NYSE$LAW

CS Disco Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

CS Disco's Q2 2022 financial results were announced, with total revenue of $33.7 million, marking a 14% year-over-year increase.

CS Disco reported Q2 2022 financial results, showcasing a 14% year-over-year revenue increase to $33.7 million. The company's customer base grew by 27% year-over-year, reaching 1,255 customers. However, the GAAP net loss was $20.2 million, a significant increase compared to $3.1 million in the same quarter of the previous year. The company issued financial outlook for Q3 and full year 2022.

  • Total revenue reached $33.7 million, a 14% increase compared to Q2 2021.
  • GAAP net loss amounted to $20.2 million, compared to $3.1 million in Q2 2021.
  • Adjusted EBITDA was ($12.4) million, compared to ($1.6) million in Q2 2021.
  • Customer count increased to 1,255, representing a 27% year-over-year growth.

Headline financials

Total Revenue

$33.7M

Previous: $29.5M+14.1%
EPS (adj)

-$0.23

Previous: -$0.16-43.8%
Adjusted EBITDA

-$12.4M

No prior period
Capital Expenditures

-$1.87M

Previous: -$1.45M-29.1%
Free Cash Flow

-$22M

Previous: -$4.53M-386.5%
Net Income

-$20.2M

Previous: -$3.08M-554.3%
Operating Income

-$20M

Previous: -$2.97M-572.1%
Gross Profit

$25.2M

Previous: $20.9M+21.0%
Cash & Equivalents

$228M

Previous: $47M+385.2%
Total Assets

$281M

Previous: $78.9M+256.5%
Stock-Based Comp

$5.52M

Previous: $966K+471.6%

Revenue & EPS history

CS Disco · Revenue · Quarterly

$33.7M

Q2 2022+14.1%vs Q2 2021
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

DISCO issued financial outlook for the third quarter of 2022 and fiscal year 2022.

Tailwinds

  • Q3 2022 revenue is expected to be in the range of $32.0 - $34.0 million, representing year-over-year growth between 7% and 14%.
  • Full year 2022 revenue is projected to be in the range of $132.0 - $136.0 million, indicating year-over-year growth between 15% and 19%.
  • The company continues to innovate its full-stack solution, enhancing tools for customers to transform the practice of law.
  • The company opened a new headquarters in downtown Austin, Texas and a new office in New York, New York.
  • Kiwi Camara, Co-Founder and CEO of DISCO, was named an Entrepreneur of the Year® 2022 Central South Award finalist.

Headwinds

  • Q3 adjusted EBITDA is expected to be in the range of ($19.5) - ($17.5) million.
  • Full year 2022 adjusted EBITDA is projected to be in the range of ($60.0) - ($56.0) million.
  • The company's financial outlook is based on assumptions that are subject to change and outside of their control.
  • There can be no assurance that the company will achieve the expected results.
  • Reconciliation of Adjusted EBITDA on a forward-looking basis to net loss is not available without unreasonable efforts.

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 Q2 2022

Historical avgQ2 2022

+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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