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Press Announcement Extract (May 12, 2022)

DISCO Announces First Quarter 2022 Financial Results

Total Revenue of $34.5 Million, a Year over Year Increase of 63%

CS Disco, Inc. (“DISCO”) (NYSE: LAW) today announced financial results for its first quarter ended March 31, 2022.

“This quarter marked a milestone for DISCO with our first acquisition, bringing legal hold workflow technologies into our product portfolio and meeting our customers’ demand to continue to deliver solutions beyond ediscovery,” said Kiwi Camara, Co-Founder and CEO of DISCO. “In addition, our impressive results and growth continue to demonstrate how the market is embracing the shift from on-premise software to cloud software, the shift away from services to software-based solutions, and the adoption of artificial intelligence to improve legal outcomes.”

First Quarter 2022 Financial Highlights:

  • Total revenue was $34.5 million, up 63% compared to the first quarter of 2021.
  • GAAP net loss was $11.8 million, compared to $2.9 million in the first quarter of 2021.
  • Adjusted EBITDA was ($7.8) million, compared to ($1.9) million in the first quarter of 2021.

Recent Business Highlights:

  • Legal Hold Acquisition: DISCO acquired legal hold workflow solutions from Congruity360, LLC in exchange for cash and contingent consideration. These critical legal workflow capabilities will integrate with DISCO’s market-leading cloud-based ediscovery platform and provide a modern, digital solution for legal hold obligations and legal request compliance.
  • Early Matters Greater Austin: DISCO was selected as a Best Place for Working Parents in Austin by Early Matters Greater Austin.

First Quarter and Full Year 2022 Financial Outlook

As of May 12, 2022, DISCO is issuing the following outlook for the second quarter of 2022 and fiscal year 2022:

Second quarter of 2022:

  • Revenue in the range of $32.0 – $34.0 million, representing year-over-year growth between 8% and 15%.
  • Adjusted EBITDA in the range of ($17.0) – ($15.0) million.

Fiscal year 2022:

  • Revenue in the range of $149.0 – $153.0 million, representing year-over-year growth between 30% and 34%.
  • Adjusted EBITDA in the range of ($51.5) – ($43.5) million.

DISCO’s second quarter and fiscal year 2022 financial outlook is based on a number of assumptions that are subject to change and many of which are outside of our control. If actual results vary from these assumptions, our expectations may change. There can be no assurance that we will achieve these results.

Reconciliation of Adjusted EBITDA on a forward-looking basis to the most directly comparable GAAP measure 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; in particular, the effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Conference Call Information

DISCO will host a conference call and webcast at 4:00 p.m. CT (5:00 p.m. ET) today, May 12, 2022, to discuss its first quarter 2022 financial results and business highlights. The conference call can be accessed by dialing (888) 550-5431 from the United States or +1 (646) 960-0807 internationally with conference ID 8394292. The live webcast of the conference call and other materials related to DISCO’s financial performance can be accessed from DISCO’s investor relations website at ir.csdisco.com.

Following the completion of the call until 10:59 p.m. CT (11:59 p.m. ET) on Thursday, June 2, 2022, a telephone replay will be available by dialing (800) 770-2030 from the United States, +1 (647) 362-9199 internationally with conference ID 8394292. A webcast replay will also be available at ir.csdisco.com for 12 months.

About DISCO

DISCO (NYSE: LAW) provides a cloud-native, artificial intelligence-powered legal solution that simplifies ediscovery, legal document review and case management for enterprises, law firms, legal services providers and governments. Our scalable, integrated solution enables legal departments to easily collect, process and review enterprise data that is relevant or potentially relevant to legal matters.

Read the original announcement.


Complete Announcement with Tables (PDF) – Mouseover to Scroll

ir.csdisco.com-CS Disco Inc – DISCO Announces First Quarter 2022 Financial Results


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Source: ComplexDiscovery

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