CS Disco Inc (LAW) Reports Revenue Growth and Narrowed Net Loss in FY2023
Total Revenue: Grew to $138.1 million in FY2023, a 2% increase year-over-year.
Net Loss: GAAP net loss improved to $42.2 million in FY2023 from $70.8 million in FY2022.
Adjusted EBITDA: Improved to ($25.9) million in FY2023 from ($44.5) million in FY2022.
Customer Growth: 9% increase in customer count, reaching 1,441 by end of FY2023.
Q4 Performance: Q4 revenue up 10% year-over-year, with GAAP net loss significantly reduced.
Future Outlook: Provides guidance for Q1 and full year 2024 with expected revenue growth and adjusted EBITDA range.
On February 22, 2024, CS Disco Inc (NYSE:LAW) released its 8-K filing, announcing its financial results for the fourth quarter and fiscal year ended December 31, 2023. The company, which offers cloud-native, AI-powered legal solutions, reported a 10% increase in total revenue for Q4 2023, amounting to $35.7 million, and a 2% increase in total revenue for the fiscal year, reaching $138.1 million.
CS Disco Inc's GAAP net loss for the fiscal year improved to $42.2 million, down from $70.8 million in the previous year. Adjusted EBITDA also showed significant improvement, coming in at ($25.9) million for FY2023, compared to ($44.5) million for FY2022. The company's customer base grew by 9%, totaling 1,441 customers by the year's end.
CS Disco Inc's achievements in the fiscal year, including the launch of the Cecilia AI platform and new product features, underscore the company's commitment to innovation and customer expansion. These developments are crucial for maintaining competitiveness in the software industry, where rapid technological advancements and customer demands drive growth.
Financial Performance Analysis
CS Disco Inc's financial performance in FY2023 reflects a company navigating through challenges while investing in growth opportunities. The reduction in net loss and improvements in Adjusted EBITDA are indicative of the company's efforts to streamline operations and focus on profitability. The increase in customer count and the introduction of new AI capabilities suggest that CS Disco Inc is expanding its market presence and enhancing its product offerings.
The company's financial outlook for the first quarter and full year of 2024 projects software revenue in the range of $29.5 - $30.5 million for Q1 and $120.0 - $127.0 million for the full year. Total revenue is expected to be between $34.5 - $36.5 million for Q1 and $143.0 - $155.0 million for FY2024. Adjusted EBITDA is anticipated to be in the range of ($8.0) - ($6.0) million for Q1 and ($26.0) - ($19.0) million for the full year.
CEO Scott Hill expressed pride in the team's accomplishments during a challenging year, highlighting the deployment of key platform enhancements and the development of innovative AI capabilities. Hill emphasized the company's focus on re-accelerating revenue growth and investing in software offerings to improve efficiency and profitability.
"We were pleased to end 2023 with a 9% increase in customer count and double digit revenue growth in the fourth quarter," said Scott Hill, Chief Executive Officer. "As we turn to 2024, we are focused on continuing to re-accelerate our revenue growth, investing to enhance our software offerings including advancing our innovative Cecilia capabilities, and strengthening our operating framework to improve our efficiency and profitability."
CS Disco Inc's commitment to enhancing its software offerings and improving its operating framework is expected to contribute to its financial performance in the upcoming year. The company's strategic focus on AI and platform enhancements aligns with industry trends and customer needs, positioning it for potential growth in the competitive legal technology market.
For a more detailed analysis of CS Disco Inc's financial results and future outlook, investors and interested parties can access the conference call and webcast information provided in the earnings release.
CS Disco Inc's full financial statements, including the Consolidated Balance Sheets, Statements of Operations and Comprehensive Loss, and Statements of Cash Flows, provide a comprehensive view of the company's financial position and operational results. These documents, along with the reconciliation from GAAP to Non-GAAP results, are available in the company's 8-K filing.
Investors are encouraged to review these financial documents to gain a deeper understanding of CS Disco Inc's financial health and strategic direction.
For further information and to stay updated on CS Disco Inc's latest developments, please visit the company's investor relations website at ir.csdisco.com.
Explore the complete 8-K earnings release (here) from CS Disco Inc for further details.
This article first appeared on GuruFocus.
