NYSE$LAW

CS Disco Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported total revenue of $36.3 million, a year over year increase of 4%.

CS Disco reported a 4% increase in total revenue to $36.3 million for Q3 2024. The company's GAAP net loss was $9.2 million, compared to $1.0 million in the third quarter of 2023.

  • Total revenue was $36.3 million, up 4% compared to the third quarter of 2023.
  • Software revenue was $30.2 million, up 6% compared to the third quarter of 2023.
  • GAAP net loss was $9.2 million, compared to $1.0 million in the third quarter of 2023.
  • Adjusted EBITDA was $(4.5) million in the third quarter of 2024 and 2023.

Headline financials

Total Revenue

$36.3M

Previous: $34.9M+3.8%
EPS

-$0.15

Previous: -$0.06-150.0%
Adjusted EBITDA

-$4.5M

No prior period
Adjusted EBITDA Margin

-12.0%

No prior period
Non-GAAP Gross Profit

$27M

No prior period
Non-GAAP Gross Margin

74.0%

No prior period
Non-GAAP R&D

$11.1M

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

31.0%

No prior period
Non-GAAP S&M

$13.8M

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

38.0%

No prior period
Non-GAAP G&A

$7.72M

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

21.0%

No prior period
Non-GAAP Operating Loss

-$5.59M

No prior period
Non-GAAP Operating Margin

-15.0%

No prior period
Capital Expenditures

-$2.22M

Previous: -$3.59M+38.0%
Free Cash Flow

-$11.4M

Previous: -$4.62M-146.5%
Net Income

-$9.16M

Previous: -$1.03M-789.1%
Operating Income

-$10.9M

Previous: -$2.9M-275.5%
Gross Profit

$26.5M

Previous: $26M+2.0%
Cash & Equivalents

$76.5M

Previous: $158M-51.4%
Total Assets

$194M

Previous: $230M-15.6%
R&D Expense

$12.8M

Previous: $12.1M+5.7%
Stock-Based Comp

$5.15M

Previous: -$2.88M+278.7%

Revenue & EPS history

CS Disco · Revenue · Quarterly

$36.3M

Q3 2024+3.8%vs Q3 2023
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

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

Tailwinds

  • Software revenue in the range of $30.0 million - $31.0 million for Q4 2024.
  • Total revenue in the range of $35.2 million - $37.2 million for Q4 2024.
  • Adjusted EBITDA in the range of $(7.6) million - $(5.6) million for Q4 2024.
  • Software revenue guidance in the range of $119.4 million - $120.4 million for fiscal year 2024.
  • Total revenue guidance in the range of $143.0 million - $145.0 million for fiscal year 2024.

Headwinds

  • Adjusted EBITDA in the range of $(22.0) million - $(20.0) million for fiscal year 2024.
  • DISCO’s fourth 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 Q3 2024

Historical avgQ3 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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