CS Disco Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
CS Disco, Inc. Reports Second Quarter 2024 Financial Results
CS Disco, Inc. ("DISCO") (NYSE:LAW) announced its financial results for the second quarter ended June 30, 2024. The summary of the key financial metrics and performance details are as follows:
Key Financial Metrics
| Metric | Q2 2023 | Q2 2024 | YoY % Change | Consensus Estimate | Q2 2024 vs Consensus |
|---|---|---|---|---|---|
| Total Revenue | $34.29M | $36.00M | +5% | $35.61M | +1.1% |
| EPS | N/A | $-0.09 | N/A | $-0.32 | N/A |
| GAAP Net Loss | $14.9M | $10.8M | -27.5% | N/A | N/A |
| Adjusted EBITDA | $(7.4)M | $(4.7)M | N/A | N/A | N/A |
Interpretation : DISCO showed a resilient performance with a 5% increase in total revenue year-over-year, reaching $36.0 million, exceeding consensus estimates slightly by 1.1%. The company also succeeded in reducing its GAAP net loss significantly from $14.9 million to $10.8 million and improving its Adjusted EBITDA from $(7.4) million to $(4.7) million.
Revenue Performance by Segment
| Segment | Q2 2023 | Q2 2024 | YoY % Change | Previous Guidance |
|---|---|---|---|---|
| Software Revenue | $27.13M | $29.3M | +8% | N/A |
| Total Revenue | $34.29M | $36.0M | +5% | N/A |
Interpretation : Software revenue grew by 8% year-over-year, amounting to $29.3 million, indicating strong demand for DISCO’s offerings. This solid performance in the software segment bolstered the company’s overall revenue growth.
Key Operational Data
| Metric | Q2 2023 | Q2 2024 | YoY Change |
|---|---|---|---|
| Customer Count | N/A | 1,449 | N/A |
| New Features | N/A | Mass Redactions, Cecilia Doc Summaries | N/A |
Executive Commentary
Eric Friedrichsen, Chief Executive Officer of DISCO, emphasized his optimism about the company’s direction, driven by record-breaking revenue and newly introduced product features. Friedrichsen’s confidence stems from his direct interactions with major clients and assessing the company's solid market position.
Shareholder Returns
No dividends or share repurchase programs were announced in this quarter's report.
Forward Guidance
DISCO provided forward guidance for the third quarter and full year of 2024: - Third Quarter 2024 : - Software Revenue: $29.5M - $30.5M - Total Revenue: $35.3M - $37.3M - Adjusted EBITDA: $(7.0)M - $(5.0)M
- Fiscal Year 2024 :
- Software Revenue: $118.5M - $120.5M
- Total Revenue: $143M - $147M
- Adjusted EBITDA: $(23.0)M - $(19.0)M
Stock Price Movement
Post-earnings release, DISCO shares experienced a slight uptick of approximately 0.19%, reflecting a stable market reaction to the financial results and guidance provided.
Overall, DISCO has demonstrated solid performance in the second quarter of 2024, with strategic advancements in software offerings and a cautious yet optimistic outlook for the upcoming periods.