LAW - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to CS Disco's First Quarter of Fiscal Year '24 Conference Call. [Operator Instructions]I would like to now hand the conference over to our first speaker today, Head of Investor Relations, Aleksey Lakchakov. Please go ahead.

Aleksey Lakchakov

Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for DISCO's first quarter of fiscal year 2024. With me on today's call are Scott Hill, DISCO's Incoming Chair of the Board of Directors; Eric Friedrichsen, DISCO's Chief Executive Officer; and Michael Lafair, DISCO's Chief Financial Officer.Today's call will include forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to statements regarding our financial outlook and future performance, the impact of changes to our executive leadership, our future capital expenditures, market opportunity, market position, product strategy and growth opportunities, the benefits of our product offerings and developments in the legal technology industry, including those related to the role of artificial intelligence.

at prepared replay earnings be the uncertainties of our from Relations or our filings release, found expressed that to known those to Investor a involve statements. be actual forward-looking and today's website or may addition cause remarks, risks by results, press our SEC on and our In unknown statements performance, and achievements ir.csdisco.com.Forward-looking implied call different can materially

of management's financial filed including Forward-looking XXXX.In and a discussion not the call XX-Q March non-GAAP SEC performance GAAP. and for over entitled financial GAAP measures made. quarter and in to addition company's addition, non-GAAP measures equivalents I'd XX-K to report discuss Risk turn in the beliefs the Form statements our the that, like or Form the financial financial between versus earnings to limitations with to report as in could of company's in date and are prepared in on to measures non-GAAP using non-GAAP accordance we measures. the their on ended available on quarter on superior annual only the of its These will substitute Reconciliations financial of our results XX, that the for factors time, represent and measures a is today's GAAP February XX, closest the release.And with call, during company's with from time SEC XX, the Information upcoming XXXX, year Factors assumptions included XXXX, section filings affect with the for ended December is Scott.

Scott Hill

Eric himself. to on we an working person the search want believe to combined positioned by you prospect and a CEO afternoon, to excited next he Eric? a voice, DISCO growth of my until found everyone, next that a very us. outstanding stood nearly scaling joined we We a conducted His CEO long-term level. months can take answer. committed call noted DISCO diverse Eric that else. ago software we and find leading be a I DISCO's person.The today person everyone Thanks, is Board are global complex joining time X to Friedrichsen. companies, very DISCO's for long-term I was above DISCO's CEO, Aleksey. sales first introduce Good customer's thank I'm believe new at and DISCO functions, enable global the range characterized Eric the with profitability success. that who collaborative to our of culture, return we opportunity first interviewed I'm a and out shareholder best-in-class and experience the find company strong a products candidates developing to took and to Chair improved is elevating to the me.Before returns. team commitment excited DISCO's for with come an leading right to healthy clear and quarter have as Board mean job.Eric discuss which and deep into the our will to Eric of to consistent by is we be so building support made of the stage, it to who much him Directors its uniquely performance, lead culture, give Eric I closely a to help that

Eric Friedrichsen

to to happy moment taking very to I'm start just a thank here. everyone. hello, and Scott, want you, Scott. by be I you, Thank

I the Your both past very and leadership stabilizing appreciative. been am has over months X inspirational.

you've help of everything appreciative very lead through all the that we're fact, done period. difficult team this In to

the of and software. X served of past world's of as travel So quick thank expense a you, CEO I Scott.For the provider largest the as you, the for Emburse, rest independent years, introduction,

I improving doubled the years leading gross the time a leadership XX Emburse, loyal my to honored Emburse, met employee DISCO.I over well with and handful the already at very spent of general healthy large many services million Concur. population than in to have and become valued technology, Adobe, time profitable while more margins, I and notably most and SAP and to expanding as employees business.Prior a $XXX organizations spent we CEO And our During am management, revenue becoming at key and customers. now senior as over and sales, of

But in of over to the accomplished.Growing remarkable technologies million invest we DISCO in to and thing will X,XXX of strong develop business they've process say to foundation of DISCO brief a of of advantage I'd over advent of stands vision precipice legal will at evolving that in the be advice, of we area the a Whether all collaboration, research, we the things. technology at industry products advancement. should stands even is industry-leading task. simple and from employees and proud of like legal revenue the technological customers take the XXXX strong is is this that is gross first AI, legal so The one The even or DISCO, exact a impacted of document change. to truly of legal benefit the workload margins, Every revolutionary our because due to everything team most our achieve to vanguard and very writing with that.But the be generative moment. leaders it's the every $XXX more AI.DISCO review, the that not is know the are legal focus by with at this industry

of now to more but strategy and base on and our to I I'll calls.Thank you, you providing everyone. getting forward meeting as future our investor earnings accomplishments in So know, And back updates it I just our over am all you in turn started, Scott. look

Scott Hill

welcome and Eric, Thanks, aboard.

first XXXX the into the for of up $XX.X year. of dive during quarter last solid let's Now same million, Total quarter X% XXXX. our the first performance was revenue versus quarter

with the to negative third quarter. for revenue this $XXX no Services EBITDA million.Notably, year the ago. million was X% $X.X first a revenue million around was software and improvement of quarter and prior revenue time $X.X in year from quarter year-over-year.We each of sequentially customers, $X.X adjusted growth million, over X% revenue $XX.X cash, X,XXX Software million consecutive in an up the the first and grew debt accelerated ended QX

our As many the X our customers. our we've the am acquire mentioned functions.We're some our quarters see is innovative led our even demonstrated profitability to to additional give is functions. grow also prior approach.Over features term, an of the early the enhanced realization at enhancement our and base that to our calls, continuing product engineering of of we refresh go-to-market proud confidence effect we revenue reassessment evaluating quarter.Importantly, customer much go-to-market role further on acknowledge improved note, few opportunity develop internal will we segmentation, us the our existing a confident record have dampening improved His of customers. assessment customers. replenish and but despite of will his add teams months, a the stepping also success then redesign, to our AI customer high-value change having the time auspicious while even ediscovery combined we're Eric our sales medium high-performing in retain they and and with of last customer customer-facing growth a executed investments the and go-to-market reaccelerate second a over and I and offerings to reorganizing our cost in that aspects quarter, in began loyal base slight enhance and shareholder understanding of smaller challenges teams of our us growth, the given offerings That rebuilding our and that stages reaccelerate new the all marketing way customer within product innovative has track help to into platform. deeper as we understanding returns.During need ability continue of and our past core which these our to CEO efforts as Of for developed enable and SDR first leading generative

review of a summary customers at to process. through review to at task this in the a or skill language. down that live of immediate and and is going platform.Next, the an no capability demoed task is in X,XXX to hinted and overwhelming we're The an or and auto tag customer our example, database.This process of new feature documents lawyers hurdles feature small Cecilia doc have of would be for all review takes provide a AI required that we excited a As complete. you embedded to one a being our it terabytes bring AI the summaries. of overcome go as called I our have a charge takeaways customers. documents.In about call This hours announced We're tool as through assessed a typically enhancing individual lawyer's number data provides may It a database leverages in speed designed with the is to high-level set the used on person individual Cecilia documents seen, now then legal hours of just element document, generative in and DISCO's relevant that to take allow of detailed at a of a last are XXX of the and with review lawyers identify thousands is Cecilia many auto lawyers review to relevant of case. pages AI the a to click in to given earnings in most the could review those several Cecilia parameters be a was and case that to button document hours, documents auto slows documents core of on foreign hundreds user's supplement manually workflow large-scale process review. Cecilia manually for much X summary dashboard.The review documents esoteric DISCO process.Doc dozens might long single summaries reality this simple of the request the punchy excited

improvement to correct.Imagine a potential of the most how Importantly, support more for the deep mismatches, our to text well of search standard time and case solutions that streamline review we high lawyers' to Cecilia strong continuous building the to best intuitive our releases, platform enhancements efficiency reviewing small a have volume those the ability updates workflow, our date the focused their one from full coming on more that platform. list, additional their and on functionality, request the sort the Cecilia core have about time, we skill excited a customers technology among to capability a for in skills, acknowledge ediscovery empowers update already we enabling auto custom irrelevant significant matters.We technical and all unlocking of of delivered enhancements as results feature, their efficiency and field, or results human ediscovery customers that this number next data Cecilia customers on much UI of as DISCO's actual more for and and number management functionality and this more XX% process product they have the and legal during customer probable Boolean A We're search customers types will quarters.Even this like this of results we documents. the in spend with matched Cecilia efficient of the the clients. has custom our our provides legal of had this the data were enable coupled opposed custom it's Cecilia develop we'll to fields can new their we quarter.With review and feature understanding fields, Integer, users on called users outcomes type continue and with this workflows.Although remain effectively was produce architectural many been key new enhance from data that with past text, features enhancing any our to requested over free believe

the products single platform cloud-native my is the pages strong produced and with in and billion cash in day shareholder scale first returns. fast.In this growth platform scalable efficiency.From highlights enhance over to deliver were million handle Our our I to ability flow largest positive alone, were efficient, a This unparalleled of hour. the consistently platform. and stated peak, that people pages role, over and to reaccelerate offering has leverage belief DISCO and produced have XX.X X.X the the DISCO the profitability, my And on March the at matters right

talented industry-leading challenges to our large employees, better March culture go-to-market areas.The and a confident market I'll can experience that share and action our We objective have price. with more and developing launch both and our in to that Eric's analyzed over DISCO belief our plans it help products culture realize value improve and growing combined go-to-market of was reflection is current Michael. buyback opportunity stock generate stronger of to leadership program We're are a our meaningfully materially that than that, our support turn objective.With reflected in

Michael Lafair

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

statement, Software year-over-year. we but include is year-over-year.As to still manager our length. also QX were expenses revenues was an was immaterial are net adding X% Services as unless to with references at XXXX, margin, market Cecilia adding from starting loss non-GAAP DISCO our please beginning were portion XX%. business, margin which Scott the financial which to are contributions EBITDA remarks, we've see income Cecilia exciting and signs starting up remainder clip, the gross continually discussed encouraging. up and new review see a otherwise services customer been X% $X.X Adjusted his for discussing an capabilities note This specified, measure.Our a introduce non-GAAP Since in million, the mentioned revenues, quarter been million, of $XX.X to healthy gross all that which professional are of of at we is At base.In us basis. to in traction on this to Cecilia, in a operating we are the previously December our platform. customers point, has Scott

amount QX cash flow $X.XX negative balance QX QX in per for $X.XX loss EBITDA per is QX was General a QX result Net decrease the was no QX, was compared to million of and QX prior and and was to $XX an primarily compared the changes.Research prior and the research negative $XX.X and head XX% adjusted in ended the EBITDA representing or gross negative statement. negative $XXX.X Net million cost revenue a revenue $X.X to compared of a or of employee were in in As ingested of with year.Turning customers' data QX personnel QX million development share in QX nature loss compared year. prior year.Turning in million the we marketing QX XX% due expenses efforts. negative in margin General or the revenue XX% was XX% for of predominantly based prior sheet and relatively negative million or the the driven administrative to compared XX% Operating globalization XX% million, our expense platform. our the expense was count $X.X cash the managed operating share of cash reduction This adjusted $X.X XX% QX $XX.X was compared in to expense prior XX% revenue QX of per in prior EBITDA representing of the the million to Operating for for by and of flat or to cash XX% outlook. million of before, of to $XX.X loss revenue compared in from of QX margin usage, net of QX year. decline to million to development administrative million in a negative was and prior in year. of revenue of on an in QX of was QX period example, and an year.Adjusted as XX% fluctuate loss debt. in mentioned revenue period of types and $X.X equivalents flow of decrease margin year-over-year. Sales The and our of We in of XX% of of prior year. revenue compared margins $X.X year-over-year of on to negative to year. XX% for negative

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

long be will to over negative million an confident did $X.X Scott growth we see we range We in term, as have impact in quarter, mentioned, to EBITDA we accelerate ability medium which numbers. expect year $X.X our to million.While the remain to of some in adjusted the on second our full start expect the negative of our softness the

narrowed XXXX, software revenue to $XXX and of year million we $XXX range fiscal guidance revenue to have For to total to million the range our million $XXX guidance million. $XXX

the negative for We the over continue million I'd $XX Operator? to to turn adjusted of like open $XX negative up to the EBITDA expect line in to the be to operator Q&A. to range call million.Now

Operator

from Your first Berg [Operator Needham. Scott from line the question of Instructions] comes

Scott Berg

in company. first I the company? hear the days connecting about Eric, what do are, priorities welcome maybe to to maybe I look the I over to to XXX with your But think, wanted first guess, forward person. XX you

Eric Friedrichsen

lot but they value Thanks, opportunities more partners, customers laid-out make law big we're Yes. very that at my the was interestingly, enough their next got firms I'm taking XXX we're to but the Austin with got can I to meeting, up to be along funny much possibly And for as they're with our first I'm the in the of our We're teams I've going going a can.So want to getting detailed advantage Fortune and really been best it's we the our be first to able experience, embrace that speed, of I've people, products, be X.X The some and a quick really with join understanding today several do. next out companies time our customers, I focused weeks, I've right desire to sure appreciate spend our us of to getting more great my very of pace quickly, to here also Scott. only you India that in opportunities because learning New best see our our and intense. a many products, a partners. also the it. and very Board it's DISCO with meeting London that with driving focus weeks, X do plan moving York and lot to It's AI.So and in business. teams over talking of visit know them. U.S., on both and going already be run been learning as meeting, to customers. visiting imagine, XX coming to company our days, in

Scott Berg

wanted And on comments more then Scott Michael's maybe would be within details that the customers? you and ediscovery, double-click on additional I to up on Can on helpful. specifically service and follow quarter. softness is expound small upon large customers, side, in there Any it

Scott Hill

I'll take and if anything chime then Scott. in It's wants he add to thanks. Yes, it. can that Michael to question

a I we're minor seeing second very is So from in doing think what softness impact the simply sales on the side. the in the you're quarter reorganization

effectively such be align drive of and on the unique will a focus approach example, buy, supplemented company the by size, develop a that the Am started investments. about time call, calls will segmented law their is relative As as that, large a corporations I've SDR like, to they first look focused for now our of field on customers the investments an XXX% we and last Law talked couple team practice.And their marketing that our have, for to type started is and those last sales way and for our they XXX the -- customers particularly how what and in we've to

lower of some the is pick Our going plus end sales team group mid-market. up that inside the of to

just to of different to that the people elements roles close sales the are those teams example, that those their in to time in through as of other pick SMB table. going of to to them process segmentation.For are the opportunities. first we the they've doing that. We call up focus of didn't for build market and turned reassigned to next and terms sitting side, so some I'll in big our will take -- approach.And what leave allowed -- we've on corporate money roles, the relationships we're what's on the their inside now that Our want But parts open the team the quarter

the small the perspective, quarter little And of think in so good very I is a the bit But back step to softness news it related reorganization. that positions from my a us forward gotten segmentation. resources and field our and really segmentation our once aligned reestablished with done, our a the go-to-market and we've for investments that step important large reassigned marketing really work

Operator

the from JPMorgan. from Your Brian next comes line Essex question of

Brian Essex

I go-to-market currently kind you you was as bit -- maybe that the of changes some wondering of going of through, well executive given the could both a side meaningful thoughts cash when start benchmarking then changes offer see might the little initiatives, insight on you're these positive if into a the in as some acceleration as your achieve of profitability, outlook to line? on for flow a changes? of you to top result level on of any And

Scott Hill

Yes.

a So I backward did way. a doubled will the say, for on the which about, is at into that's I from to this us to tremendous of confident the later I'm a of ability third movement a or in a for it guidance what will put get that pay which that pay making. on we right look X%, But we're of time on I refocusing grow customers that is have basis. last has is the we've more go-to-market you later them that we're -- background join. only -- believe accelerated, than quarters XX% but really whether small but this we doubt ability Eric call, better last I mind quarter said XX%, sequential Eric if don't to accelerated. right brings us the with the in that XX%, to investment software, dollars XQ as growth have say sure we done revenues growth X capable standpoint. our in despite that the and consistent the and it. XQ for however, the we harder what growth, first quarter.I'm to amount to midpoint the We've in dollars, think Not at it And software. the want I is And you on line there's talked can demonstrated in that He quarter, last depends off.And approaching time off year on the back to company. his no could revenues my not in begins the

so at be faster, those accelerate go-to-market, And as that it stages in his begun would a will the joined be can early leadership. so then payoff the making Eric of believe come where not of we've he moment changes our only it enhance help the but refine and a without those, what I them multiple will

Eric Friedrichsen

Eric. is this And Yes.

where in a me Let with they're spend impressed really Andrea, Sales; quite leadership so bit team the work had I the leverage have to just go-to-market, to that I've far Tom, is of most very senior of that's at Officer. say to and jump I've What understand that Melanie, would Chief involved the in our too. our Customer opportunity And been time SVP we here our doing our data CMO; opportunity.

allocating I've of plus, revenue generate of the then by right those lot in really resources those on customers value comes time. for a outside and there there.And successful been job their opportunity from customers, Every X for the and most track. ever XX% our doing decades our mentioned most the a to has segmenting this then the their where last long understanding the customers were I doing has worked top for they There's of customers. we're revenue a customers. Scott company.And that As think past, the the XX% started of can with should over good be And top the that in I've organization some our

we still are make those We're I and where right the but resources within think acquiring expanding which revenue, we and net can most in new of in allocating pursuing think many customers that going investments going biggest to customers. get we can our those segmenting we way really a share customers to to is to be customers, in be good of where the going we're we're our grow.

Scott Hill

EBITDA want because is sustainable on year growing. and re-energizing to I to sustainable investment get your 'XX is the and our profitability. growth but ours. of profitability no finding focus it and to answer growth is the and I and reduction do This what you hope of by we investments also then we into as we're of held back And guidance, and our part way that's Fundamentally, so the as investment make, to ways notice of will we important re-evaluate I 'XX to last the SDR slight move that marketing in types not top is pick you'll up to line but we're than committed are improving path us those and the go-to-market.And the how didn't even to that. I doing need making profitability apply on call. in That it's drive optimize the question to us because revenue only is we to to different what profitability, the a said with

Brian Essex

indicate XX% top And How customers? is around And of your a define Got you that you you any there can way way do unit from that your can quantify been a how revenue cohort? economics it. helpful. customer? growing, Super any maybe cohort top has

Scott Hill

Yes.

make wallet nearly that because back full that mentioned and are XXX Eric spent we of that news. than So XXXX. $XXX,XXX look It's means customers. on great a to, us over if us XX%. over up referring more year XX% note, revenue.Of those last XX-K that by of customers at customers the we That's super that had our That's nearly our at was share grown X group important we go XXX you metric if of with years, our this you has that number growing call for what the

we who spend We customers aren't has last real customers also again but That that the that next less, of been little to mentioned over because XXX opportunity million we had a excess a call us nearly on growth who spend than opportunity more million. $X bit for that $X had XX. us spent in wallet the now over is with $XXX,XXX are share-constrained.Those we're

inside our aren't relationships, of execute. $XXX,XXX. who opportunity are in prepared for And opportunity yet. there more and focused is the those technology. from.Clearly, Who we're the hour. resource, customers to the where billion gee $X our we you. message mentioning, does we're Eric it where million. to but focus even opportunities remarks, what towards we X.X the million the pages, is, in us can then with whiz in my but is so buying one at key sales those metrics Figure because reasons scale. the of out are largest facts, than us as But handle build resources keep than could with a align get X,XXX we're have It's the can and mean?What out customers customer very deploy entire means invest Those it. come million, Who's people spend was how focus. matters investment, it $X the growth going where I talked That's XX customers base the front the to buying $XXX,XXX why as go going that the platform an align is cover more key about and those more going It in our have to front to in of pages is then are grow and

Operator

the Jefferies. line from of comes question next Thill Your Brent Instructions] [Operator from

Eylon Liani

Liani Brent is Thill. on This Eylon for

company on you to My Nice drew vision if out? is, to and your meet you. years question could Eric. X you shed is one DISCO color X maybe to some to the for what first The

Eric Friedrichsen

been our at and even loyal the new the -- we've tough great sort really you. competitors.And a from with like Very was position employees team incredible they're the thing growth was had We've in people.And got mission where there through felt come out getting no-brainer times, DISCO. so and experiences that are future had been make to are that's state-of-the-art felt mission some the super base, new we've enhancements, differentiated I've time put think though could they're to an products the approach that for good of some where at better. a an I to time have choices, that Sure. a really where company little confidence where DISCO over I really was customer strong DISCO I got of have go a a DISCO. I is of next. opportunities products a products worked number a and they're that behind I to committed I've back like me teams coming I've get only I a looking got was had get to be they've differentiated years other a that who, some and then and some we again wanted better. felt I that people, trajectory I of there And passionate growth and to industry-leading meet about amount We be that and to I can about and a fortunate. solid about to significant it could challenges got overcome AI selective I we nice ones LAW to you. here Thank of honest significant set few had and solid perfectly a

I So that challenges DISCO. done forward were a look the at company to doing was ahead like and are strong I and felt the really that I've ones company before

Eylon Liani

you around gives specifically large activity color you customer in around confidence that seeing business shed are embedded pipeline guide? in would if what helpful. as you the what guide, seeing that color. usage, follow-up, And when helpful full quick comp Super and look in be and the some super XXXX I XQ More tough year the can just in given the you're XQ, at a softness that

Scott Hill

for the question. Thanks Yes.

continue engage, us we certainly be see Cecilia not to customers only customers of a why. reasons it is may the And revenue though not board. contributor yet, large mentioned but door So across large Even the some a opener. for Eric

Cecilia there really be initiated thing like looks so And interesting. It that are looks well, truly conversations this are lot -- based transformative. it could a of upon

going more things from the got Let's month of the the transition my sets what I of the and now look average, view for quarters.So customer in for investment. the growth something a of we've this as not external is to AI acquire external in which versus are X conversations, our rest to couple customers lead so product of the again, Eric if that's of months will the on the at to whether what kind Again, doors midpoint risk way necessarily go-to-market a focused last calls I people and success, the is offerings hear believe internal work the to an of X next quarters. really the one of The the about. million regained on importantly, guide, of to it about realignment committed the That, the in we're confidence acceleration it's we've quarter some of back for we've through we've have outsized. get which about That's done that year got that the an the and is it, to reorganization a the more and that year so it's wanting embedded innovation But team sales conversation.And of lead you sense into up revenue talked an and me. revenue more us to are of taking opening to our accelerate now.And or encourages XXXX. from in side, risk. half from inbound of $X generative And really

Operator

of comes Capital. Schappel question Loop Your line final from from the Mark

Mark Schappel

summary products, your appreciate color I Scott, secondly, Eric, on How the earlier in general, deposition deposition you welcome, those in And you. was on? no new the the some other about thinking number AI working a tool. further you're for was believe charge. provide wondering insights I just you're if how question could you about tools are capabilities? the monetizing monetizing one. new thinking regarding I But summary

Scott Hill

Yes.

a to and for team. the I thanks I to engineering And want because it in out question. our product shout particular give appreciate So

hundreds we with a that? ones competitor possibly helpful. in we what summary, document can mean? for documents, they a And How But Our amount that mass can read you for doc free.And summaries, running handle is, when scale document free. of we oh, be a could me offering What into that summary were what are well, don't capabilities useful if doing a were do the XX I can we but pages. for Cecilia built was competition would giving is document summary and our thousands customers. I ask, of so get summarize they world that's we capability again, industrial competing I'm meant have and where want single lawyer quick summarize which a they to and were it's competitors documents

hurdle we with free. truly an time think our But X you sell we the document, what weeks the you customers time summarize able time that do to and of out that the more clearly of feedback us.And can edge an that to want as of the case twofold got the the products a one more that be Our can then work do can to leverage with way. that their of demonstrates Don't that databases course is opens happily impediment think leveraging let also move we efficiency believe of launched to weeks, that in our and sales, who to a is X one, as it. like our the new measured to with think Cecilia refer embedded customers to will for that we platform need onto still was get what to from existing the customers or in DISCO we lines Number it team we efficiently.We here we'll those more the things we because in innovation remarkable we to something I as skills, builder that by the kind the technology capabilities offering them, have think about it their value-add that in is value Q&A their be many in capabilities, documents. about relationship you it cases way their so deal door think doing to a

pricing not like one where it's a certainly through individual versus what And so a overall pricing chases feel it's strategy simply and our place working the and strategy the But value we're we will be. dollar. that still way package the lowest the pricing

Eric Friedrichsen

one the at but capabilities. of that when to Yes. from customers just several speaking the very industry they it's is And But competition. investment it's too. We're I seeing optimistic speaking and that, and on demos customers AI think with product create going generate Go past customer summaries not going the team, better on or save about the Q&A margins. starting a on far made the ahead. the is opportunity that understanding revolutionize we've in where And automated all reliability, money to is think DISCO's capabilities. all jump that and early the this it's for to opportunity.And years. Cecilia Eric. review point.And create AI This feedback and AI is We're a to things to these significant that got save to it's I'm like with about game-changer. for to from leg I'll The with automated speed, just get security, believe the in comes a on some pretty it And particularly incredible up the AI that ahead capabilities, about can and reviews feedback in amount of for Cecilia so it's The DISCO going we opportunity time of Yes. positive. that's deposition some I DISCO far very

Mark Schappel

one churn just quarter? then Michael, I here. wondering And was if address in follow-up you the could

Michael Lafair

the for Thanks question.

and lead would which to the QX. good a obviously some also back little tell we've dollar-based of about numbers are we pleased I year QX the that was the end we -- agree of results.We And a But get feel So mean, really dollar-based half to the we've can the quarter. where what lot We to revenue, where used confident back were previously of We second in of would said, reaccelerate they in about you, our everything discussed a the I investments will a we've with bigger beat basically we bit preferred retention than in net line net Scott improved terms softness have in going making be. were and the made to at churn, at with disclosed had. we to the guidance. K. and still off are And retention the of year us and pay I with

Scott Hill

was the And DNR And Mark, couple point. was from where just count reinforce that from up at points data ticked also the end prior a quarter. a up modestly where of Customer and the little of it up bit it to was year-over-year year. slightly

suggests So churn those each not was and that modest performance quarter. metrics, the quarter of the suggest to, revenue a factor with the in really along the that alluded in that as Michael

Operator

session. question-and-answer the over of closing now our I concludes back to final turn remarks. the Incoming Board call That for will of Scott some Directors, Chair Hill,

Scott Hill

helped acknowledge the much. you Thank what work and back more thank in role momentum.I of today. was for in to into focused right with on get and our the months recreate colleagues my reinvest to stepped and importantly, the my who the I track. all was and company improve forward DISCO goal and you what joining all DISCO was ago, to leaned colleagues forward CEO When want us broken, Thank working have here X company very at call my stabilize

to be Your opportunity remains done, work commitment us there customers to to our lot me. take. our is but for and A hard company inspires of the

want Eric, We're together to and positive add? come to execute.I like anything for thank have to returns. their our investors customers and loyalty. you job, and patience we and refocused to welcome Now the serving you'd their also on generating

Eric Friedrichsen

one that more Actually, we to together Chair first everything you as I'm DISCO with Board. work for you all, several want very get to thank of these over you've Scott. done for months. just Yes, that the fortunate of I time past

future and earnings I like the look And that. partners forward to I'm customers, our DISCO, forward looking quarter's I'm next I'm looking more our you, investors. much optimistic I sharing our about of very appreciate call. our So to at and forward,

So you, thank have everybody, a call, joining evening. the great and for

Operator

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

disconnect. now may You

CS Disco (LAW) 9 May 242024 Q1 Earnings call transcript