NYSE$LAW

CS Disco Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported total revenue of $36.0 million, a year-over-year increase of 5%.

CS Disco, Inc. announced its second quarter 2024 financial results, with total revenue reaching $36.0 million, a 5% increase compared to the second quarter of 2023. The company's GAAP net loss was $10.8 million, an improvement from the $14.9 million loss in the same period last year. Adjusted EBITDA was $(4.7) million, also an improvement from $(7.4) million in the second quarter of 2023.

  • Total revenue was $36.0 million, up 5% year-over-year.
  • Software revenue was $29.3 million, up 8% compared to the second quarter of 2023.
  • GAAP net loss was $10.8 million, compared to $14.9 million in the second quarter of 2023.
  • Adjusted EBITDA was $(4.7) million, compared to $(7.4) million in the second quarter of 2023.

Headline financials

Total Revenue

$36M

Previous: $34.3M+5.0%
EPS

-$0.18

Previous: -$0.11-63.6%
Adjusted EBITDA

-$4.74M

No prior period
Adjusted EBITDA Margin

-13.0%

No prior period
Non-GAAP Gross Profit

$27.1M

No prior period
Non-GAAP Gross Margin

75.0%

No prior period
Non-GAAP R&D

$10.8M

No prior period
Non-GAAP R&D % of Revenue

30.0%

No prior period
Non-GAAP S&M

$14.3M

No prior period
Non-GAAP S&M % of Revenue

40.0%

No prior period
Non-GAAP G&A

$7.96M

No prior period
Non-GAAP G&A % of Revenue

22.0%

No prior period
Non-GAAP Operating Loss

-$5.94M

No prior period
Non-GAAP Operating Margin

-17.0%

No prior period
Capital Expenditures

-$1.35M

Previous: -$2.5M+46.1%
Free Cash Flow

-$12.2M

Previous: -$17.4M+30.0%
Net Income

-$10.8M

Previous: -$14.9M+27.4%
Operating Income

-$12.4M

Previous: -$17M+27.1%
Gross Profit

$26.7M

Previous: $25.2M+5.9%
Cash & Equivalents

$130M

Previous: $179M-27.3%
Total Assets

$198M

Previous: $232M-14.8%
R&D Expense

$12.9M

No prior period
Stock-Based Comp

$6.06M

Previous: $6.87M-11.8%

Revenue & EPS history

CS Disco · Revenue · Quarterly

$36M

Q2 2024+5%vs Q2 2023
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

DISCO is issuing the following outlook for the third quarter of 2024 and fiscal year 2024:

Tailwinds

  • Software revenue in the range of $29.5 million - $30.5 million for Q3 2024.
  • Total revenue in the range of $35.3 million - $37.3 million for Q3 2024.
  • Adjusted EBITDA in the range of $(7.0) million - $(5.0) million for Q3 2024.
  • Software revenue guidance in the range of $118.5 million - $120.5 million for fiscal year 2024.
  • Total revenue guidance in the range of $143.0 million - $147.0 million for fiscal year 2024.

Headwinds

  • Adjusted EBITDA in the range of $(23.0) million - $(19.0) million for fiscal year 2024.
  • DISCO’s third quarter and fiscal year 2024 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.

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 2024

Historical avgQ2 2024

+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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