CS Disco, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $36.7 million, a 3% increase from $35.6 million in the same period last year. The growth was primarily driven by new customer acquisitions, which contributed $4.5 million, although this was partially offset by a $3.4 million decline in revenue from existing customers. The company's net loss for the quarter was $11.4 million, compared to a loss of $10.6 million in the prior year, reflecting ongoing challenges in customer usage patterns and market conditions.
The company's cost of revenue increased by 7% to $9.5 million, attributed to higher cloud hosting costs and personnel expenses. Operating expenses rose to $39.8 million, up from $39.1 million a year earlier, with research and development costs seeing a significant increase of 18% to $14.3 million, driven by higher personnel costs due to increased headcount. Conversely, sales and marketing expenses decreased by 8% to $14.5 million, reflecting a reduction in personnel and marketing expenditures.
CS Disco's customer base remains diverse, with a significant portion of revenue generated from usage-based contracts, which accounted for 90% of total revenue in the latest quarter. The company continues to focus on expanding its product offerings and enhancing customer engagement, as evidenced by the recent launch of its ediscovery chatbot, Cecilia. The company also aims to grow its international presence, particularly in the United Kingdom and India, where it sees substantial market opportunities.
As of March 31, 2025, CS Disco had $34.5 million in cash and cash equivalents and $84.3 million in short-term investments. The company reported a cash outflow from operating activities of $10.5 million, an increase from $7.3 million in the previous year, indicating ongoing investment in growth despite the net losses. Looking ahead, CS Disco plans to continue investing in its product development and sales capabilities while monitoring macroeconomic conditions that could impact its operations and customer spending.
About CS Disco, Inc.
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