What is the revenue and EPS growth rate for CS Disco year over year?

What is the market's earnings forecast for CS Disco next quarter?

What is CS Disco's latest dividend and current dividend yield?

What were the key takeaways from CS Disco’s earnings call?

What is CS Disco's gross profit margin?

What factors drove the changes in CS Disco's revenue and profit?

Did CS Disco beat or miss consensus estimates last quarter?

What does CS Disco do and what are its main business segments?

- **Revenue Growth**: Software up 17% YoY to $35.2M, driven by large multi-terabyte cases and AI adoption.
- **AI Innovation**: Cecilia AI usage tripled YoY; Auto Review adoption grew sequentially.
- **Financial Health**: 77% gross margin, $113.5M cash, and Q4 EBITDA target of -$3.5M to -$1.5M.
- **Strategic Focus**: Targeting high-stakes IP litigation and complex matters with tight timelines.
- **Future Outlook**: On track for Q4 2026 EBITDA breakeven, with potential for earlier profitability.


**【Management Remarks】**
- Presented Q3 2025 financial results and forward-looking statements, emphasizing revenue growth and operational execution.
- Highlighted the company's focus on large multi-terabyte matters and generative AI capabilities.
- Discussed the contingent case contributing $1.3M in Q3 revenue.

**【CEO Commentary】**
- **Revenue Growth**: Software revenue up 17% YoY to $35.2M, total revenue $40.9M (13% YoY). Excluding the contingent case, growth was 13% (software) and 9% (total).
- **Customer Success**: 326 customers with >$100K ARR (76% of revenue). A large customer chose DISCO for a 10+ TB case due to platform scalability and AI-driven efficiency.
- **AI Adoption**: Cecilia AI usage tripled YoY; Auto Review adoption grew sequentially.
- **Market Recognition**: Named a leader in IDC MarketScape for eDiscovery software.
- **IP Litigation Focus**: Initiative targeting high-stakes, complex cases with tight timelines, leveraging AI for speed and accuracy.

**【CFO Financial Commentary】**
- **Gross Margin**: 77% (vs. 74% prior year).
- **Expenses**: Sales & marketing down 33% of revenue (vs. 38% prior year); R&D up 28% of revenue (vs. 31% prior year).
- **Adjusted EBITDA**: -$0.3M (1% margin), improving from -12% YoY.
- **Cash Position**: $113.5M in cash with no debt.
- **Q4 Guidance**: Total revenue $38.75M-$40.75M; software $33.75M-$34.75M. EBITDA target: -$3.5M to -$1.5M.

**【Q&A Highlights】**
- **Contingent Cases**: Rare but impactful; 1-2 such cases annually. Q3 case was unique in size and timing.
- **EBITDA Breakeven**: Targeting Q4 2026, with potential for earlier profitability if investments accelerate growth.
- **Investment Strategy**: Balancing growth, innovation, and margin improvement.


CS Disco, Inc. (LAW) Q3 2025 Earnings Call Transcript

- **Revenue Acceleration**: Software +12% YoY to $32.7M, driven by multi-terabyte matters and AI adoption. EBITDA improved 500bps to -7% margin.
- **AI Breakthroughs**: Auto Review tags 32,000 docs/hour (90% accuracy), Cecilia sees 150% YoY growth in large cases. EU Auto Review launch shows global expansion.
- **Operational Excellence**: 36% S&M expense ratio, 31% R&D investment, 19% G&A savings. 50% contract simplification cuts sales friction.
- **CFO Transition**: Michael Lafair exits by end-2025; search underway. Q4 2026 EBITDA breakeven target remains on track.
- **Growth Catalysts**: 323 large customers (+6% YoY), 60% new software from upsell, 32% AmLaw 200 penetration. Auto Review reduces review teams by 80%.

**【CEO Summary Section】**
- **Revenue Growth**: Software revenue reached $32.7 million (+12% YoY), total revenue $38.1 million (+6% YoY). Adjusted EBITDA improved to -$2.7 million (from -$4.4 million YoY), with a 7% EBITDA margin improvement.
- **Large Matters Focus**: 323 customers contributed >$100k in 12-month revenue (+6% YoY). Multi-terabyte matters grew, e.g., a 10TB/43M-document case resolved using DISCO's AI and data recovery tools.
- **AI Product Success**: Auto Review achieved 32,000 docs/hour tagging (90%+ accuracy vs. 75% industry standard). Cecilia saw 150% YoY growth in multi-terabyte matters, with 900+ databases now using it.
- **Operational Efficiency**: Simplified contracts reduced sales bottlenecks; automated HR processes cut administrative time by 50%.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net loss $2.8 million (-7% of revenue vs. -12% YoY). Cash balance $114.5 million. Q3 2025 guidance: $37.5-39.5M total revenue, $32.75-33.75M software revenue. FY2025: $148-158M total, $128-134M software.
- **Expense Management**: S&M expenses down 36% of revenue (vs. 40% YoY). R&D up 31% of revenue (vs. 30% YoY) due to product innovation. G&A down 19% of revenue (vs. 22% YoY).
- **CFO Transition**: Michael Lafair stepping down as CFO by end-2025; search underway for successor.

**【Q&A Key Highlights】**
- **Go-to-Market Strategy**: Shift to account-based model with territory orchestration, focusing on large customers. 60% of new software revenue from existing customers.
- **Services Role**: Services (e.g., project management, forensics) are used to win larger matters, not as a profit center. Example: U.K. firm tripled software spend after learning about DISCO's services.
- **EBITDA Path**: Target Q4 2026 EBITDA breakeven via revenue growth (20%+ potential) and expense discipline. Q2 beat high-end guidance by $2M EBITDA.
- **AI Uptake**: Auto Review adoption strong in EU/U.S., with clients reducing review teams by 80%. Cecilia used in live trials and depositions, driving stickiness.
- **Market Position**: 32% of U.S. AmLaw 200 firms now use DISCO, up from 20% in 2024.

CS Disco, Inc. (LAW) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: Q1 total revenue $36.7M (+3% YoY), driven by 8% YoY increase in high-value customers. 
- **AI Success**: Cecilia Q&A customers grew 5x YoY; Auto Review achieves 3,800 docs/hour processing. 
- **Financial Health**: $118.8M cash, Adj. EBITDA improving 14% QoQ. 
- **Future Outlook**: FY25 revenue guidance raised to $146-158M, targeting EBITDA breakeven by Q4 2026. 
- **Resilience Play**: 80% of pipeline in >$100k customers with 10-15% wallet share, mitigating macro risk. 
- **Operational Efficiency**: 75% gross margin, 36% S&M as % of rev (down 5% YoY). 


**【CEO Summary Section】**
- **Q1 Financial Highlights**: Total revenue of $36.7 million (+3% YoY), software revenue $30.9 million (+3% YoY), Adjusted EBITDA of -$5.1 million (14% improvement vs. prior quarter). 
- **Customer Growth**: 318+ customers spending >$100k annually (+8% YoY), representing 76% of total revenue. 
- **AI Product Momentum**: Cecilia Q&A customers grew 5x YoY; Auto Review achieved 3,800 docs/hour processing speed, matching 140-person review team. 
- **Strategic Renewals**: Law firm Munsch Hardt renewed 3-year subscription with doubled commitment, citing DISCO's AI-driven efficiency in complex matters. 
- **Market Positioning**: Emphasized 'With You In Every Case' value proposition, combining self-service platform with expert services for 24/7 legal support. 

**【CFO Financial Commentary】**
- **Gross Margin**: 75% (stable vs. prior quarter). 
- **Expense Management**: 
  - Sales & Marketing: $13.2M (36% of rev, -5% YoY as % of rev) 
  - R&D: $12.2M (33% of rev, +5% YoY as % of rev) 
  - G&A: $8.4M (23% of rev, -2% YoY as % of rev) 
- **Cash Position**: $118.8M in cash, no debt. 
- **Q2 Guidance**: Revenue $36.5-38.5M, Adj. EBITDA -$5.5M to -$3.5M. 
- **FY25 Outlook**: Total rev $146-158M, Adj. EBITDA -$18M to -$15M (up from prior guidance). 

**【Q&A Key Takeaways】**
1. **Growth Strategy**: 
  - Focus on >$100k customers (80% of pipeline) with 10-15% wallet share penetration. 
  - Account-based marketing + in-person events (e.g., Legalweek, CLOC). 
2. **Macroeconomic Resilience**: 
  - Litigation volume tends to increase in downturns (bankruptcy, securities cases). 
  - Targeting matters with >100M docs to reduce exposure to economic cycles. 
3. **Cost Leverage**: 
  - 2026 EBITDA breakeven target maintained. 
  - Flexible to adjust R&D/S&M spend if needed, but prioritizing long-term growth. 
4. **AI Differentiation**: 
  - Cecilia Auto Review 97% recall/71% precision in 200k-doc review, vs. industry 70-80% standard. 
  - New features: Cecilia Definitions, Slack/Apple document support, 24-hour matter setup. 


CS Disco (LAW)-7 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: FY2024 total revenue $144.8M (+5% YoY), driven by 7% software growth.
- **Customer Expansion**: 9% YoY increase in >$100k customers, 19 >$1M clients, and 17% multi-product attach rate.
- **AI Success**: Cecilia Q&A adoption doubled YoY, cutting review time by 50% in large matters.
- **Financial Target**: Breakeven adjusted EBITDA by Q4 2026, with FY2025 EBITDA guidance of -$19M to -$15M.
- **Sales Strategy**: 90%+ of growth from >$100k customers, with new enterprise reps 80%+ productive.


**【CEO Executive Summary】**
- Fiscal 2024 total revenue reached $144.8 million (+5% YoY), with software revenue at $120.1 million (+7% YoY). Services revenue was $24.7 million (-4% YoY) due to review usage decline.
- Key metrics: 315+ customers >$100k in revenue (+9% YoY), 19 customers >$1M in revenue, and 17% multi-product attach rate (including Cecilia AI tools).
- Dollar-based net retention (DNR) improved to 96% (from 92%), with software DNR at 100%.
- Strategic focus: 
  1. Customer-centric go-to-market with enterprise sales restructuring
  2. Product innovation (e.g., advanced production workflows, Cecilia Q&A)
  3. Operational efficiency and cultural transformation
- Target: Breakeven adjusted EBITDA by Q4 2026.

**【CFO Financial Highlights】**
- Q4 2024 total revenue: $37.0 million (+4% YoY). Software: $30.8 million (+5% YoY). Services: $6.2 million (-4% YoY).
- FY2024 gross margin: 75% (stable vs. prior year). 
- Operating expenses: 
  - Sales & marketing: $56.7M (39% of revenue, -12% YoY)
  - R&D: $43.8M (30% of revenue, +4% YoY)
  - G&A: $31.8M (22% of revenue, +5% YoY)
- Adjusted EBITDA: -$18.7M (13% margin improvement vs. -19% in 2023).
- FY2025 guidance: Total revenue $145.5M-$257.5M, adjusted EBITDA -$19M to -$15M.

**【Q&A Key Takeaways】**
1. **AI Adoption**: Cecilia Q&A adoption doubled YoY, with Orrick reducing review time by 50% in complex matters. 
2. **Customer Focus**: 90%+ of revenue growth came from >$100k customers, with 150%+ spend growth from a $40B analytics firm.
3. **Breakeven Path**: CFO reaffirmed Q4 2026 breakeven target, citing efficiency gains and focus on high-margin software.
4. **Sales Team Maturity**: New enterprise sales reps are ~80%+ productive, with full ramp-up expected by mid-2025.


LAW

LAW fundamentals

Earnings Call

You can ask Aime