NYSE$LAW

CS Disco Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

CS Disco's financial performance remained stable with a slight revenue increase and significant progress towards profitability.

CS Disco reported a 2% increase in total revenue, reaching $34.3 million. The company has made significant progress toward profitability with approximately 40% improvement in Adjusted EBITDA quarter over quarter. Customer count grew by 14% compared to the second quarter of 2022, reaching 1,431 customers.

  • Total revenue increased by 2% year-over-year, reaching $34.3 million.
  • GAAP net loss improved to $14.9 million, compared to $20.2 million in the second quarter of 2022.
  • Adjusted EBITDA improved to ($7.4) million, compared to ($12.4) million in the second quarter of 2022.
  • Customer count grew by 14% year-over-year, totaling 1,431 customers.

Headline financials

Total Revenue

$34.3M

Previous: $33.7M+1.7%
EPS (adj)

-$0.11

Previous: -$0.23+52.2%
Capital Expenditures

-$2.5M

Previous: -$1.87M-33.7%
Free Cash Flow

-$17.4M

Previous: -$22M+21.0%
Net Income

-$14.9M

Previous: -$20.2M+26.1%
Operating Income

-$17M

Previous: -$20M+14.9%
Gross Profit

$25.2M

Previous: $25.2M+0.1%
Cash & Equivalents

$179M

Previous: $228M-21.6%
Total Assets

$232M

Previous: $281M-17.4%
Stock-Based Comp

$6.87M

Previous: $5.52M+24.4%

Revenue & EPS history

CS Disco · Revenue · Quarterly

$34.3M

Q2 2023+1.7%vs Q2 2022
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

DISCO provided financial outlook for the third quarter and full year 2023.

Tailwinds

  • Third quarter revenue is expected to be in the range of $33.0 - $35.0 million.
  • Third quarter Adjusted EBITDA is expected to be in the range of ($8.0) - ($6.0) million.
  • Full year revenue is expected to be in the range of $135.0 - $145.0 million.
  • Full year Adjusted EBITDA is expected to be in the range of ($34.0) - ($30.0) million.
  • The company has scaled its business to over $130 million in revenue.

Headwinds

  • Third quarter and fiscal year 2023 financial outlook is based on assumptions that are subject to change.
  • Actual results may vary if assumptions change.
  • There is 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.
  • Variability of charges may have a significant and unpredictable impact on 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 Q2 2023

Historical avgQ2 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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