CS Disco Inc (LAW) 2023 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the CS Disco's Third Quarter Fiscal Year 2023 Conference Call. (Operator Instructions)

女士們、先生們，感謝您的耐心等待，歡迎參加 CS Disco 2023 財年第三季電話會議。 （操作說明）

I would now like to hand the call over to your first speaker today, Head of Investor Relations, Aleksey Lakchakov. Please go ahead, sir.

現在我把電話交給今天的第一位發言人，投資者關係主管阿列克謝·拉克恰科夫先生。請您發言，先生。

Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Disco's third quarter of 2023. With me on today's call are Scott Hill, Disco's Chief Executive Officer; and Michael Lafair, Disco's Chief Financial Officer.

下午好，感謝各位參加今天的電話會議，共同探討迪斯可公司2023年第三季的財務表現。今天與我一同參加會議的還有迪斯科公司執行長斯科特·希爾和首席財務官邁克爾·拉費爾。

Today's call will include forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial outlook and future performance and our future capital expenditures, market opportunity, market position, product strategy and growth opportunities and developments in the legal technology industry.

今天的電話會議將包含符合 1995 年《私人證券訴訟改革法案》安全港條款的前瞻性陳述，包括但不限於有關我們財務展望和未來業績、未來資本支出、市場機會、市場地位、產品戰略和增長機會以及法律技術行業發展的陳述。

In addition to our prepared remarks, our earnings press release, SEC filings and a replay of today's call can be found on our Investor Relations website at ir.cstesco.com. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.

除了我們事先準備好的發言稿外，您還可以在我們的投資者關係網站ir.cstesco.com上找到我們的盈利新聞稿、提交給美國證券交易委員會（SEC）的文件以及今天電話會議的錄音。前瞻性陳述涉及已知和未知的風險和不確定性，這些風險和不確定性可能導致我們的實際績效、表現或成就與前瞻性陳述中明示或暗示的內容有重大差異。

Forward-looking statements represent our management's beliefs and assumptions only as of the date made. Information on factors that could affect the company's financial results is included in its filings with the SEC from time to time, including the section entitled Risk Factors in the company's quarterly report on Form 10-Q for the quarter ended June 30, 2023, filed with the SEC on August 9, 2023, and the company's upcoming Form 10-Q for the quarter ended September 30, 2022.

前瞻性陳述僅代表我們管理階層截至作出之日的信念和假設。可能影響公司財務表現的因素資訊包含在本公司不時向美國證券交易委員會（SEC）提交的文件中，包括本公司於2023年8月9日向SEC提交的截至2023年6月30日的季度報告（10-Q表格）中題為「風險因素」的部分，以及公司即將提交的截至2022年9月30-Q122222222年10-Q12222222222222222-Q30-Q1022222222222222-Q10-Q1022222222222222222-Q

In addition, during today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP financial measures and a discussion of the limitations of using non-GAAP measures versus their closest GAAP equivalents is available in our earnings release.

此外，在今天的電話會議中，我們將討論非公認會計準則（非GAAP）財務指標。這些非GAAP財務指標是依照公認會計準則（GAAP）編製的財務績效指標的補充，而非替代或優於後者。 GAAP和非GAAP財務指標之間的調節表以及使用非GAAP指標相對於其最接近的GAAP指標的局限性的討論，請參閱我們的盈利報告。

And with that, I'd like to turn the call over to Scott.

接下來，我想把電話交給史考特。

Thanks, Aleksey. Good afternoon, everyone, and thank you for joining us. For those of you who I have not yet met, I'm Scott Hill. I assumed the role of Chief Executive Officer about 2 months ago. Before we dive into the results, I would like to briefly introduce myself. I was the CFO of a company called Intercontinental Exchange, better known as ICE, from 2007 until 2021. I joined ICE not long after its IPO and helped lead a company that used innovative technology to fundamentally transform commodity and financial markets and generate strong growth and investor returns.

謝謝，阿列克謝。大家下午好，感謝各位的參與。對於還不認識的各位，我叫做史考特‧希爾。我大約兩個月前就任執行長一職。在深入探討績效之前，我想先簡單介紹一下自己。從2007年到2021年，我曾擔任洲際交易所（Intercontinental Exchange，簡稱ICE）的財務長。我在ICE上市後不久就加入了公司，並幫助領導這家公司運用創新技術從根本上改變了大宗商品和金融市場，並創造了強勁的成長和投資者回報。

I met Disco just after I retired from ICE and saw a company similarly poised to use technology to transform the legal industry and generate strong growth and returns. I jumped at the chance to join Disco's Board of Directors in June of 2021 shortly before we went public. More recently, the Board asked me to step into the CEO role on an interim basis while we conduct the search for a permanent CEO.

我從美國移民及海關執法局（ICE）退休後不久便結識了Disco公司，當時我發現這家公司也同樣具備利用科技變革法律行業並實現強勁增長和豐厚回報的潛力。 2021年6月，在公司上市前不久，我抓住機會加入了Disco的董事會。最近，董事會邀請我暫時擔任執行長一職，同時我們也積極尋找正式的執行長人選。

We are focused on finding a leader with demonstrated experience scaling businesses, leading high-functioning organizations and building, enhancing and maintaining a strong cultural foundation. Once we find our new CEO, I look forward to remaining on Disco's Board of Directors. Until then, I will strive every day to make a meaningful and positive contribution to the company, its employees, its customers and its shareholders. There's a lot of work to be done.

我們致力於尋找一位擁有豐富企業規模化經驗、能夠領導高效團隊並建立、提升和維護強大企業文化基礎的領導者。一旦找到新任首席執行官，我期待繼續留在Disco董事會。在此之前，我將竭盡全力，每天為公司、員工、客戶和股東做出有意義且積極的貢獻。我們還有很多工作要做。

We have gone through a difficult couple of months, but we remain steadfast and focused on building the leading legal technology company. I'm here to enable that strategic vision by removing obstacles and making decisions that propel the business forward. I'm excited to be a bridge to Disco's next chapter.

我們經歷了艱難的幾個月，但我們始終堅定不移地致力於打造領先的法律科技公司。我將透過掃清障礙、做出推動業務發展的決策，來實現這個策略願景。我很高興能成為Disco邁向新篇章的橋樑。

Although I've been here only a short while as CEO, and I'm still very much diving into the core of our operations, I've already spent considerable time speaking to our leadership team across all functions, meeting with our customers around the country and listening to our employees. The magic that makes Disco unique continues to permeate our company. Before diving into the quarter, I wanted to share some of my initial observations.

雖然我擔任CEO的時間不長，也還在深入了解公司的核心運營，但我已經花了不少時間與各職能部門的領導團隊交流，與全國各地的客戶會面，並傾聽員工的心聲。 Disco的獨特魅力依然滲透在我們公司的各個角落。在深入探討本季業績之前，我想先分享一些我的初步觀察。

First, I'm very impressed with the employees and talent we have at Disco across all functional areas. Our team continues to work incredibly hard to build the best company possible. Their commitment and dedication in the face of numerous challenges is inspiring. Disco's ability to succeed is not dependent upon a single person, but a collective team focused on innovation and customer service. That is the DNA of the company. And that is what will help us regain our footing and enable our future success.

首先，我對Disco各職能部門的員工和人才印象深刻。我們的團隊一直兢兢業業，致力於打造一家卓越的公司。面對諸多挑戰，他們的奉獻和敬業精神令人敬佩。 Disco的成功並非取決於某一個人，而是取決於一個專注於創新和客戶服務的團隊。這正是公司的DNA。也正是這種精神將幫助我們重振旗鼓，並成就我們未來的成功。

Second, Disco has extraordinary products. Our customers love them. Having gone on several trips to visit our largest and most sophisticated users, the anecdotes I've been hearing are eye-opening, and I see the beauty of our platform in a lot more detail. I've heard firsthand from general counsels and law firm partners and associates about the time savings and simplicity Disco has brought to their legal operations. And when we showcase in demo, our upcoming AI-focused products like Cecilia Q&A or Cecilia Timelines, their eyes light up. They see the power of our solutions and how it will positively impact the future of legal work.

其次，Disco 的產品非常出色。我們的客戶都很喜歡它們。我曾多次拜訪我們規模最大、最專業的客戶，聽到的回饋讓我大開眼界，也讓我更深入地了解了我們平台的優勢。我親耳聽到總法律顧問、律師事務所合夥人和律師們講述 Disco 如何為他們的法律業務節省時間、簡化流程。當我們示範即將推出的以人工智慧為核心的產品，例如 Cecilia Q&A 或 Cecilia Timelines 時，他們的眼睛都亮了起來。他們看到了我們解決方案的強大之處，以及它將如何積極地影響法律工作的未來。

Third, I'm confident in our product road map and strategy. We have world-class talent on the product and engineering side of the house and the capabilities to build innovative solutions that can transform the legal industry. And the pace and quality of that product development has never been better.

第三，我對我們的產品路線圖和策略充滿信心。我們在產品和工程方面擁有世界一流的人才，並具備打造能夠變革法律產業的創新解決方案的能力。而且，產品開發的速度和品質也達到了前所未有的高度。

Fourth, we've made progress within our go-to-market organization. We had our best revenue quarter as a company in Q3 and that momentum carried into October. However, there's more work to be done. We are operating in a market with embedded legacy software providers and displacing those entrenched competitors takes time and requires great focus and execution. In particular, we are investing to enhance our approach to enterprise clients, both corporate legal functions and large law firms.

第四，我們在市場拓展方面取得了進展。第三季度是公司營收最高的一個季度，這股動能延續到了十月。然而，我們仍有許多工作要做。我們所處的市場充斥著根深蒂固的傳統軟體供應商，要取代這些競爭對手需要時間，也需要高度的專注和執行力。特別是，我們正在加大投入，以改善我們面向企業客戶的服務方式，包括企業法務部門和大型律師事務所。

Fifth, we need to engage with and invest in our most important asset, our people. There are cultural elements at Disco that need to be improved, and that is one of my top priorities. Building a great company culture takes time, and we are committed to promoting a constructive and supportive work environment that will enable our team to realize their full potential to the benefit of our customers and shareholders.

第五，我們需要重視並投資於我們最重要的資產—員工。迪斯可的一些文化因素需要改進，這也是我的首要任務之一。打造卓越的企業文化需要時間，我們致力於創造一個積極向上、互相支持的工作環境，使我們的團隊能夠充分發揮潛力，從而為客戶和股東創造價值。

We are already taking the important first steps of this journey. With that, let's dive into our performance during the third quarter. Revenues for Q3 2023 was a record $34.9 million. Adjusted EBITDA was negative $4.5 million, a sequential improvement from the second quarter. We ended the quarter with $158 million of cash, no debt and 1,449 customers, 10% more than a year ago. Michael will provide more details about the quarter shortly.

我們已邁出了這段旅程的重要第一步。接下來，讓我們深入了解第三季的業績。 2023年第三季營收創下3,490萬美元的歷史新高。調整後EBITDA為負450萬美元，較第二季有所改善。季度末，我們擁有1.58億美元現金，零負債，客戶數量為1449家，比去年同期增長10%。 Michael稍後將提供更多關於本季的詳情。

Within our core eDiscovery business, we have continued to make progress. We have seen a reacceleration in usage over the last several months, which continued into October. We saw quarter-over-quarter growth in both active and early case assessment usage, which is very encouraging. Although ECA is still the fastest-growing data segment, we are also seeing growth in active. This is attributed to the hard work our sales team is doing to attract new matters and gigabytes to our platform in addition to usage expansion among our existing customer base.

在我們的核心電子取證業務領域，我們持續取得進展。過去幾個月，我們的使用量再次加速成長，這趨勢延續到了10月份。活躍案件和早期案件評估的使用量均實現了環比增長，這令人非常鼓舞。儘管早期案件評估仍然是成長最快的資料細分領域，但活躍案件的使用量也在成長。這歸功於我們銷售團隊的辛勤工作，他們不僅努力吸引新的案件和數據量加入我們的平台，也得益於現有客戶群使用量的增加。

Our product and engineering teams released some important new eDiscovery features during the third quarter. We introduced self-service capabilities for Slack, which is by far the fastest-growing data set among our customers. This new capability will allow customers to upload documents into eDiscovery without needing Disco support, considerably reducing total ingest time for Slack data.

在第三季度，我們的產品和工程團隊發布了一些重要的電子取證新功能。我們推出了針對 Slack 的自助服務功能，Slack 是我們客戶中成長最快的資料集。這項新功能允許客戶無需 Disco 支援即可將文件上傳到電子取證系統，從而顯著縮短 Slack 資料的總導入時間。

Our team also released eDiscovery annotation, which allows much more intuitive and flexible collaboration between team members within Disco eDiscovery. Customers can now annotate specific documents, alert their team and start comment threads creating a richer workflow for the legal team. We also added a witness management module to our case builder product, a task that has been historically performed in Excel and Word can now efficiently be conducted in a central contextually rich interface.

我們的團隊也發布了電子取證註釋功能，使 Disco 電子取證軟體中的團隊成員能夠更直觀、更靈活地協作。客戶現在可以對特定文件進行註釋、提醒團隊成員並發起評論討論，從而為法律團隊創建更豐富的工作流程。此外，我們還在案件建立器產品中加入了證人管理模組，這項以往需要在 Excel 和 Word 中完成的任務，現在可以在一個集中且內容豐富的介面中高效完成。

Finally, we continue to enhance our Cecilia Q&A capabilities to match how our users work with the addition of scoping. Scoping allows users additional control over the content being reviewed, such as documents related to a specific custodian. This allows our customers to find answers faster within specific document sets. This was the single most requested product enhancement to Cecilia based upon early customer trials.

最後，我們持續增強 Cecilia 的問答功能，使其更符合使用者工作的方式，新增了範圍限定功能。範圍限定功能使用戶能夠更好地控制審核內容，例如與特定保管人相關的文件。這有助於客戶在特定文件集中更快找到答案。根據早期客戶試用回饋，這是 Cecilia 用戶最希望看到的產品改進。

In addition to delivering a solid third quarter and a fast start in October, our sales team has been busy introducing our customers to our new Disco AI platform, Cecilia. We've embarked upon a nationwide customer road show where we have been showcasing Cecilia Q&A, an integrated AI chatbot for large-scale eDiscovery as well as Cecilia Timelines, which automatically generates timelines from preexisting legal documents.

除了第三季業績穩健成長以及十月份的良好開局之外，我們的銷售團隊也積極向客戶介紹我們全新的 Disco AI 平台 Cecilia。我們已啟動全國巡迴客戶推介會，重點展示了 Cecilia Q&A（一款用於大規模電子取證的整合式 AI 聊天機器人）以及 Cecilia Timelines（可根據現有法律文件自動產生時間軸）。

We are also previewing several other Cecilia skills on our product road map. Importantly, Cecilia is running in beta in support of over 20 active customer matters. Those customers are using Cecilia to rapidly understand critical facts in opposing productions, prepare for depositions and gain insights into critical case strategy questions.

我們也計劃在產品路線圖中預覽 Cecilia 的其他幾項功能。值得一提的是，Cecilia 目前處於測試階段，為 20 多個活躍客戶案件提供支援。這些客戶正在使用 Cecilia 快速了解對方提交資料中的關鍵事實，為審判做準備，並深入了解案件策略的關鍵問題。

I've had the opportunity to join dozens of our AI roadshow events in my first few weeks and the power of this technology to help our customers deliver better legal outcomes for their clients is clear. We've heard customers talk about how Cecilia can help minimize the time required for tedious tasks such as building the timeline. I must have for any case but also time consuming and expensive from a billing perspective.

在加入公司的前幾週，我有幸參加了數十場人工智慧巡迴推廣活動，這項技術在幫助客戶為其客戶取得更佳法律成果方面的強大作用顯而易見。我們聽到客戶談到，Cecilia 可以幫助他們最大限度地減少諸如製定時間線等繁瑣任務所需的時間。雖然時間軸對於任何案件都至關重要，但從計費角度來看，它既耗時又昂貴。

Customers also appreciate the efficiencies of document interrogation using Cecilia Q&A. In fact, one customer highlighted some critical documents their prior review had missed, but with Cecilia, both surfaced. We believe that the risks and costs associated with not using technology like Cecilia to augment layer capabilities is high.

客戶也對使用 Cecilia Q&A 進行文件查詢的效率表示讚賞。事實上，一位客戶指出，他們先前的審查遺漏了一些關鍵文檔，但藉助 Cecilia，這些文檔都被發現了。我們認為，不使用 Cecilia 等技術來增強層級功能所帶來的風險和成本很高。

We are focused on continuing to build customer interest in generating financial returns on this important investment. We also continue to invest in our long-term strategy to become an end-to-end legal technology provider. You saw us announce yesterday that we have licensed Fast cases comprehensive U.S. primary law data. This will give us and our customers access to all federal and state laws, regulations and core rules.

我們致力於持續提升客戶對這項重要投資的興趣，進而創造財務回報。同時，我們也將繼續投資於長期策略，力求成為端到端的法律科技提供者。正如您昨天所看到的，我們已獲得 Fast Cases 的授權，可以使用其全面的美國主要法律數據。這將使我們和我們的客戶能夠存取所有聯邦和州法律、法規和核心規則。

Integrating facts and evidence with primary law into a single platform will further our ability to enable legal professionals to deliver optimal outcomes for their clients by leveraging our leading innovations around AI and intelligent workflow solutions. We look forward to sharing additional aspects of our strategy over the coming quarters.

將事實和證據與基本法律整合到一個統一的平台中，將進一步提升我們幫助法律專業人士利用我們在人工智慧和智慧工作流程解決方案方面的領先創新能力，從而為客戶提供最佳結果的能力。我們期待在未來幾季分享我們策略的更多方面。

With regard to the path to profitability, we have made impressive progress and we have much lower operating expenses now than in Q3 of last year. My early observation though is that the way in which we have allocated resources may have swung too far and too fast from a growth-only focus to cost cutting. We have to make sure we have a balance between cost efficiency and growth investments.

在實現盈利方面，我們取得了令人矚目的進展，目前的營運費用遠低於去年第三季。但我初步觀察到，我們資源分配的方式可能過於激進，速度也過快，從單純追求成長轉向了成本削減。我們必須確保在成本效益和成長投資之間取得平衡。

I believe a balanced approach to profitability that combines prudent expense and resource management, along with investments in our people, products and sales will result in a more sustainable, profitable and growing company. Two months into this role, I strongly believe we have the people, the products and the customer relationships to reenergize our top line. We will have more concrete full year 2024 guidance on our fourth quarter earnings call in February.

我相信，採取平衡的獲利策略，將審慎的費用和資源管理與對員工、產品和銷售的投資相結合，將使公司更具可持續性、盈利能力和成長潛力。上任兩個月以來，我堅信我們擁有重振營收所需的人才、產品和客戶關係。我們將在二月的第四季財報電話會議上提供更具體的2024年全年業績指引。

With that, I'll hand it over to Michael.

這樣，我就把它交給麥可了。

Thank you, Scott. In Q3 2023, revenue was $34.9 million, although year-over-year revenue was up only 1%, we are starting to see a pickup in eDiscovery usage. As Scott mentioned, we are seeing growth in both ECA and active data on our platform. Within review, revenue came in below where it was in Q2 due to a $1 million review that ended, offset somewhat by the growth of our eDiscovery business.

謝謝Scott。 2023年第三季度，我們的營收為3,490萬美元，雖然年成長僅1%，但我們開始看到電子取證業務的使用量有所回升。正如Scott所提到的，我們平台上的ECA（電子取證評估）和活躍數據量都在成長。在回顧期內，由於一項100萬美元的審查項目結束，營收低於第二季度，但電子取證業務的成長在一定程度上抵消了這一影響。

In discussing the remainder of the income statement, please note that unless otherwise specified, all references to our gross margin, operating expenses and net loss are on a non-GAAP basis. Adjusted EBITDA is also a non-GAAP financial measure. Our gross margin in Q3 was 75%. As we mentioned before, our gross margins fluctuate from period to period based on the nature of our customers' usage, for example, the amount and types of data ingested and managed on our platform.

在討論損益表的其餘部分時，請注意，除非另有說明，所有提及的毛利率、營業費用和淨虧損均採用非公認會計準則 (非GAAP)。調整後 EBITDA 也是非GAAP財務指標。我們第三季的毛利率為75%。正如我們之前提到的，我們的毛利率會根據客戶的使用情況而波動，例如，客戶在我們平台上接收和管理的資料量和資料類型。

Sales and marketing expense for Q3 was $15.4 million or 44% of revenue compared to 54% of revenue in Q3 of the prior year. This represents a decrease of over $3.1 million in the quarter year-on-year. The decrease was primarily driven by a decrease in sales and marketing personnel costs. Research and development expense for Q3 was $10.1 million or 29% of revenue compared to 40% of revenue in Q3 of the prior year. This represents a decrease of approximately $3.7 million in the quarter year-on-year. This decrease was primarily driven by a reduction in research and development personnel costs.

第三季銷售和行銷費用為1,540萬美元，佔營收的44%，而上年同期為54%。這比上年同期減少了310多萬美元。減少的主要原因是銷售和行銷人員成本的下降。第三季研發費用為1,010萬美元，佔營收的29%，而上年同期為40%。這比上年同期減少了約370萬美元。減少的主要原因是研發人員成本的降低。

General and administrative expense in Q3 was $6.6 million or 19% of revenue compared to 23% of revenue in Q3 of the prior year. This represents a decrease of approximately $1.3 million in the quarter year-on-year. The majority of the decrease was driven by a reduction in general and administrative personnel costs. Operating loss in Q3 was negative $5.8 million, representing an operating margin of negative 17% compared to negative 41% in Q3 of the prior year.

第三季一般及行政費用為660萬美元，佔營收的19%，而上年同期為23%。這比上年同期減少了約130萬美元。費用減少的主要原因是行政人員成本的降低。第三季營業虧損為580萬美元，營業利益率為-17%，而上年同期為-41%。

In total, our Q3 operating expenses were over $8.1 million lower than Q3 of the prior year, representing an approximate 20% reduction in operating expenses. Adjusted EBITDA was negative $4.5 million in Q3, representing an adjusted EBITDA margin of negative 13% compared to adjusted EBITDA margin of negative 38% in Q3 of the prior year. These results represented an adjusted EBITDA improvement of $8.5 million from Q3 of last year, bringing us closer to profitability.

第三季總營運費用較上年同期減少超過810萬美元，降幅約20%。第三季調整後EBITDA為負450萬美元，調整後EBITDA利潤率為負13%，而上年同期為負38%。這些結果較上年同期調整後EBITDA改善850萬美元，使我們離獲利更近了一步。

Net loss in Q3 was $3.9 million or negative 11% of revenue compared to a net loss of $14.1 million or negative 41% of revenue in Q3 of the prior year. Net loss per share for Q3 was negative $0.06 per share compared to negative $0.24 per share in Q3 of the prior year. Turning to the balance sheet and cash flow statement. We ended Q3 with $157.7 million in cash and cash equivalents and no debt. Operating cash flow in the first 3 quarters of 2023 was negative $28.7 million compared to negative $36.7 million in the same period of the year prior.

第三季淨虧損為390萬美元，佔營收的11%，而上年同期淨虧損為1,410萬美元，佔營收的41%。第三季每股淨虧損為0.06美元，而上年同期每股淨虧損為0.24美元。接下來來看資產負債表和現金流量表。截至第三季末，我們持有現金及現金等價物1.577億美元，且無負債。 2023年前三個季度的經營活動現金流為負2,870萬美元，去年同期為負3,670萬美元。

Now turning to the outlook. For Q4 2023, we are providing revenue guidance in the range of $34 million to $36 million and adjusted EBITDA guidance in the range of negative $7 million to negative $5 million. For fiscal year 2023, we are providing revenue guidance in the range of $136.3 million to $138.3 million and adjusted EBITDA guidance in the range of negative $31.9 million to negative $29.9 million.

現在來看展望。對於2023年第四季度，我們預計營收將在3,400萬美元至3,600萬美元之間，調整後EBITDA預計在-700萬美元至-500萬美元之間。對於2023財年，我們預計營收將在1.363億美元至1.383億美元之間，調整後EBITDA預計在-3190萬美元至-2990萬美元之間。

As Scott mentioned, we will provide our 2024 revenue and adjusted EBITDA targets on our next earnings call. At this point, we are not planning to significantly increase spending from current levels. However, we do expect to make some additional investments to set the company up for success in 2024 and beyond.

正如史考特所提到的，我們將在下次財報電話會議上公佈2024年的營收和調整後EBITDA目標。目前，我們暫無大幅增加支出的計畫。但是，我們預計會進行一些額外的投資，以確保公司在2024年及以後取得成功。

Now I would like to turn the call over to the operator to open up the line for Q&A. Operator?

現在我想把電話轉給接線員，以便進行問答環節。接線生？

(Operator Instructions) Our first question comes from the line of Derrick Wood from TD Cowen.

（操作說明）我們的第一個問題來自 TD Cowen 公司的 Derrick Wood。

This is Cole on for Derrick. Just want to get a better picture of how sales rep productivity has been trending in the quarter. I know that last quarter, you called enablement initiatives. If you guys could just give us an update on that...

我是Cole，替Derrick問。我想更清楚地了解本季銷售代表的生產力趨勢。我知道上個季度你們啟動了賦能計畫。如果你們能給我們更新一下這方面的情況就太好了…

Thanks for the question. So we're really pleased about the performance in Q3. It was a record quarter, the best quarter in the history of the company. And so in terms of rep productivity, we're pleased with the direction of the business. And as we mentioned in our prepared remarks, we're very, very pleased with the pace of where the business is going and how the usage on the platform, in particular, with respect to eDiscovery has picked up into October. So we're pleased with how things are going.

感謝您的提問。我們對第三季的業績非常滿意。這是一個創紀錄的季度，也是公司史上業績最好的季度。就銷售代表的效率而言，我們對業務的發展方向感到滿意。正如我們在事先準備好的發言稿中提到的，我們對業務的發展速度以及平台的使用情況，特別是電子取證方面的使用情況，都非常滿意，尤其是在10月份。總之，我們對目前的進展非常滿意。

Great. And then just one more. On the net new customer number, that was lower than it's been in the past couple of quarters in with the sales rep productivity, has that productivity shifted to more of a focus on existing customers and selling into them more? Or what are you seeing on the new customer front?

好的。最後一個問題。關於新增客戶數量，這個數字比過去幾季都要低，銷售代表的效率是否有所下降？他們的工作重心是否更多地轉移到了現有客戶身上，並努力向他們推銷產品？或者，您在新增客戶方面看到了什麼？

Yes. It's Scott, and I'll take this. And it's interesting the way you phrased the question. It's not a focus on existing or a focus on new, it's a focus on both. And that's one of the things in the couple of months that I've been here that I think we need to do a better job from a sales standpoint is. It's not corporate or transactional. It's not corporate or Amlaw. It's all of that. And so I was pleased to see the customer count up again 10% year-over-year.

是的，我是史考特，我來回答。你提問的方式很有意思。重點不是現有客戶還是新客戶，而是兩者兼顧。這是我來這裡幾個月以來，我認為我們在銷售方面需要改進的地方之一。它不局限於企業客戶或交易客戶，也不局限於企業客戶或律師事務所客戶，而是涵蓋所有這些方面。所以我很高興看到客戶數量比去年同期成長了10%。

Pleased to see that it's trended up as we've moved through the year. And I think that's a great opportunity for us. It gives us a larger customer base to sell into. But it's also the case that we've got this great existing set of customers that I think we can do a better job of selling into as well. And so I'd like to see the customer count grow. We're clearly focused on continuing that trend. But we -- again, we want to do both.

很高興看到，隨著年內業績的持續成長，這對我們來說是一個絕佳的機會。它為我們提供了更大的客戶群。同時，我們現有的客戶群也非常優秀，我認為我們也能更好地服務他們。因此，我希望看到客戶數量繼續增長。我們顯然正致力於保持這一成長動能。但是，我們——再次強調——希望兩者兼顧。

And I think in the quarter, we did a pretty good job of that. We saw some growth in existing customers. We saw growth in new customers, and that's a trend that I'm really working hard with Luke and the sales team to focus on it as we move forward and to take the steps that we can do to enable that team to be able to not do either or but to do both.

我認為本季我們在這方面做得相當不錯。我們看到現有客戶有所成長，新客戶也有所成長。我正與盧克和銷售團隊密切合作，努力將這一趨勢作為我們未來發展的重點，並採取一切可能的措施，使團隊能夠兼顧兩者，而不是只做其中之一。

Our next question comes from the line of Scott Berg from Needham & Company.

我們的下一個問題來自 Needham & Company 的 Scott Berg。

This is Rob Morelli on for Scott Berg. Your 4Q revenue guidance is a touch life on the implied guide last quarter. Is this a difference based on less new customers signing (inaudible) or our existing customers, I guess, using is usage less than what was previously expected?

這裡是羅伯·莫雷利，替史考特·伯格發言。您第四季的營收預期與上季的預期略有不同。這是因為新客戶簽約量減少（聽不清楚）還是因為現有客戶的使用量低於預期？

Yes. So we feel good about the usage and in particular, on eDiscovery into October into the beginning of Q4. We -- in terms of the guidance, we have provided guidance based on what we believe the number will land based on all the information we have as of today, and we feel good about that number. Obviously, we would like to beat the guidance, but the number that we provided is the number based on all the tax we have today that we believe we're going to land based on where we are now.

是的。我們對目前的使用情況，尤其是電子取證業務在10月份到第四季初的表現感到滿意。至於業績指引，我們根據目前掌握的所有信息，給出了我們認為最終結果的指引，我們對這個數字感到樂觀。當然，我們希望能夠超越指引，但我們給出的數字是基於我們目前掌握的所有信息，並根據我們目前的實際情況做出的預測。

Got it. And then with the addition of primary law, what does that do for the DISCO platform competitively? And also how do the economics work for Disco?

明白了。那麼，如果加入主要法律，這對 DISCO 平台的競爭力有何影響？ Disco 的經濟效益又如何呢？

Yes. So I'll start, and then I'll let Michael walk you through the financial aspects of it. But I think the way that I would think about it is we've built an amazing platform that today helps lawyers understand all of the facts and the evidence in their case. And so whether it's in our eDiscovery platform today or using Case Builder or we've been demoing Cecilia and basically interrogating Cecilia on all your facts and evidence.

是的。那我先來，然後讓麥可帶你了解財務方面的問題。但我認為，我們打造了一個非常棒的平台，它能幫助律師們理解案件中的所有事實和證據。無論是在我們現有的電子取證平台，還是使用案件建構器，或是我們之前示範過的Cecilia（我們用它來分析所有事實和證據），它都能做到這一點。

It makes the workload of understanding your facts far more efficient than it has historically been. What the primary law does is allow us to go from what are my facts to what law is relevant to those facts? How do the facts and law intersect? And again, I think that's a really big step forward on our overall goal strategically to be an end-to-end platform, a place where lawyers can come in and work with their facts and evidence come in and understand the relevant laws and use all of that information to determine what the best path forward is with their clients.

它大大提高了理解事實的工作效率，遠勝以往。這項主要法律的作用在於，它使我們能夠從「我掌握了哪些事實」出發，直接找到與這些事實相關的法律依據，並分析事實與法律的交匯點。我認為這對我們實現戰略目標——打造一個端到端的平台——而言，是向前邁出的一大步。在這個平台上，律師可以處理他們的事實和證據，理解相關的法律，並利用所有這些信息，為客戶制定最佳的解決方案。

And so I think that's the great opportunity. Imagine so in a world where Cecilia becomes an expert on 100% of your documents and your facts. Imagine if that witness also knew 100% of the relevant law. How powerful that can be and so I think for what's a relatively small investment, we have the opportunity to create an incredibly powerful offering for our customers.

所以我認為這是一個絕佳的機會。試想一下，如果塞西莉亞能成為您所有文件和事實的專家，那會是怎樣一番景象？如果這位證人還能掌握所有相關的法律，那又會是怎樣一番景象？這將多麼強大​​！因此，我認為，只需相對較小的投資，我們就有機會為客戶打造一項極其強大的服務。

Michael, you want to talk a little bit about the financial?

邁克爾，你想稍微談談財務方面的問題嗎？

In terms of the financial impact of this, I mean we spend -- it's a $14 million investment that gives us access to all of primary law, as we described in the release that went out yesterday for 5 years as well as regular updates of that law. So when I go back from almost 6 years ago when I joined the business, this has been a vision of the business from, I believe, the inception and especially from -- since when I joined.

就財務影響而言，我的意思是，我們投入了1400萬美元，這筆投資使我們能夠獲得所有主要法律的訪問權限，正如我們在昨天發布的新聞稿中所述，有效期為5年，並且還能定期獲得這些法律的更新。所以，當我回顧近6年前我加入公司時，我相信，這從公司創立之初，尤其是我加入公司以來，一直是公司的願景。

And as Scott mentioned, the concept that we have, the evidence and we have our technology to help review that evidence. And then we also have the law at the same time that we're going to build into the product. It's very, very powerful. We also have an option to renew for another 5 years, and then we have additional options to renew beyond that. So it's a really exciting opportunity for not a large investment from a cash perspective to build it into our product and give our customers really the full spectrum from the eDiscovery piece to what is the law.

正如斯科特所提到的，我們擁有這樣的理念、證據以及幫助我們審查證據的技術。同時，我們也將把相關法律融入產品中。這非常強大。我們也提供五年續約選項，之後還可以選擇再次續約。因此，這是一個非常令人興奮的機會，無需投入大量資金即可將其融入我們的產品，從而為客戶提供從電子取證到法律解讀的全方位服務。

Got it. That's helpful. I guess with that option, is it another $14 million investment after 5 years? Or is there discrete...

明白了，這很有幫助。我猜如果選擇這個方案，是不是五年後又要再投資1400萬美元？還是說還有其他隱性費用…

We haven't disclosed what the option price is, but it's -- we just haven't disclosed that.

我們沒有透露選擇權價格，但它就是——我們只是還沒有透露而已。

Our next question comes from the line of Mark Schappel from Loop Capital Markets.

我們的下一個問題來自 Loop Capital Markets 的 Mark Schappel。

Michael, I was wondering if you could just provide some additional details on your activity around your product. For instance, are you expecting any additional legal matters to kind of wind down on the platform in the next quarter or 2?

邁克爾，我想請你提供一些關於你產品相關活動的更多細節。例如，你預期未來一、兩個季度內平台上的其他法律問題是否會逐漸減少？

Yes. I mean, so all of our business, as you know, is usage-based or most of our business is usage based. So matters will end when a case ends or when a case may settle or a judge may make a decision in one way or another that could cause the customer to actually have to load up a whole bunch of new data on the system or in the alternative, if the case settles, remove data from the system.

是的。我的意思是，正如您所知，我們所有的業務，或者說大部分業務，都是基於使用量的。所以，當案件結束、達成和解，或是法官做出某種決定時，事情就會結束。這些決定可能導致客戶需要在系統中載入大量新數據，或者，如果案件和解，則需要從系統中刪除資料。

So it's -- the review piece, and we mentioned this in the script, there was a large review that ended in the prior quarter in Q2 that was a significant amount of -- it was a $1 million-plus review. That review ended and had an impact on our Q3 numbers. And in terms of the guidance we've provided and we've provided some color on October, we feel really good about eDiscovery and the usage on eDiscovery that's kind of happened over the last couple of months and into October.

所以，關於審查部分，我們在腳本中也提到過，上個季度（第二季）結束了一項金額龐大的審查，金額超過100萬美元。這項審查的結束對我們第三季的業績產生了影響。至於我們提供的業績指引，以及我們對10月份情況的一些說明，我們對電子取證以及過去幾個月和10月份的電子取證使用情況感到非常樂觀。

Okay. And then, Michael, with respect to your prepared remarks around needing to make some additional investments next year. I was wondering you could just elaborate a little bit more on that.

好的。邁克爾，關於你之前提到的明年需要追加投資的問題，我想請你再詳細闡述一下。

Yes. So it's Scott. Let me take that one. So I think from my standpoint, 2 months into the role, there are a couple of areas that I think are important for us, as I said in my prepared remarks, to strike a balance between prudent investment and not losing sight of the opportunity to grow. I look at an amazing group of people inside the company and an amazing set of products that have been developed and are being developed.

是的，是史考特。讓我來回答這個問題。我認為，就我上任兩個月以來的經驗來看，有幾個方面對我們來說很重要，正如我在準備好的發言稿中提到的，那就是在審慎投資和把握成長機會之間取得平衡。公司內部有一支非常優秀的團隊，並且已經開發並正在開發一系列非常優秀的產品。

And again, that's just not my opinion. That's for me spending probably 3 or 4 dozen meetings with customers. But I think it's important that we really enhance the ability of our sales team to get out and sell those great products to our customers. As I said earlier, the growing number of customers gives us a growing amount of opportunity -- there are a couple of places where, for example, we really have dialed back significantly in our investment in our sales operations function.

再說一遍，這並非我個人的觀點。這只是我與客戶進行了三、四十次會面後得出的結論。但我認為，真正提升銷售團隊的銷售能力，讓他們更能向客戶推銷這些優質產品，這一點至關重要。正如我之前所說，客戶數量的成長為我們帶來了越來越多的機會——例如，在某些方面，我們已經大幅削減了對銷售營運職能的投入。

We largely be disinvested in our customer success function. And all of those are necessary to support the sales team to be successful with customers. And so we're going to make some investments to improve those areas and enhance those areas. So our sales team can focus on what they do best, which is sell. The other thing I think the company has done a really good job this year of focusing on performance management with regards to the field sales. But I think it left us a little under capacity in the field right now.

我們之前在客戶成功方面投入不足。而這些對於支援銷售團隊成功服務客戶至關重要。因此，我們將加大投入，改善和加強這些領域，以便我們的銷售團隊能夠專注於他們最擅長的銷售工作。另外，我認為公司今年在現場銷售的績效管理方面做得非常出色。但我認為這導致我們目前的現場銷售能力略有不足。

And so we're going to make some investments to make sure we've got the right capacity in the field. So those investments are about further enabling the sales team about supplementing the sales team to give us the team on the field that has the opportunity to go out and consistently win because ultimately, as we move along the path towards profitability, I think a path that is a combination of prudent investment and top line growth is really the only sustainable way to get there.

因此，我們將進行一些投資，以確保我們在銷售領域擁有足夠的實力。這些投資旨在進一步賦能銷售團隊，為銷售團隊提供補充，使我們的銷售團隊有機會持續贏得客戶。因為歸根究底，我認為，在邁向獲利的道路上，審慎投資與營收成長相結合才是真正可持續的途徑。

Our next question comes from the line of DJ Hynes from Canaccord.

我們的下一個問題來自 Canaccord 的 DJ Hynes。

Scott, maybe I could stay on that, Fred. I hear your comments in the prepared remarks that the bundle has swung kind of too far towards cost optimization. Is that a hint in any way that you guys are backing away from the Q3 '24 EBITDA breakeven target?

史考特，或許我可以繼續討論這個問題，弗雷德。我聽你在準備好的發言稿中提到，這個方案似乎太注重成本優化了。這是否暗示你們要放棄2024年第三季EBITDA損益平衡目標？

Yes. I'm 2 months into the job, I'm not backing away from anything nor am I leaping ahead. All I'm saying is I think there are areas that -- as I move from kind of 30,000 seats at the Board level down to 10 feet at the CEO level, I think some rebalancing needs to occur. I'll give you another example. Our team has worked incredibly hard as we move through this year to deliver on the products. I mentioned the pace of productivity out of our engineering team is better than it's ever been.

是的。我上任兩個月了，既沒有退縮，也沒有操之過急。我只是想說，隨著我從董事會層面（擁有三萬個席位）走到CEO層面（距離公司十英尺），我認為有些方面需要重新調整。我再舉個例子。今年以來，我們的團隊為了交付產品付出了巨大的努力。我之前提到過，我們工程團隊的生產力比以往任何時候都高。

The products that we're developing, the skills that we're developing for Cecilia are remarkable. And I'm not convinced that the rewards have kept up with that for the team. And so I think there's an investment in our people. I said it in my prepared remarks, I think the most important asset we have is our people. And so I think there's an investment that needs to be made there.

我們正在開發的產品，以及我們為塞西莉亞培養的技能都非常出色。但我並不認為團隊獲得的回報與這些付出相符。所以我認為我們需要對員工進行投資。我在事先準備好的演講稿中也提到過，我認為我們最重要的資產就是我們的員工。因此，我認為我們需要在這方面進行投資。

So I'm in no way today suggesting that it's a significant investment in terms of dollars, but it is significant in terms of what I believe it will result in. And that is an even more motivated employee population and even more motivated and enabled sales team. And I think that will help us get back to the growth company that we were and help enable, as I said, a more sustainable profitability as we move forward as a company.

所以我今天絕不是說這是一筆數額龐大的投資，但就其最終帶來的成果而言，它意義重大。我相信它能帶來更積極的員工團隊和更有動力、更有能力的銷售團隊。我認為這將幫助我們重回成長型公司的行列，並如我所說，幫助我們在未來的發展中實現更永續的獲利能力。

Yes. Understood. Michael, a follow-up for you. So you've increased revenue sequentially now for 3 quarters in a row. It sounds like you're pretty constructive on the trends that you're seeing through October. Is there anything you're seeing in the business today that would lead you to think that, that trend of sequential growth doesn't persist into Q4?

是的，明白了。邁克爾，我有個後續問題。你們已經連續三個季度實現了營收環比成長。聽起來你對十月之前的趨勢相當樂觀。那麼，你目前在業務方面觀察到的哪些情況會讓你覺得這種環比成長的趨勢無法延續到第四季呢？

Look, DJ, it's a really good question. I mean, we feel good about the recent trends in the business over the last few months, and in particular, with respect to eDiscovery and additional data on the platform and then into October. And so we feel good about all those trends. We are usage-based. And so cases will end and cases will get added back to the platform. So I'm cautiously optimistic about the trends in the business, and I'm really pleased in terms of where they've been going in the last few months.

DJ，你問的這個問題很好。我的意思是，我們對過去幾個月的業務發展趨勢感到樂觀，尤其是在電子取證和平台上新增資料方面，以及10月的情況。所以我們對所有這些趨勢都感到滿意。我們採用的是按使用量計費的模式。案件會結束，也會有新的案件重新加入平台。因此，我對業務發展趨勢持謹慎樂觀的態度，並且對過去幾個月的發展狀況感到非常滿意。

Okay. One last quick clarification for me. I believe I heard you say that, that large client review ended in Q2. Is that correct? So there was no bleed of revenue from that into...

好的。我還有一個問題要確認一下。我好像聽您說過，那個大型客戶審查在第二季結束了。是這樣嗎？所以沒有造成任何收入流失…

I don't actually know exactly offhand if it -- there may have been a little bit of a tail into Q3. I'm not sure off hand, but the $1 million plus was all in Q2, and there could have been a little bit of a tail, but if it was, it wasn't material.

我一時也說不準──或許第三季還有一點餘波。我不太確定，但那100萬美元以上的收入都在第二季度，可能還有一點餘波，但即便有，也微不足道。

(Operator Instructions) Our next question comes from the line of Koji Ikeda from Bank of America Securities.

（操作說明）我們的下一個問題來自美國銀行證券的池田浩二。

Michael, I just wanted to circle back into some of your prepared remarks about 2024, realizing you're not guiding on the revenue side, but you did make a comment on operating expenses. I think I heard you right where you said you're trying to hold operating expenses flat for next year? Does that mean like on a 4Q guidance run rate basis? Or just trying to understand exactly what you mean by that holding expenses flat?

邁克爾，我想再補充一下你之前關於2024年的演講稿。我知道你沒有給出營收的指引，但你確實提到了營運費用。我好像聽你說過，你打算明年將營運費用控制在正常水平？這是指按照第四季的預期運行率來計算嗎？還是我只是想更清楚地理解你說的「控制費用」具體指的是什麼？

I think, what I said was no significant increase from where we are now is what I said. And we're going to have more to come back to you with more color and detail in Q1 when we report Q4.

我認為，我之前說的沒錯，目前的情況並沒有顯著改善。我們會在第一季發布第四季報告時，提供更詳細的資訊和更豐富的細節。

Okay. Okay. Got it. And then just thinking about that and some of Scott's comments on potential revenue growth drivers from here, I guess you guys are doing a good job of trying to control what you can, which is investing in the growth levers that you are. And when we're looking at the model, is it safe to say or safe to assume that the primary function here to drive growth given the revenue recognition usage-based model of your revenue, its customers, right?

好的，好的，明白了。然後，考慮到這一點以及斯科特關於未來潛在收入成長驅動因素的一些評論，我認為你們在控制力方面做得很好，也就是投資你們正在使用的成長槓桿。當我們審視這個模型時，鑑於你們的收入確認模式是基於使用量，並且你們的客戶群也基於使用量，那麼是否可以說或假設，推動增長的主要功能是實現增長，對嗎？

It's trying to land as many customers as you can and customer growth is going to be the best indication of future growth for this business.

它正努力爭取盡可能多的客戶，而客戶成長將是衡量這家企業未來成長的最佳指標。

Yes. Look, it's Scott. And Michael will know the numbers better than I do. But clearly, our ability to continue to grow customers is a net positive from a revenue standpoint. But as I said to the earlier question, I don't think it can be only that, right? I think we have to continue to drive new customers, but then we also need to continue to build the relationships with existing customers to sell them more.

是的。你看，我是史考特。麥可肯定比我更了解這些數據。但很顯然，從收入角度來看，我們持續成長客戶的能力是淨收益。但就像我之前回答問題時說的那樣，我認為事情不能就止步於此，對吧？我認為我們必須持續拓展新客戶，同時也要持續加強與現有客戶的關係，以便向他們銷售更多產品。

If they're an eDiscovery customer, that's fantastic. But if they have a review coming up in front of them, we need to be selling them on our Review team. We have an outstanding Review team, and we need to make sure our customers -- our existing customers know about that Review team. Again, an eDiscovery flag planet in the ground is fantastic, but have we shown them Case Builder.

如果他們是電子取證客戶，那當然很棒。但如果他們即將面臨審查，我們就需要向他們推銷我們的審查團隊。我們擁有一支卓越的審查團隊，我們需要確保我們的客戶——包括現有客戶——了解這支團隊。再次強調，電子取證業務的成功固然重要，但我們是否向他們展示過案例建構器（Case Builder）？

And all of the skills that we have in Case Builders, the ability today on a subscription basis to have Case Builder and use the Cecilia skills to develop a Timeline to do witness management. Are they aware of that offering? With our corporate clients. We made an acquisition a couple of years ago of a hold product. And having lived in the corporate world within the last couple of years and been in a company where on occasion, you got those hold notices showing the GCs of those companies, that opportunity, our existing customers, that opportunity, I think, is a great way for us to establish a foothold from which we can grow.

我們在 Case Builders 中擁有的所有技能，以及目前以訂閱方式提供 Case Builder 和 Cecilia 技能來創建時間軸以進行證人管理的能力，他們是否了解這項服務？對於我們的企業客戶而言，幾年前我們收購了一款鎖定產品。過去幾年我一直在企業界工作，也曾在一家公司工作過，偶爾會收到那些顯示公司總法律顧問的鎖定通知。我認為，對於我們現有的客戶而言，這是一個絕佳的機會，可以幫助我們站穩腳跟，並以此為基礎實現成長。

And so my mantra with the sales team has been – it's not -- do we do transaction or subscription? It's not -- do we sell eDiscovery or Review? It -- we should do it all. And we should use the portfolio of products that we have and that we're developing to attract new customers without question, but we should certainly take advantage of the 1,449 customers that we have to sell them more. As I look at this company, I don't, in any way, see us having an issue of a lack of opportunity.

因此，我對銷售團隊的口號一直是：我們不應該糾結於「是做交易型還是訂閱型？」、「是賣電子取證服務還是電子審查服務？」、「我們應該全部都做。」我們應該毫無疑問地利用我們現有的和正在開發的產品組合來吸引新客戶，但我們也應該充分利用我們現有的1449位客戶，向他們銷售更多產品和服務。在我看來，這家公司完全不存在缺乏機會的問題。

To gain new customers to sell more into existing customers. I think the field is open. I think the products we have are there. I think we have a terrific sales team, and we're going to make investments to enable them more. And so it's both. It's -- yes, you should expect us to continue to grow customers, but you should also expect us as we move forward to talk about what we're doing to sell our existing customers more.

為了拓展新客戶，也為了向現有客戶銷售更多產品。我認為市場前景廣闊。我們的產品很有競爭力。我們擁有一支優秀的銷售團隊，我們將加大投入，進一步賦能他們。所以，兩者兼顧。是的，你們應該期待我們繼續拓展新客戶，但你們也應該期待我們在未來與大家分享我們為提升現有客戶的銷售業績所做的努力。

Got it. Really appreciate it.

收到了，非常感謝。

Our final question comes from the line of Brent Thill from Jefferies.

最後一個問題來自 Jefferies 的 Brent Thill。

This is Luv Sodha on for Brent Thill. Over the past few quarters, you've highlighted maybe a continued optimization in some of your larger customers as they're renegotiating some of their spent. Is it fair to assume that the comments you made in terms of eDiscovery usage improving, does that apply to those larger customers as well?

這裡是 Luv Sodha，代 Brent Thill 為您報道。過去幾個季度，您曾提到一些大客戶在重新協商部分支出時，可能正在進行持續的優化。您之前提到的電子取證使用情況的改善，是否也適用於這些大客戶呢？

Yes, the improvement we're seeing, again, this is my theme for the call, I guess, is across all of our customers. So we are seeing improvements with the existing customers. And again, some of what you're talking about with the existing customers, where we're negotiating, that's the exact opportunity I'm talking about where we can go to those customers and say, hey, it's more than eDiscovery.

是的，我們看到的改進，我想這也是我這次電話會議的主題，也是所有客戶的改進。我們看到現有客戶的體驗正在改善。而且，您剛才提到的與現有客戶談判的內容，正是我要說的機會，我們可以去告訴這些客戶，我們的服務遠不止電子取證。

Let me talk to you about the opportunity to buy Case Builder to buy Review to -- when it's available in the fourth quarter to buy Cecilia. And so it is absolutely the case that we are seeing some growth in our existing customers, particularly as we work through the wave of some of the larger cases that had come off earlier in the year. But I definitely see an opportunity in those customer conversations to really sell the breadth of the company and the breadth of the products and allow us to see the usage go up related to that.

讓我來談談購買 Case Builder、Review 以及 Cecilia 的機會——這些產品將在第四季度上市。我們現有客戶的業務確實有所成長，尤其是在我們處理完年初遺留的一些大型案件之後。但我認為，在與客戶的溝通中，我們有機會充分展現公司及其產品的廣度，進而提升客戶的使用量。

Got it. And just a quick follow-up. On -- thank you for the net new ads commentary. But I wanted to dig in, I guess, on an absolute basis, it was only 18 customers added versus, let's say, the 6 quarter average has been around $50 million. So, I guess, it is somewhat of a step down. So was there anything different in terms of churn? Or any additional color you can add there?

明白了。還有一個後續問題。感謝您對新增廣告的評論。我想深入探討一下，從絕對值來看，新增客戶只有 18 位，而過去六個季度的平均新增客戶數約為 5,000 萬美元。所以，這算是個下滑。那麼，在客戶流失率方面有什麼不同嗎？或者您還能補充一些其他資訊嗎？

Yes, I'm not consider -- I don't think I'd say 18 up as a step down. It's a smaller step up, but it's a step up. And it's kind of -- I don't have the numbers right in front of me, but I'm pretty confident in saying that it's been a step-up each quarter for the last 8 to 12 quarters. And that's the trend you want. Would I have liked 18 to been 81? Sure. Are we focused on continuing to drive more customers? Absolutely. But I don't want to apologize for another sequential improvement in our customer count because, again, that's 18 more customers that can buy the breadth of the products we have to offer.

是的，我不認為──我不認為增加18個客戶是倒退。這只是小幅增長，但確實是增長。而且──我手邊沒有具體數據，但我相當肯定地說，過去8到12個季度，每季都是成長。這正是我們想要看到的趨勢。我希望客戶數量從18個增加到81個嗎？當然。我們是否專注於持續吸引更多客戶？絕對是。但我不想為客戶數量的另一個增長而感到抱歉，因為，再說一遍，這意味著多了18位客戶，他們可以購買我們提供的各種產品。

There are no further questions at this time. Scott Hill, CEO. I'll turn the call back over to you.

目前沒有其他問題了。斯科特·希爾，首席執行官。我把電話轉回給你。

Thank you, Bhavesh. This has been a challenging year for our company. I want to thank our employees for their resilience and maintaining a remarkable focus on continuing to innovate and serve our customers. I also want to reiterate my commitment to working with all of you to make Disco a great place to work.

謝謝你，Bhavesh。對我們公司來說，今年是充滿挑戰的一年。我要感謝我們員工的韌性，感謝他們始終專注於創新和客戶服務。我也要重申，我將與大家攜手合作，努力把Disco打造成一個理想的工作場所。

And importantly, I want to thank our customers for their continued confidence and business. We're committed to continuing to help you be more efficient by delivering innovative technology solutions. Thank you for joining us today, and thank you for your interest in Disco.

更重要的是，我要感謝各位客戶一直以來對我們的信任與支持。我們將繼續致力於透過提供創新技術解決方案，幫助您提高效率。感謝您今天蒞臨現場，也感謝您對Disco的關注。

This concludes today's conference call. We thank you for participating, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您可以斷開連接了。