Overview

• Litigation tech platform's Q1 revenue rose 14% yr/yr, beating analyst expectations

• Company's net loss narrowed to $9.6 mln from $11.4 mln a year earlier

• Adjusted EBITDA loss improved 32% yr/yr as customer base and platform adoption grew

Outlook

• CS Disco sees Q2 total revenue of $41.5 mln to $43.5 mln

• Company expects Q2 adjusted EBITDA between $(4.5) mln and $(2.5) mln

• CS Disco forecasts full-year total revenue of $169.25 mln to $178.75 mln

Result Drivers

• PLATFORM ADOPTION - Co said revenue growth was driven by enthusiastic customer reception to its new all-inclusive DISCO platform and advanced AI features

• LARGE CUSTOMER GROWTH - Number of customers with over $100,000 in revenue rose 9% yr/yr

Company press release: ID:nBwnY3F7a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$41.88 mln	$40.28 mln (3 Analysts)
Q1 EPS		-$0.15
Q1 Net Income		-$9.62 mln
Q1 Gross Profit		$31.08 mln
Q1 Operating Expenses		$41.18 mln
Q1 Operating Income		-$10.09 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for CS Disco Inc is $6.00, about 29.6% above its May 5 closing price of $4.63

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