollDISCO-Announces-First-Quarter-2023-Financial-Results
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