NYSE$LAW

CS Disco Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced financial results for the fourth quarter and fiscal year ended December 31, 2022.

CS Disco's total revenue was $32.5 million, a decrease of 4% compared to the fourth quarter of 2021. GAAP net loss was $18.7 million, compared to $9.1 million in the fourth quarter of 2021. Adjusted EBITDA was ($11.2) million, compared to ($5.3) million in the fourth quarter of 2021.

  • Total revenue was $32.5 million, down 4% compared to the fourth quarter of 2021.
  • GAAP net loss was $18.7 million, compared to $9.1 million in the fourth quarter of 2021.
  • Adjusted EBITDA was ($11.2) million, compared to ($5.3) million in the fourth quarter of 2021.
  • Total revenue was $135.2 million, up 18% compared to fiscal year 2021.

Headline financials

Total Revenue

$32.5M

Previous: $33.8M-3.8%
EPS (adj)

-$0.18

Previous: -$0.10-80.0%
Adjusted EBITDA

-$11.2M

No prior period
Adjusted EBITDA Margin

-34.0%

No prior period
Capital Expenditures

$651K

Previous: $772K-15.7%
Free Cash Flow

-$10M

Previous: -$3.62M-176.6%
Net Income

-$18.7M

Previous: -$9.11M-105.2%
Operating Income

-$20M

Previous: -$8.95M-123.8%
Gross Profit

$24.5M

Previous: $25M-2.2%
Cash & Equivalents

$203M

Previous: $255M-20.4%
Total Assets

$256M

Previous: $287M-10.8%
Stock-Based Comp

$7.34M

Previous: $3.1M+137.3%

Revenue & EPS history

CS Disco · Revenue · Quarterly

$32.5M

Q4 2022-3.8%vs Q4 2021
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

DISCO is issuing the following outlook for the first quarter of 2023 and fiscal year 2023:

Tailwinds

  • Revenue in the range of $30.5 - $32.5 million for Q1 2023.
  • Adjusted EBITDA in the range of ($16.5) - ($14.5) million for Q1 2023.
  • Revenue in the range of $135.0 - $145.0 million for FY 2023.
  • Adjusted EBITDA in the range of ($42.0) - ($38.0) million for FY 2023.
  • First quarter and fiscal year 2023 financial outlook is based on a number of assumptions that are subject to change and many of which are outside of its control.

Headwinds

  • Actual results may vary from these assumptions.
  • Expectations may change if actual results vary from these assumptions.
  • 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.
  • Variability of the above charges to have a significant, and potentially unpredictable, impact on its 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 Q4 2022

Historical avgQ4 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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