NYSE$LAW

CS Disco Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

CS Disco reported record-breaking revenue and a 10% year-over-year increase in customer count.

CS Disco's total revenue reached $34.9 million, a 1% increase compared to the third quarter of 2022. The company's GAAP net loss was $1.0 million, significantly improved from the $20.1 million loss in the same period last year.

  • Total revenue was $34.9 million, up 1% year-over-year.
  • GAAP net loss improved to $1.0 million, compared to $20.1 million in Q3 2022.
  • Adjusted EBITDA was ($4.5) million, an improvement from ($13.1) million in the third quarter of 2022.
  • Customer count grew to 1,449, a 10% increase compared to Q3 2022.

Headline financials

Total Revenue

$34.9M

Previous: $34.5M+1.4%
EPS (adj)

-$0.06

Previous: -$0.24+75.0%
Capital Expenditures

-$3.59M

Previous: -$3.73M+3.8%
Free Cash Flow

-$4.62M

Previous: -$23.8M+80.6%
Net Income

-$1.03M

Previous: -$20.1M+94.9%
Operating Income

-$2.9M

Previous: -$20.1M+85.6%
Gross Profit

$26M

Previous: $25.8M+0.6%
Cash & Equivalents

$158M

Previous: $213M-26.0%
Total Assets

$230M

Previous: $267M-13.8%
R&D Expense

$12.1M

No prior period
Stock-Based Comp

-$2.88M

Previous: $5.67M-150.9%

Revenue & EPS history

CS Disco · Revenue · Quarterly

$34.9M

Q3 2023+1.4%vs Q3 2022
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

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

Tailwinds

  • Revenue is expected to be in the range of $34.0 - $36.0 million for Q4 2023.
  • Adjusted EBITDA is projected to be in the range of ($7.0) - ($5.0) million for Q4 2023.
  • Full year 2023 revenue is anticipated to be in the range of $136.3 - $138.3 million.
  • Adjusted EBITDA for the full year 2023 is expected to be in the range of ($31.9) - ($29.9) million.
  • Company anticipates integrating primary law into its solution to automate drafting of legal documents and research memos.

Headwinds

  • Financial outlook is based on assumptions that are subject to change and are outside of DISCO's control.
  • Actual results may vary from the provided assumptions.
  • There is no assurance that DISCO will achieve the expected results.
  • Reconciliation of Adjusted EBITDA on a forward-looking basis to net loss is not available without unreasonable efforts.
  • Variability of charges, including stock-based compensation, can 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 Q3 2023

Historical avgQ3 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro