NYSE$LAW

CS Disco Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

CS Disco reported its financial results for the fourth quarter and fiscal year ended December 31, 2024.

DISCO reported a strong end to 2024 with a 4% increase in total revenue for the fourth quarter compared to the previous year. Software revenue also saw a 5% increase. Despite revenue growth, the company experienced a significant increase in GAAP net loss for the quarter.

  • Fourth quarter 2024 total revenue increased by 4% year-over-year to $37.0 million.
  • Software revenue for Q4 2024 grew by 5% compared to Q4 2023, reaching $30.8 million.
  • GAAP net loss for Q4 2024 was $25.2 million, a substantial increase from $5.8 million in Q4 2023.
  • Adjusted EBITDA for Q4 2024 was $(4.3) million, compared to $(1.0) million in Q4 2023.

Headline financials

Total Revenue

$37M

Previous: $35.7M+3.5%
EPS (adj)

-$0.07

Previous: -$0.01-600.0%
Net Income

-$25.2M

Previous: -$5.84M-331.5%
Operating Income

-$26.1M

Previous: -$7.68M-240.4%
Gross Profit

$27.5M

Previous: $27M+1.5%

Revenue & EPS history

CS Disco · Revenue · Quarterly

$37M

Q4 2024+3.5%vs Q4 2023
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

For the first quarter of 2025, DISCO expects software revenue between $30.1 million and $31.1 million, total revenue between $35.0 million and $37.0 million, and Adjusted EBITDA between $(8.0) million and $(6.0) million. For the full fiscal year 2025, the company anticipates software revenue between $124.0 million and $131.0 million, total revenue between $145.5 million and $157.5 million, and Adjusted EBITDA between $(19.0) million and $(15.0) million.

Tailwinds

  • Expected continued growth in software revenue for Q1 2025 and FY 2025.
  • Anticipated increase in total revenue for Q1 2025 and FY 2025.
  • Focus on driving innovation and improving execution to capitalize on opportunities.
  • Continued progress in growing platform reach and extending relationships with top-tier law firms and corporations.
  • Introduction of new product features like Reproductions and document-level Bates numbering to enhance offerings.

Headwinds

  • Expected negative Adjusted EBITDA for Q1 2025 and FY 2025.
  • Financial outlook is based on assumptions subject to change and outside of the company's control.
  • No assurance that DISCO will achieve the projected results.
  • Reconciliation of Adjusted EBITDA to GAAP net loss is not available due to high variability and complexity of excluded charges.
  • Unpredictable fluctuations in stock price directly impact equity compensation awards, leading to potential unpredictable impacts 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 Q4 2024

Historical avgQ4 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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