CS Disco Earnings Call Transcripts
Fiscal Year 2025
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Q4 and FY25 saw double-digit revenue growth, margin improvement, and rapid AI adoption. New pricing and packaging are expected to drive further growth and profitability, with management targeting 20%+ growth and adjusted EBITDA breakeven by Q4 2026.
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Q3 2025 delivered 13% revenue growth and a significant improvement in adjusted EBITDA, driven by strong software sales, large matter growth, and increased AI adoption. Guidance for Q4 and FY2025 remains strong, with a continued focus on innovation and operational execution.
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Q2 2025 saw 12% software revenue growth and improved margins, driven by large, complex matters and strong AI product adoption. Guidance for revenue and adjusted EBITDA was raised, with a focus on enterprise customers and operational efficiency.
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Q1 2025 revenue grew 3% year-over-year to $36.7M, with strong growth in large customer accounts and AI product adoption. Full-year guidance was raised for revenue and adjusted EBITDA, reflecting confidence in strategic initiatives and resilient demand despite macro uncertainty.
Fiscal Year 2024
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Revenue grew 5% in 2024 to $144.8M, driven by large customer expansion and increased software adoption. Adjusted EBITDA improved, and the company targets breakeven by Q4 2026, with a focus on enterprise sales and AI innovation.
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Q3 2024 revenue grew 4% year-over-year to $36.3M, with software revenue up 6% and a net loss of $3.9M. Strategic focus shifted to larger customers, new leadership was added, and multi-year enterprise deals were signed. Cash position remains strong at $126.8M.
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Gen AI is revolutionizing legal document review by automating high-volume tasks, improving accuracy, and providing transparent, defensible results. Adoption is accelerating, with robust security and best practices ensuring effective implementation and measurable ROI.
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Q2 2024 revenue grew 5% year-over-year to $36M, with software revenue up 8% and services down 7%. Adjusted EBITDA and net loss both improved, and the company launched new AI-driven products while focusing on large law firm customers and operational enhancements.