NYSE$LAW

CS Disco Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Announced first quarter 2023 financial results with total revenue of $33.1 million, a year over year decrease of 4%.

CS Disco's first quarter 2023 revenue was $33.1 million, a 4% decrease year-over-year. The company announced the expansion of its operational footprint into India and several new products and features, including the upcoming launch of its AI chatbot, Cecilia.

  • 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.
  • DISCO grew to 1,388 customers as of March 31, 2023.

Headline financials

Total Revenue

$33.1M

Previous: $34.5M-3.9%
EPS (adj)

-$0.20

Previous: -$0.15-33.3%
Capital Expenditures

-$844K

Previous: -$631K-33.8%
Free Cash Flow

-$21.2M

Previous: -$12.5M-69.9%
Net Income

-$20.4M

Previous: -$11.8M-71.9%
Operating Income

-$22.3M

Previous: -$11.8M-89.5%
Gross Profit

$24.9M

Previous: $25.5M-2.5%
Cash & Equivalents

$188M

Previous: $239M-21.4%
Total Assets

$241M

Previous: $281M-14.2%
Stock-Based Comp

$7.22M

Previous: $3.21M+125.3%

Revenue & EPS history

CS Disco · Revenue · Quarterly

$33.1M

Q1 2023-3.9%vs Q1 2022
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

DISCO is issuing the following outlook for the second quarter of 2023 and fiscal year 2023:

Tailwinds

  • Second quarter of 2023 revenue in the range of $31.0 - $33.0 million.
  • Second quarter of 2023 Adjusted EBITDA in the range of ($12.0) - ($10.0) million.
  • Fiscal year 2023 revenue in the range of $135.0 - $145.0 million.
  • Fiscal year 2023 Adjusted EBITDA in the range of ($40.0) - ($36.0) million.

Headwinds

  • 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 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.
  • DISCO expects the variability of the above charges to have a significant, and potentially unpredictable, impact on its future GAAP financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.3%

Avg return

Earnings day

+1.8%

Avg return

5 days after

-6.5%

Avg return

30 days after

48%

11 / 23 earnings

Positive

+29.5%

Q3 2022

Best reaction

-53.1%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-19.7%-20.3%-18.6%
Q4 2025-15.4%+8.0%+12.9%
Q3 2025+9.6%+14.0%+19.9%
Q1 2025+9.9%+11.6%+22.6%
Q4 2024+5.0%+0.4%-10.6%
Q3 2024-0.5%-1.5%-0.8%
Q2 2024-2.2%+0.4%-3.2%
Q1 2024-14.8%-14.0%-26.2%
Q4 2023-4.5%-6.7%+7.4%
Q3 2023-2.9%-7.4%+13.3%
Q2 2023+21.7%+12.5%+8.5%
Q1 2023-2.2%+2.0%+36.1%
Q4 2022-27.6%-23.1%-32.1%
Q3 2022+29.5%+26.4%-13.8%
Q2 2022-53.1%-49.5%-50.8%
Q1 2022+27.3%+21.2%-7.0%
Q4 2021+16.3%+22.3%+10.6%
Q3 2020-11.1%-5.4%-29.5%
Q3 2021-6.4%-9.8%-28.2%
Q2 2020+12.6%+12.8%-16.3%
Q1 2021+12.6%+12.8%-16.3%
Q4 2020+12.6%+12.8%-16.3%
Q2 2021+9.5%+21.0%-10.1%
Q1 2020

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