CS Disco, Inc. reported a revenue of $144.8 million for the fiscal year ending December 31, 2024, marking a 5% increase from $138.1 million in 2023. Despite this growth in revenue, the company experienced a net loss of $55.8 million, compared to a loss of $42.2 million in the previous year. The increase in losses was attributed to higher operating expenses, including a significant impairment charge of $15.2 million related to a primary law intangible asset, which was deemed no longer probable of being completed. The company's Adjusted EBITDA improved to $(18.7) million from $(25.9) million year-over-year, indicating a reduction in operational losses.
The company saw a slight increase in its customer base, growing from 1,463 to 1,478 customers, with large customers—those generating over $100,000 in revenue—rising from 289 to 315. The dollar-based net retention rate also improved to 96% from 92%, reflecting a stable revenue stream from existing customers despite fluctuations in usage. The company’s product offerings, which include DISCO Hold, DISCO Request, and DISCO Ediscovery, continue to be adopted across various sectors, although revenue from existing customers decreased by $4.6 million due to reduced usage.
Strategically, DISCO has focused on enhancing its product offerings and expanding its market presence. The launch of the Cecilia AI platform in late 2023 and early 2024 is a key development aimed at improving user engagement and efficiency in legal processes. The company is also pursuing international expansion, particularly in the United Kingdom and India, where it currently generates less than 10% of its revenue. Additionally, DISCO plans to continue investing in its sales force and channel partnerships to drive customer acquisition and retention.
Operationally, DISCO's total headcount increased to 561 employees as of December 31, 2024, reflecting its commitment to scaling operations. The company has also implemented a share repurchase program, repurchasing approximately $20.1 million worth of stock in 2024. Looking ahead, DISCO anticipates continued investment in research and development, sales and marketing, and infrastructure to support its growth strategy, although it acknowledges the potential impact of macroeconomic conditions on its business performance. The company remains focused on achieving profitability while navigating the challenges of a competitive and rapidly evolving legal technology market.
About CS Disco, Inc.
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