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

What guidance did CS Disco's management provide for the next earnings period?

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

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

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

Did CS Disco beat or miss consensus estimates last quarter?

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

What is CS Disco's gross profit margin?

- **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.


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