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CS Disco(LAW) - 2024 Q4 - Annual Results
LAWCS Disco(LAW)2025-02-20 21:12

Financial Performance - Fourth Quarter 2024 total revenue was 37.0million,ayear−over−yearincreaseof437.0 million, a year-over-year increase of 4%[2] - Software revenue for the fourth quarter was 30.8 million, up 5% compared to the fourth quarter of 2023[4] - Fiscal Year 2024 total revenue was 144.8million,up5144.8 million, up 5% compared to fiscal year 2023[4] - Revenue for the three months ended December 31, 2024, was 36,999 million, a 3.5% increase from 35,742millioninthesameperiodof2023[24]−GrossprofitfortheyearendedDecember31,2024,was35,742 million in the same period of 2023[24] - Gross profit for the year ended December 31, 2024, was 107,427 million, compared to 103,142millionin2023,reflectinga4.0103,142 million in 2023, reflecting a 4.0% increase[24] - Non-GAAP gross profit for the year ended December 31, 2024, was 109,142 million, compared to 104,178millionin2023,showinga4.7104,178 million in 2023, showing a 4.7% increase[30] Losses and Expenses - GAAP net loss for the fourth quarter was 25.2 million, compared to 5.8millioninthefourthquarterof2023[4]−ThecompanyreportedaGAAPnetlossof5.8 million in the fourth quarter of 2023[4] - The company reported a GAAP net loss of 55.8 million for fiscal year 2024, compared to 42.2millioninfiscalyear2023[4]−NetlossattributabletocommonstockholdersfortheyearendedDecember31,2024,was42.2 million in fiscal year 2023[4] - Net loss attributable to common stockholders for the year ended December 31, 2024, was 55,774 million, compared to 42,150millionin2023,indicatinga32.442,150 million in 2023, indicating a 32.4% increase in losses[24] - Adjusted EBITDA for the fourth quarter was (4.3) million, compared to (1.0)millioninthefourthquarterof2023[4]−AdjustedEBITDAfortheyearendedDecember31,2024,was(1.0) million in the fourth quarter of 2023[4] - Adjusted EBITDA for the year ended December 31, 2024, was (18,718) million, an improvement from (25,894)millionin2023[30]−TheoperatingmarginfortheyearendedDecember31,2024,was−43(25,894) million in 2023[30] - The operating margin for the year ended December 31, 2024, was -43%, worsening from -36% in 2023[31] - Stock-based compensation expense for the year ended December 31, 2024, was 22.27 million, up from 16.16millionin2023[31]CustomerandProductDevelopment−Thenumberoflargecustomersincreasedto315,upfrom289asofDecember31,2023[4]−NewproductfeaturesintroducedincludeReproductionsanddocument−levelBatesnumbering[4]FutureProjections−Firstquarter2025totalrevenueisexpectedtobeintherangeof16.16 million in 2023[31] Customer and Product Development - The number of large customers increased to 315, up from 289 as of December 31, 2023[4] - New product features introduced include Reproductions and document-level Bates numbering[4] Future Projections - First quarter 2025 total revenue is expected to be in the range of 35.0 million - 37.0million[4]−Fiscalyear2025totalrevenueisprojectedtobeintherangeof37.0 million[4] - Fiscal year 2025 total revenue is projected to be in the range of 145.5 million - 157.5million[4]CashFlowandOperatingActivities−Cashandcashequivalentsattheendoftheperiodwere157.5 million[4] Cash Flow and Operating Activities - Cash and cash equivalents at the end of the period were 52,771 million, a significant decrease from 159,551millionatthebeginningoftheperiod[26]−NetcashusedinoperatingactivitiesfortheyearendedDecember31,2024,was159,551 million at the beginning of the period[26] - Net cash used in operating activities for the year ended December 31, 2024, was (8,749) million, an improvement from (25,531)millionin2023[26]ResearchandDevelopment−ResearchanddevelopmentexpensesfortheyearendedDecember31,2024,were(25,531) million in 2023[26] Research and Development - Research and development expenses for the year ended December 31, 2024, were 51,511 million, slightly down from $51,623 million in 2023[30] - Non-GAAP research and development as a percentage of revenue for the year ended December 31, 2024, was 30%, compared to 31% in 2023[30]