LAW - Earnings call 4 2023

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to CS Disco's Fourth Quarter and Fiscal Year 2023 Conference Call. [Operator Instructions]

I would now like to hand the conference over to your first speaker today, Head of Investor Relations, Aleksey Lakchakov.

Aleksey Lakchakov

Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Disco's fourth quarter and fiscal year 2023. With me on today's call are Scott Hill, Disco's Chief Executive Officer; and Michael Lafair, Disco's Chief Financial Officer.

limited forward-looking of the Reform technology future the XXXX, opportunities but in include safe of Act developments performance, will our and product including, provisions regarding strategy expenditures, industry. harbor Private not market our call future statements and legal market meaning within the of financial capital Today's outlook statements opportunity, our position, to, the Securities growth Litigation and

and earnings addition Relations of a our filings remarks, release, In found website Investor replay our call our press be to ir.csdisco.com. can today's SEC prepared on at

statements and those our to cause Forward-looking forward-looking or and known or materially be involve the unknown expressed uncertainties that achievements performance results, risks implied may from different by actual statements.

and Form made. quarter upcoming the beliefs ended annual quarterly XXXX. Form to affect from as SEC XXXX, XX, Forward-looking company's time, in company's that the is the could SEC the filed XX, for the and XX-K our assumptions Information on November Risk company's factors for filings section the statements date financial ended XX-Q report report results and its time including the included with XXXX, December management's of September X, on the only with represent Factors on year the on titled

release. call, a for prepared between substitute GAAP or is their limitations equivalents In financial Reconciliation non-GAAP closest GAAP. the versus earnings measures. of measures discuss a and not financial in in today's will with performance accordance measures of our available measures addition, These non-GAAP during are in non-GAAP superior we and financial and using discussion GAAP to non-GAAP financial addition measures of to,

the to Scott. to call With that, like turn I'd over

Scott Hill

prior XXXX. up like million. a revenue to year quarter was million, on $XX.X to X% last to $XXX.X the Fourth would strong for total Full to turning few I total year. year end comments our increased revenue versus from with objectives Aleksey. XX% Thanks, XXXX before a start XXXX

revenues, offerings, quarter. eDiscovery $XX.X and other Software product the from fourth which software to X% in grew revenues include million

software X,XXX customers as X% For than $XXX.X year X% full XXXX, grew more million. year, a to the revenue ago. of XX, is which December We had

Importantly, we XXXX. customers XXXX, The than than who compared $X generated in to up number X% in more nearly $XXX,XXX revenues XXX of XXXX. $XX generated also to revenue million that during million customers had more expanded in

saw to XX% we at end rates Finally, of at XX% end attach improved up XXXX, of the the multiproduct from XXXX.

our EBITDA million million. room have adjusted money our year more were expansion additional $X.X in spending in from negative more base. Services fourth Disco XXXX We revenues, include which for more buying and existing $XX.X the of is $X services there million, year. products. million. QX and customers negative revenue customer Fiscal flat meaningful the We year believe professional review XXXX quarter. adjusted Full from was EBITDA services, was $XX.X prior was revenues

software business We with ended but year. the was saw to within of the exiting just XXXX million sheet. Disco, the on return growth balance our our $XXX for change in with year we're cash year a we pleased under

that under As we to our and we're capabilities building to innovative importantly, revenue our to on leadership And Chief critical we're stronger our sustaining be framework believe turn enhance Herckis, profitability. strengthening our continuing Human a operating our and efficiency we product our facility including Resources Karen to focused to our success. reaccelerate XXXX, advancing foundation Officer, the strong will offerings, of growth, software improve investing cultural

momentum. I'm solid that to team leadership year. We focused a team revenue. that struggled very reaccelerate distractions place and And the the end and we XXXX, I'm motivated confident to with continuing number with but importantly, and of executed during the proud a in of start Let's how build delivered have on of

that exiting across fortunate over to segments, in Vice XX we're legal step led in of a great hit deploying The years of base products. portion developing having President XX% market, the and large sales industry our have have sales the Andrea a at Sales. we our of a to is over growing note, experience above teams news Andrea right now a execution brings believe taken the our retention XXX% all that Nexus has to greater back ground improved particular we as that of Popovecz always agreed sales initiatives. improve customer sprint number dollar-based are Global and Senior our a full key and net years and accelerated already She steps for Epic. I Of XXXX, XX significant industry-leading and addressable Lexus we over at approach number X XXXX. years of had drive and from capture opportunity. Entering at software

sales bifurcated developing are into We have our that groups. those distinct profiles customers motions the and nature specific reflect of better

these reflect needs. reorganized have to groupings We their sales our and team

more to our a our pricing and committed We've enhanced channel plan, constructive sales strategy. partnership refined

have services customers. these at to functions existing do. customers Customer the both and We will improve and initiatives combined our success NPS and consistent revenue growth We across customer reposition Melanie our of leadership enable center Antoon's also Chief Officer, scores new believe and as customer our we satisfaction under what

we among as leads survey Jay platform common to us a that better now We our growth. in of now awareness for platforms. signs across do of awareness, investments technology customer we all and e-discovery have XXXX and year, of already received sales professionals the of brand In hear have seen searches converting and we lead their this and cited competitors. It's support campaign million for are Since progress. job Disco must marketing third-party and triple, indicated the over over of the mention into begin revenue new and are in last initiatives, very they the we most Lady our U.S.-based first organic seeing of journey. are customers Lady increased Disco million we X,XXX views refining legal A launch XX J various generation, impressions these XX.X campaign

Our offering pace, e-discovery legal developing product platforms, at enhance efforts job AI continuing of also Cecilia are unprecedented further doing builder, also by sales a and case including innovative and our our requests. and capabilities hold supporting our an engineering industry-leading teams great to market-leading our while

help contributor large to the they the in They foundation Cecilia could Cecilia documents corporate quality isn't certainly some told database capabilities. innovation working started Cecilia. law demonstrates we XXXX clicks, demonstrated industry. partner generally Cecilia. tight a them Cecilia our himself find growth to X.X deadline. now in it to revenue, from Cecilia we were at receiving of a our using lead but mentioned able with With specific accelerate the to over get are questions are same also very enhance it new end opening Cecilia the sign expected we with that for very imperative early of advancing client It also invest by able law we several and save future the were to continue team easier to ultimately why available execute of great It a innovative in combination were use million that was customers U.S., and laying customers large leading hours believe a us Q&A and they the he our time. This benefits already offering, eDiscovery it firm to us founding answers is legal the The are firms first He the including doors their and success to extending in is with large to customers. explained how feedback. Houston-based to with exciting far finds a of work is and of while reviews speed be is hear only on very existing a to we hearing The partner and hundreds and Cecilia to our his users, our seeing couple

product teams the During Cecilia worked Cecilia review and tagging, together with release engineering enhance which to time innovations, major lines Q&A, lawyers the which and documents way AI including and cases. lawyers prepare increases XXXX, efficiency and efficacy which our

capability been have document which work now the hard accuracy on engineering auto teams the tedious improve and and Cecilia private reviews. of significantly and product in Our has to quality at is testing large and also review, automate

pivot and add innovation to of pace continue skills as we to XXXX, to additional we rate we platform. expect the our As Cecilia AI

LivoWeek time-consuming announced Cecilia at deposition solution We generative professionals to in summaries This a which January. legal tedious launch deposition create have traditionally summaries, the task. enables AI-driven of automatically been and

which software key in the and Our a excited marry to capabilities anticipate also first we this licensed XXXX in later to which working platform team XXXX our law asset, law offerings. core remains eDiscovery on late in the will launching Cecilia, time. for the year. with about single We law facts primary success technology our the And while Cecilia, is integrate services we're primary

During to we our work securely and is team continued send time lines and lawyers asked In the track road need, map. sharing, one which field, such January, of as allows productions access including to user the capability and information, activity which fourth to new quarter, integration customers easily that deliver last functionalities and to deeper user capabilities key production legal eDiscovery, to between our a sort enhancements witnesses. permissions, allows party confidential our expert most to ability work keep product third a delivered from for which viewers on users document on the custom

be and success. talented another I'm and our confident year engineering the in that and delight of product foundation XXXX teams product dedicated, strengthen will banner enable Our our that will extremely development and revenue growth customers, are future

which much will talent way focus are truly to while gets done. a We globalized in platform, work to are more local return transform continue litigation to investing with we we believe believe We to capacity we precise and serving the customers. on growth meaningful positioned build comprehensive our legal a supplement

by One solidify in our and do efficiently our efficiency continue infrastructure product India In of on to this order is will footprint, processes, that, our focusing intend to will the of our strengthen developing to also all strength efficiencies. framework to and future systems enhance enable sheet and additional offerings important that profitably. initiative scale generation. we invest profitability our innovation. our cash necessary to improve core lead to we the We operating our vigilantly presence expanding must balance and and build We while do technology in

workforce by employees. XX% year. XXXX, will our In India grew from anticipate X end We be XXX in employee approximately of this based the of our to India we in over headcount

rebuild working and sales also processes and success enhance are to customer functions. CRM systems our We and ops our

develop enhance We and security critical enable an and key are other These future ability processes back initiatives our well will systems. improved and capabilities will that process scale. as our quote-to-cash control to enhancing office as

a as I remain excited to I'm leader, next be evaluate XXXX. while set engaged Board Finally, very the fully candidates and Disco's strong to continues of CEO, about

want Disco. at to I market have had call I things in reiterate clear role, and I the industry-leading products, on over we the months But significant I in talent, now stopped the some something map our people. X of mentioned our go-to-market to the last We the that amazing spent have believe opportunity improvements As in became the sizable sixth road strategic convinced our culture the earnings my this and enter time month in in I the necessary I've ago. role. also we else approach. and investing remain made

pushed product way. R&D without We gaps. but work We money without of G&A system cut We our to asked closer sustainable harder cohesive a actions sales our detriment reduced process map. save to addressing capacity in and and go-to-market the not Those key capacity functions to having to profitability, fuel key resources us strategy. a road

on said reaccelerating I've with combined this to are path afternoon, We revenue growth opportunity those sustainable in we to in is these us profitability invest a believe remarks will As during missteps. The XXXX. going put investments, my correcting there.

have to execute. we Now

it With that, turn Michael. over I'll to

Michael Lafair

you, Thank million, up revenues QX year-over-year. were total XXXX, In $XX.X XX% Scott.

solutions and XXXX up product services, and million, year-over-year. eDiscovery year-over-year. $X.X include revenues which year-over-year. up X% professional $XX.X $XXX.X Full million, discount were revenues, revenues, from revenues managed million, year were review were Services Software includes which other X% XX% software up

flat net in million, million, revenues last dollar-based our from offering, versus year-over-year revenues prior $XXX.X professional XXXX year. which in were resulted by review decline services product as offset Software Total was a were year. revenues XX%. our up was at Services $XX.X of retention Growth from year-end flat X% in performance.

net unless discussing of operating that dollar-based references to the XX%. on income As and a please our EBITDA loss measure. also was the Adjusted In basis. net all gross note software is Scott mentioned, statement, remainder otherwise are specified, margin, a financial non-GAAP expenses retention non-GAAP

with XXXX in Our QX and line XXXX. gross for was XX% gross XX%, fiscal margin year in and margin fiscal QX year was

gross the fluctuate marketing data XX% usage, our QX platform. XX% our the and before, types was of revenue from year. on on margins expense As and ingested compared Sales nature of period revenue amount based example, we QX in the customers' managed of mentioned of $XX.X or to period for for our of to prior million and

For XXXX, The personnel of revenue year of a in XX% sales $X.X and or decrease $XX.X by million to year-on-year. million decrease of year decrease was and was XXXX, fiscal XX% sales marketing revenue expense over driven marketing a for primarily compared costs. fiscal

Research and in year. development QX was of expense XX% to of revenue XX% QX million or $X.X revenue prior of for the compared

a in For fiscal $X.X XXXX, expenses XX% were cost $XX.X result reduction revenue $X.X year-on-year. of revenue or efforts. General decrease per personnel to development decrease XX% XX% by of research XX% of to over million revenue year XXXX, primarily and compared of in research in or fiscal in administrative and This of compared driven employee million was year and the QX prior decrease QX expense a as was globalization of revenue in and year. development of a a million

and year about XXXX. with and general fiscal administrative $XX.X year expenses and revenue administrative just million XXXX, fiscal administrative For were percent or a General revenue, expenses of expenses of in XX% consistent as were flat year-on-year. general

of loss was adjusted prior XX% to in compared XXXX an margin revenue negative of $XX.X of in of in fiscal million, an XX% of million, the year. Adjusted operating to XX% XXXX net compared in XX% margin negative in year XXXX prior X% EBITDA negative of negative $XX.X negative million of year. negative or in fiscal representing X% compared prior margin a million compared million in X% XXXX. QX XX% was to $X.X negative of to of compared the was a in representing or of or was of an negative fiscal Operating was loss revenue XX% XX% QX XXXX. million EBITDA negative of in million, Net negative year. QX or adjusted XX% XX% a revenue to for negative loss negative loss QX, revenue in representing in loss negative $XX.X margin EBITDA a of the $XX.X Operating year million $X.X XXXX. Net negative was loss $X.X compared to of margin year net of $XX.X margin QX Adjusted EBITDA QX

$X.XX for XXXX share year $X.XX Net share share XXXX. loss was per per to for fiscal per fiscal compared year

no cash million Turning to year the We balance statement. and sheet and cash $XX.X equivalents $XX.X flow in XXXX flow ended $XXX.X and negative QX in to compared year XXXX. in million Operating negative million cash fiscal cash debt. fiscal with was

to the turning outlook. Now

range revenue total we million of the XXXX, range to the $XX.X million $XX.X guidance in providing For million QX are guidance revenue and software $XX.X of in $XX.X million. to

to negative be to EBITDA $X adjusted million negative expect range We $X in the of million.

million in the $XXX and of the million, $XXX $XXX XXXX, million million. fiscal total For revenue of software range year revenue are in $XXX guidance to we providing range guidance

$XX to adjusted the range million, reflecting $XX of in be to negative Scott discussed. million EBITDA previously investments expect negative the We

up like to turn the I'd for Now line the to to operator the over call Q&A. open

Operator

Instructions] comes Needham Scott & first [Operator question from with Your Company. Berg

Robert Morelli

is Morelli Rob for This Berg. on Scott

your As go-to-market touch year? you has at impacted how, outlook CRO, McNeal the January, just at motion of on if the your guys XXXX on can departure Luke all, for this touched you

Scott Hill

into were to and on have the couple Popovecz, remarkably to call it's a you his just phone role. Rob, weeks Thanks you place kick literally I for in she before legal stepped know We depart, board had a wouldn't Andrea the but week disappointed Scott. a placed stepped that question. tell that week, her to I of I who fast. before Luke have off got

at fact I her that into think forward as in years at momentum X the Epic of LexisNexis XX she's for she really XX years, role. the been our a gave industry lot and stepped

as Luke I broader us I had the the work the little things talked a bit call lot are we that do it. to a has good helped have Make lost haven't And we forward sales the some no feel more a enhance with really like move that we deploy. starting are Not refine things just the team and of step, into think frankly, picked up of we've mistake, momentum in that and she we started year. about only

we So end fourth a to the good had quarter, nice a year. way

field really to now. You think by can good but our in the do in across team similarly the have see start aren't and our the things to and necessary in go have those launching the the inside a out the Andrea the year. and and things deploying guidance that team provided that deliver right leadership we we utmost range that sales is initiatives that the are that I to confidence we're we'll for driven and year board her revenue

Robert Morelli

date. some comes incremental great hear any Then is or the there Cecilia, there? it sort to to when guide, adds feedback regarding of positive Any in? the on the strategy of And monetization baked update to there uplift

Scott Hill

Yes.

mentioned I there's doors who definitely is dependency But not a Cecilia on she in only XXXX customers at partnership not customers remarks, but per revenue with to existing as to in we looking that before ways As customers prepared us, spoken I opening we've are whom noted, my maybe to had significant and are haven't coming with now before. also their open back, extend new se.

which in so what the once again XXXX, is impact innovator the with, Disco demonstrating on started is we're And the leading I think space.

about in offering. across the them the deploying what we're talk us buying about hold and case them talk them next talk doing can our room, to builder to our request while to can can and case. We we case. course, our We platform to talk about customers we're want in of the So about eDiscovery to

the really now. that's is that impact So having Cecilia

As and it's have are her we of excited that as I a really different are that some that, but that cases process Cecilia there said, number that for so and now who on think are the using a Cecilia, thing, customers I'm ways do matter. but us paying begun, right has of skills

You think review. which used enhance customers' is but review our line, the doing and also or of case by auto and tagging got which about customers paying live builder a being time you've greatly lines, think, which down today, I released are coming will, Q&A, our part

announced customers should You've got we the launched future. that to at fully yet but our be in not summary near launched that even the deposition that's Legal,

So that customers and I a products, attractive. number enhance us different of opportunities to provide of different existing in existing our for will really find number skills a that way workflows, a enhance and package price bundle think

this contribution acceleration door contribution the is continue our frankly, So year opportunity into opening. The 'XX to customers. to for and move need we innovate is revenue we because more 'XX that to growth as investments even make

Robert Morelli

quarter. Congratulations on the

Operator

Mark from comes question Schappel with Capital. Loop next Your

Unknown Analyst

This you're buying ] in you me. your is on with like [ days seeing patterns, any the to Tim on With whether sales for overall One for XX additional changes closed? or provide demand terms like update past respect Grieve of your an any deals on sign-offs Mark. over could customers, environment, cycles

Scott Hill

notable say wouldn't I noticed that difference. I've any

a and had into start had good think I the a quarter. good moving a of January end year. a to start mentioned, We've I As we February, really the to good good

or now the our change been X about. and goes little week, ago, what noticing, I think just But bit weeks some for of no, was of buzzing. it but I guess first time terms again, that it's a to X know Again, talking patterns. I innovative buying in I am at I we're time back offerings the legal any booth particular don't of So spent

engagement through So right February, excited and year. us Again, that move what across I an I'm that yielding to but reengagement we allow necessarily will new aren't existing or accelerate and into January certainly seeing I'm about. additional is customers think as the

Operator

David question Canaccord comes next with Your from Genuity. Hynes

David Hynes

about back in the negative adds, they ask year. in right? I Michael, of XX mean were customers to customer the I QX, Scott, half added you need

to from the slowdown it the what's begs indicator it the paying business. question be year Just be to and a we there? guess half market of on of going saw what's should I the what health the attention of I in leading mean for seems best first that broader we the

Scott Hill

months they're important a partnering, in to talked I because equal as future one all been Yes, in what that grow, and equal I've equal here. interest question, ability an an I equal, we've good that's opportunity, seen think really and about that's historically, I've think X it's not customers if the

customers small but customers are later. deal there a case, think and deep, a small also do months with relationships, certainly we buy then us who aren't long-standing there have I are where X

asked will customers if focus with So to lot to are the that's historically, a for lens are second customers case, I've get a we a X-K. sticky from to on are the customer. cases. It I've sixth team X really can fourth and the who partner immediately that we of we fifth ones look case inside asked go at doesn't a that grow the the customers are to a grow to us? us it on the a And in X. the can ones sell X, with. who can that a case X,XXX put third? that a ones the what the look a one team second the to can Who to? comes, And if Who Because second pack we lead is us to can the or but know that customer can to we one that who's

from it to is know is grow look particularly mean we customers. does customer I going because count quarter-to-quarter, matter So year-over-year need that's at you to don't that But the do what meaningful.

time year. it customers, they're the The up from XX% a thing year. We're prior X% than more solace X% That's take the million the than spending so that year. us. entering the customers transaction spending we relationship does embed with more or less a or win had can with us customer because entering that And hard and bit XXXX a customers little grow at in far It's becomes $XXX,XXX. XX the that We're the more to more but XX% I next transactional It's we that It's case. $X case. call we makes the a in we're there's driver to ourselves it with entering which get nature in in year sell but like. still point it annuity in because year customer, on last becomes the growth which fact annuity with more is the extent X, not is more for a

that over out this So the time and the customer ever segmenting important. base really any it law, for company, as the is absolutely law distinct in our some our underneath that, looking growing that be motions across law, spend Is our dynamics of first course team there's with and sales corporate big covers sales important, count. year, for within particular mid-market that, and the marketing quarter, deploying aligning customer particularly we're developing going distinct customers from a our around as at to

year-over-year the encourage is for the watch do full year. what you would I to growth So

that the we motion. is We're what that know of sales about as to spend segmented customers, think developing around we're we've the [indiscernible] move I customer Ask really fact serve that. aligning trends year, the the through but the bit every is important

at watch are is meaningful those to metrics. more of the revenue end is the day, trending. the think the Then metric I how

David Hynes

it like looks be and software helpful new been going for that's a to 'XX? it's metric. revenue, Do you. you given revenue 'XX It how to percent for be see guidance have one trending of would a Michael, as

Michael Lafair

I'll software the tell includes the now, is it's for and 'XX for call is K 'XX, million, just you or what on K. that $XXX in about revenue and The Yes. it

also You K 'XX. the have the numbers in quarterly for

David Hynes

historically beyond nothing that? passed But

Michael Lafair

'XX. Nothing to prior

Operator

Bank Your America. Ikeda comes Koji of Instructions] question from [Operator with next

Koji Ikeda

Just a here. couple for me

that assume that think target you to heard off about inflection mentioned third had the the something I think table. is it's guess I profitability I EBITDA I But XXXX. safe the XXXX quarter or now

that quarter for XXXX? inflection? So that in the year that full that Or profitable XXXX would EBITDA positive a be would show is

Scott Hill

my a through is said put pick we to Koji, Scott. to a sustainable I I important XXXX. unexpected on question Yes, word in that's didn't and precisely not quarter, that one. as sustainable remarks good a path will year. are didn't move What I I a revenue move and it's acceleration pick we're it year profitability on an the an the me, us What us beyond, you seeing is additional to path things during I'm into for that investments year we're a telling believe of track 'XX we then in put an the this a and combination making that out XXXX. acceleration sustainable the this and profitability It's as

profitability. committed not just to our and mark I'm Again, to to grow balance to have and the the doing. going we're the not on but revenues want to said, need case record, it get get say I I we to again, off I in as did pick to We're path ability to there. just, put to profitability, that's what

with as us we combined XXXX, sustainable growth investments making year, put on accelerating path revenue through year the we're next the into move will this move I we as think So year. a

Koji Ikeda

us be for a is, like I through revenue is looking to revenue, guidance, review in going is And platform. prior business flat? is going and be Looking of how second I transcripts, part roughly was how it's are question drag through Then would Because XXXX. the at walk many forward? ingested guess that services Disco on it assumes services documents the the which priced the review, it flat price? is it sounded why maybe on

it why different forward? wondering put being going just into category So a was

Scott Hill

Yes.

good a question. it's So

running you our services, have get which services rate then and platform up is running services, services call call them and attach what of is review means way that things directional it for leverage you and I and is The up That's in is on to technology. tend what that our think covers I bit the we I'll within and about services, you to you the eDiscovery think our get our you what professional have a attach our in consistent underneath fairly conclusion an revenue. services reach. forensics. say a review. like accurate in things rate to revenue have software could that, pretty the you ingest I Those down imply little and growing

though is episodic, not review used to going is drag you deals. be it's important larger review business think and tended much on tended The I historically word be has more significantly because with the the thing overall, but a to it's to correlate more the

services It attach big matter, consistent. rate our deal. The more revenue. While correlate with doesn't deal, our small is software

is One give to to our will the larger our on out offer investors underlying key be absolutely more clarity to the deal. broke continue review tends the X of which thing clients we the to that to we strength numbers that. who is around reasons the we lot wanted a business, of the software. our want Again, services is But

I think There's associated business very our really review the A from important lot cost point, our fixed a little business with to variable. of though. costs that. are

And we But it's important the come. fundamentally reviews an leveraging the we offering when it's We they larger can more big to rate deals. believe do think again, that into them the love market. a efficiently, large now, more relates very our We addressable so software. attach right

point sales of those believe to a a I a as as lean the look we laws, of improve. again, like that or as happen it you start think ability move the I to would more fixed and to not consistent into corporates, our wouldn't will that now, were develop we business. deals And want sales as like for million quickly. our win we around mean lot fixed law fees around larger on we whether didn't attach effectively to review the our key develop million of $X to year services. up motion But large understand $X But professional we rate around stack I our will As little big motion does,

a not lot that continue it. customers fixed provide So service want to where of our to costs

Operator

question next comes from with Jefferies. Thill Your Brent

Luv Sodha

and Scott, Luv Michael you, is Thank on Brent to wanted for -- Thill. this Sodha I one. ask

obviously, drive volume a down So declined that are XXX%? above maybe And bit vectors What multiproduct the has up XXX% dollar retention year. cases to key the XX% that driving adoption? you to could between, of last back break quite versus versus to say,

Scott Hill

Historically, to that is the me, be. the it, to our software the we the goal. get historically, D&R where to back off we're we fruit goal we've this been back that we've hanging has think isn't XX% where push Yes. in XXX% the it can to XXX%, guide, to, In got. call is year, been hit order for which got I know XXX% The software fact XXX% lowest a year, business. we've Look, coming

team. be I But They're corporates there. everybody those a important. motion focused think law on the way They go have from greater went of couple a important base. of are Antoon and it's segments critically Melanie inside the success that's on really a think, got right success customer them in why is well we firms Justin, working lot X is existing is already just I to not that that going say thing our another, that years really it's And is having And our to in customer There modest a are and large far happen X,XXX and to push a same team, customer ability the there. her to of reestablished in there. customer. ago function one function. And together in mid-market find big are the of customers And having kind that's no I strong

of about the And go-to-market team ops as marketing, part talk function, in I part of the success alignment wise, customer and sales experience. field, big the the client a an important so that in is

us? you from to we've next are who got product to our so understanding customers the needs are, back what's their And said, buy they and looking, what get as could

opportunity? should Do have case cases will to that client talking we are of that case the success every need that all The builder Cecilia in across where customers they they in their I the to sit have next be reps those the market? Can week, or think, case one to What's skills success. particular. we leverage critical

blocking And the and to I XXX back historical feel down year, be to tackling. we're so fundamentally the like ball. to that now refresh our that move our And through towards D&R months, eye steps. Again, last and and to the really we function caution the believe it are our segmentation. to couple basic ability or for off in to we've rebuilt going function back we the levels, aligning above me, that rebuild that particular, moved XX I But as is and the frankly is that critical taken we've from alignment number. took that just right ability over around of fact XXX push we I XXX

Luv Sodha

that Just additional getting the Scott, the make, from some you're investments investments a planning quick follow-up to Because you're business are getting on of India. the which efficiency parts this obviously, in investment?

these these the track how And investments? efficiency investments of you are will going? where So

Scott Hill

as Yes. my said It's in multifaceted, remarks. I

ways, harder it was to year investment Last any were work was people. year first reward. made in difficult Disco for to of no most in once our year little with in of number simply The a but again, was we our which, people asked a

this year, X consistent the as into first in for increase time so salary we program. years, had we a And moved

impact world an equity, It greatest our which our gave think the our the equity in to EBITDA employees' in align doesn't everyone we really I best what's numbers, company. is program company around also the that had but interest for thing

key first in is So for people. thing that's and me the investing our

allow XXXX. It's what the summary. reality particularly of segment, will We're is big making It's just second about success is not to we're we doing tomorrow. grow in XX%, most I investments about our XX literally will sales corporate R&D our the about XX% around reps as because about customers It's from, rebuilding think, to platform. today is, adding cover in and thing field I that is We're around the in rebuilding us which capacity under from law. our client team. We're R&D what The allow as eDiscovery X, team. ops more to enhancement going flat deposition us mentioned,

world where your about a it the revenue, and builder. you're in effectively because nose doesn't It's up that you cutting current enhancement line cut the despite with year case face. And your off

as you harder. And people future. and simply on can't are And know near this the dear business, in a I working scale investments to so try is his Michael, you depend it's R&D and heart, in that

you to systems, have have have You to have processes.

to year move forward. You are go to as have the news make security that of have something is spend you in and versus model necessary level isn't to that. The have need investments we to we must increase good year controls, last the do you have this

to we're overcorrection an bit on growth be able I then what put recovering year, revenue of to double-digit that by doing and from balance to think that. ourselves with profitability sustainable this little support growth doing is back we'll path getting low year, a and last single-digit expense

all flow. if is the you significantly guidance that. sheet X%, in it So greater forward-looking I way are script, be the the on XX% our towards revenue said of that's I earn that had those at way than the cash what the it investment say last in on I'll board, investment speaking, in our look about I will it the on but to double-digit balance the roughly modest our left across the we're and which we at to the is line by get And would return really sustainable if we the which of finding cash bank take sitting year, think end an business the and about the that making investment is with thing positive of way, growth, profitable ability that,

Operator

time. Scott I over questions There remarks. further this turn are will closing it now for CEO, back to Hill no at

Scott Hill

management in and appreciate for We're today. for be customers to sustainable look I was their a returning We're on to of our I to on as committed part we see joining Disco. nice all road, it We're is customers team you, but other, excited everyone us We profitability. year you disciplined the the I aligned updating expense consistent for There our into XXXX, move chapter committed forbearance. just I a I'm to about we to leading challenging begin wish want excited be tell to committed to we Disco. focused. a double-digit next capital and to each and growth, employees thank XXXX. to to next our and quarter, said, the our have the you progress and bumps We as their opportunities as and evening. our resilience forward and will for proud

Operator

participation. conference today's call. Thank concludes you your This for

You now may disconnect.

CS Disco (LAW) 22 Feb 242023 Q4 Earnings call transcript