NYSE$LAW

CS Disco Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

CS Disco reported a revenue increase of 10% year-over-year and a reduced GAAP net loss compared to the same quarter last year.

CS Disco announced its Q4 2023 financial results, featuring a 10% increase in total revenue year-over-year, reaching $35.7 million. The company also reported a GAAP net loss of $5.8 million, significantly lower than the $18.7 million loss in Q4 2022. The customer base grew by 9% to 1,441 customers. Looking forward, DISCO provided its Q1 2024 revenue guidance in the range of $34.5 - $36.5 million.

  • Total revenue increased by 10% year-over-year to $35.7 million.
  • GAAP net loss improved to $5.8 million, compared to $18.7 million in the fourth quarter of 2022.
  • Adjusted EBITDA was ($1.0) million, improved from ($11.2) million in the fourth quarter of 2022.
  • Customer count grew by 9% year-over-year, reaching 1,441 customers.

Headline financials

Total Revenue

$35.7M

Previous: $32.5M+9.9%
EPS (adj)

-$0.01

Previous: -$0.18+94.4%
Adjusted EBITDA

-$1M

Previous: -$11.2M+91.1%
Adjusted EBITDA Margin

-3.0%

Previous: -34.0%+91.2%
Non-GAAP Gross Profit

$27.3M

No prior period
Non-GAAP Gross Margin

76.0%

No prior period
Non-GAAP R&D

$8.68M

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

24.0%

No prior period
Non-GAAP S&M

$13M

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

36.0%

No prior period
Non-GAAP G&A

$7.82M

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

22.0%

No prior period
Non-GAAP Operating Loss

-$2.16M

No prior period
Non-GAAP Operating Margin

-6.0%

No prior period
Capital Expenditures

-$1.27M

Previous: $651K-295.4%
Net Income

-$5.84M

Previous: -$18.7M+68.7%
Operating Income

-$7.68M

Previous: -$20M+61.7%
Gross Profit

$27M

Previous: $24.5M+10.6%
R&D Expense

$10.5M

No prior period
Stock-Based Comp

$4.95M

Previous: $7.34M-32.6%

Revenue & EPS history

CS Disco · Revenue · Quarterly

$35.7M

Q4 2023+9.9%vs Q4 2022
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

DISCO provided financial outlook for the first quarter and full year 2024.

Tailwinds

  • First quarter total revenue is expected to be in the range of $34.5 - $36.5 million.
  • First quarter software revenue is expected to be in the range of $29.5 - $30.5 million.
  • First quarter Adjusted EBITDA is expected to be in the range of ($8.0) - ($6.0) million.
  • Full year total revenue is expected to be in the range of $143.0 - $155.0 million.
  • Full year software revenue is expected to be in the range of $120.0 - $127.0 million.

Headwinds

  • Full year Adjusted EBITDA is expected to be in the range of ($26.0) - ($19.0) million.
  • First quarter and fiscal year 2024 financial outlook is based on assumptions that are subject to change.
  • Actual results may 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.

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 2023

Historical avgQ4 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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