CS Disco Inc (LAW) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. And welcome to CS Disco's fourth quarter and fiscal year 2023 conference call. (Operator Instructions) I would now like to hand the conference over to your first speaker today, Head of Investor Relations, Aleksey Lakchakov. Please go ahead.

女士們、先生們，感謝你們的耐心等待。歡迎參加 CS Disco 2023 財年第四季及全年業績電話會議。（操作員指示）現在，我謹將會議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。請繼續。

Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Disco's fourth quarter and fiscal year 2023. With me on today's call are Scott Hill, Disco's Chief Executive Officer; and Michael Lafair, Disco's Chief Financial Officer. 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 or future capital expenditures, market opportunity, market position, product strategy and growth opportunities and developments in the legal technology industry. 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.csdisco.com.

下午好，感謝各位參加今天的電話會議，共同討論 Disco 第四季和 2023 財年的財務表現。今天和我一起參加電話會議的有 Disco 的執行長 Scott Hill 和 Disco 的財務長 Michael Lafair。今天的電話會議將包含 1995 年《私人證券訴訟改革法案》安全港條款所指的前瞻性陳述，包括但不限於有關我們財務展望和未來業績或未來資本支出、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。除了我們準備好的發言稿外，我們的獲利新聞稿、提交給美國證券交易委員會的文件以及今天電話會議的錄音都可以在我們的投資者關係網站 ir.csdisco.com 上找到。

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. Forward-looking statements represent our management's belief and assumptions only as of the date made.

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結果、績效或成就與前瞻性陳述中明示或暗示的內容有重大差異。前瞻性陳述僅代表我們管理階層截至陳述之日的信念和假設。

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 titled risk factors in the company's quarterly report on Form 10-Q for the quarter ended September 30, 2023, filed with the SEC on November 9, 2023, and the company's upcoming annual report on Form 10-K for the year ended December 31, 2023.

有關可能影響公司財務表現的因素的資訊會不時地包含在公司向美國證券交易委員會提交的文件中，包括公司於 2023 年 11 月 9 日向美國證券交易委員會提交的截至 2023 年 9 月 30 日的季度報告（表格 10-Q）中題為“風險因素”的部分，以及截至 2023 年的表 12 月的年度報告（12 月 12 月10-K）。

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. Reconciliation 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GAAP財務指標。這些非公認會計準則財務指標是依照公認會計準則編製的財務績效指標的補充，而不是替代或優於後者。我們的獲利報告中提供了 GAAP 和非 GAAP 財務指標之間的調整表，以及對使用非 GAAP 指標相對於其最接近的 GAAP 等效指標的局限性的討論。

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. I would like to start with a few comments on a strong end to 2023 before turning to our objectives for 2024. Fourth quarter, total revenue increased 10% versus last year to $35.7 million. Full year 2023, total revenue was $138.1 million, up 2% from the prior year.

謝謝你，阿列克謝。各位下午好，感謝各位的參與。在討論我們 2024 年的目標之前，我想先對 2023 年的良好收官做一些評論。第四季總營收比去年同期成長10%，達3,570萬美元。2023 年全年總收入為 1.381 億美元，比上年增長 2%。

Software revenues, which include revenues from eDiscovery and other software product offerings, grew 5% to $29.3 million in the fourth quarter. For the full year, software revenue grew 3% to $112.3 million. We had 1,441 customers as of December 31, 2023, which is 9% more than a year ago. Importantly, we had nearly 300 customers that generated more than $100,000 in revenues in 2023, up 9% compared to 2022.

第四季軟體收入（包括電子取證和其他軟體產品的收入）成長 5%，達到 2,930 萬美元。全年軟體營收成長 3%，達到 1.123 億美元。截至 2023 年 12 月 31 日，我們擁有 1,441 位客戶，比一年前成長了 9%。重要的是，我們有近 300 位客戶在 2023 年創造了超過 10 萬美元的收入，比 2022 年成長了 9%。

The number of customers who generated more than $1 million in revenue also expanded to 26 during 2023. And finally, we saw multiproduct attach rate improved to 15% at the end of 2023, up from 11% at the end of 2022. We have more customers spending more money and buying more of our products and we believe there is meaningful room for additional expansion in our existing customer base.

2023年，營收超過100萬美元的客戶數量也增加到26家。最後，我們看到多產品附加率在 2023 年底提高到 15%，高於 2022 年底的 11%。我們的客戶越來越多，消費金額也越來越高，購買的產品也越來越多，我們相信現有客戶群還有很大的成長空間。

Services revenues, which include revenues from Disco review and professional services, were $6.5 million in the fourth quarter. Full year services revenue was $25.8 million, flat from the prior year. Q4 2023 adjusted EBITDA was negative $1 million. Fiscal year 2023 adjusted EBITDA was negative $25.9 million. We ended the year with just under $160 million in cash on our balance sheet. 2023 was a year of change for Disco, but we're pleased with the return to growth we saw within our software business exiting the year.

第四季服務收入（包括 Disco 評論和專業服務收入）為 650 萬美元。全年服務收入為2580萬美元，與上年持平。2023年第四季調整後EBITDA為負100萬美元。2023 財政年度調整後 EBITDA 為負 2,590 萬美元。年底時，我們的資產負債表上現金餘額略低於1.6億美元。 2023年對Disco來說是充滿變革的一年，但我們對軟體業務在年底恢復成長感到滿意。

As we turn to 2024, we are focused on continuing to reaccelerate our revenue growth, investing to enhance our software product offerings, including advancing our innovative facility capabilities and strengthening our operating framework to improve our efficiency and profitability. And importantly, under the strong leadership of our Chief Human Resources Officer, Karen Herckis, we are building a stronger cultural foundation that we believe will be critical to sustaining our success.

展望 2024 年，我們將專注於繼續加速收入成長，投資以增強我們的軟體產品，包括推進我們的創新設施能力，並加強我們的營運框架，以提高我們的效率和獲利能力。更重要的是，在首席人力資源長凱倫·赫基斯的強大領導下，我們正在建立更強大的文化基礎，我們相信這對我們保持成功至關重要。

Let's start with continuing to reaccelerate revenue. We struggled with a number of distractions during 2023, but I'm proud of how the team executed and delivered a solid end of the year. And importantly, I'm very confident that we have the leadership and team in place focused and motivated to build on that momentum. Of particular note, we're fortunate that Andrea Popovecz agreed to step in as our Senior Vice President of Global Sales.

首先，我們要持續加速提升營收。2023年我們受到了許多幹擾，但我為團隊的執行力感到自豪，他們出色地完成了年底的工作。更重要的是，我非常有信心，我們已經擁有了優秀的領導團隊，他們專注且積極地致力於鞏固這一發展勢頭。尤其值得一提的是，我們很幸運地邀請到 Andrea Popovecz 擔任我們的全球銷售資深副總裁。

Andrea brings over 30 years of experience in the legal industry across all segments, having led sales teams for over 20 years at LexisNexis and over seven years at Epic She hit the ground at full sprint and has already improved and accelerated a number of our key initiatives. The great news is that we have always had a large addressable market, a growing customer base and industry-leading products.

Andrea 在法律產業的各個領域擁有超過 30 年的經驗，曾在 LexisNexis 領導銷售團隊超過 20 年，在 Epic 領導銷售團隊超過 7 年。她一上任就全力以赴，並且已經改進和加速了我們的一些關鍵舉措。好消息是，我們一直擁有龐大的潛在市場、不斷成長的客戶群和領先業界的產品。

I believe we are now developing and deploying the right sales approach to capture a greater portion of that significant opportunity. Entering 2024, we have taken a number of steps to improve our sales execution and drive our software dollar-based net retention back above 100% from 97% exiting 2023. We have bifurcated our customers into specific profiles and are developing sales motions that better reflect the nature of those distinct groups. We reorganized our sales team to reflect these groupings and their needs.

我相信我們目前正在開發和部署正確的銷售方法，以抓住這一重大機會的更大份額。進入 2024 年，我們採取了一系列措施來改善銷售執行情況，並將軟體美元淨留存率從 2023 年底的 97% 提高到 100% 以上。我們將客戶細分為不同的群體，並正在製定能夠更好地反映這些不同群體特徵的銷售策略。我們根據這些群體及其需求重組了銷售團隊。

We've enhanced our sales plan committed to a more constructive channel partnership and refined our pricing strategy. We've also combined our services and customer success function under Melanie Antoon's leadership as our Chief Customer Officer to reposition customers at the center of what we do. We believe these initiatives will improve our customer satisfaction and NPS scores and enable consistent revenue growth across both existing and new customers.

我們加強了銷售計劃，致力於建立更具建設性的通路合作夥伴關係，並完善了定價策略。在首席客戶長 Melanie Antoon 的領導下，我們將服務和客戶成功職能合併，以客戶重新成為我們工作的核心。我們相信這些措施將提高客戶滿意度和 NPS 分數，並使現有客戶和新客戶的收入持續成長。

In support of these sales and customer initiatives, we are refining our investments in lead generation, marketing and brand awareness. And we are already seeing signs of progress. Since the launch of the Lady J campaign last year, we have seen organic searches for Disco triple, and we have received over 10 million views and 32.8 million impressions across various platforms. A third-party survey of over 1,000 US-based legal professionals indicated that we are now the most cited eDiscovery technology platform among all of our competitors.

為了支持這些銷售和客戶計劃，我們正在優化在潛在客戶開發、行銷和品牌知名度方面的投資。我們已經看到一些進展的跡象。自去年 Lady J 活動推出以來，我們看到 Disco 的自然搜尋量增加了兩倍，並且在各種平台上獲得了超過 1000 萬次瀏覽量和 3280 萬次曝光量。第三方對 1,000 多名美國法律專業人士的調查顯示，我們現在是所有競爭對手中被引用次數最多的電子鑑識技術平台。

It's very common for us to hear new leads and customers mentioned the Lady J campaign as they first begin their Disco journey. We must now do a better job in 2024 of converting this increased awareness and the revenue growth. Our product and engineering teams are also doing a great job of supporting our sales efforts by continuing to enhance our industry leading eDiscovery offering at an unprecedented pace while also further developing our market-leading Cecilia AI capabilities and our innovative legal platforms, including case builder, hold and requests. With the Cecilia Q&A now generally available in the US, we were able to sign our first several customers. The customers were a combination of law firms and large corporate users and we are already hearing some great feedback.

我們經常聽到新客戶和潛在客戶在開始他們的 Disco 之旅時提到 Lady J 活動。我們必須在 2024 年更好地將這種不斷提高的意識和收入成長轉化為實際收益。我們的產品和工程團隊也在大力支持我們的銷售工作，他們以空前的速度不斷增強我們行業領先的電子取證產品，同時進一步開發我們市場領先的 Cecilia AI 功能和我們創新的法律平台，包括案件構建器、保留和請求。隨著 Cecilia Q&A 在美國全面上市，我們成功簽下了首批客戶。客戶包括律師事務所和大型企業用戶，我們已經收到了一些很好的回饋。

It was exciting to hear the founding partner of a leading Houston-based law firm explain to us the benefit they were receiving from Cecilia. He mentioned they are using Cecilia on a very large database with over 1.4 million documents in a very tight deadline. They demonstrated their end client how Cecilia could ultimately save them hundreds of working hours and help accelerate the speed and quality of the work at the same time.

聽到休士頓一家知名律師事務所的創始合夥人向我們解釋他們從 Cecilia 那裡獲得的好處，真是令人興奮。他提到，他們正在使用 Cecilia 處理一個擁有超過 140 萬份文件的大型資料庫，而且時間非常緊迫。他們向最終客戶演示了 Cecilia 如何最終為他們節省數百個工時，同時幫助提高工作速度和品質。

This partner also told us how he himself is able to use Cecilia to find answers to very specific questions with only a couple of clicks, while his team finds it far easier to get started and execute reviews with Cecilia. The early success we are seeing with Cecilia isn't expected to be a large contributor to our 2024 revenue, but it is certainly opening doors to new and existing customers and is laying the foundation for future growth by extending our lead and innovation in the legal industry.

這位合作夥伴還告訴我們，他自己只需點擊幾下滑鼠，就能使用 Cecilia 找到非常具體問題的答案，而他的團隊發現使用 Cecilia 開始和執行審查要容易得多。Cecilia 目前取得的早期成功預計不會對我們 2024 年的收入做出巨大貢獻，但它無疑為新老客戶打開了大門，並透過擴大我們在法律行業的領先地位和創新能力，為未來的成長奠定了基礎。

It also demonstrates why we believe it is imperative that we continue to invest to enhance our eDiscovery offering, including advancing our innovative superior capabilities. During 2023, our product and engineering teams work together to release major AI innovations, including Cecilia Q&A, which increases the efficacy and efficiency with which lawyers reviewed documents and Cecilia timelines and tagging, which enhance the way lawyers prepare cases.

這也說明了為什麼我們認為必須繼續投資以增強我們的電子取證服務，包括推進我們創新卓越的能力。2023 年，我們的產品和工程團隊共同努力，發布了多項重大 AI 創新，包括 Cecilia Q&A（可提高律師審查文件的效率和效力）和 Cecilia 時間軸和標籤（可增強律師準備案件的方式）。

Our product and engineering teams have also been hard at work on Cecilia auto review which is now in private testing and has the capability to significantly automate and improve the accuracy and quality of large tedious document reviews.

我們的產品和工程團隊也一直在努力開發 Cecilia 自動審核功能，目前正在進行內部測試，能夠顯著提高大型繁瑣文件審核的自動化程度和準確性及品質。

As we pivot to 2024, we expect the rate and pace of innovation to continue as we add additional skills to our Cecilia AI platform. We announced the launch of Cecilia Deposition summaries at legal week in January. This generative AI-driven solution enables legal professionals to automatically create deposition summaries, which have traditionally been a tedious and time-consuming tasks.

展望 2024 年，我們預計隨著我們為 Cecilia AI 平台增加更多技能，創新速度和步伐將繼續加快。我們在一月份的法律週上宣布推出 Cecilia 證詞摘要。這種由人工智慧驅動的生成式解決方案使法律專業人士能夠自動建立證詞摘要，而這歷來都是一項繁瑣且耗時的任務。

Our team is also working to integrate the primary law asset, which we licensed in late 2023 into Cecilia, which will marry facts with law on a single technology platform for the first time. We anticipate launching primary law capabilities later this year. And while we're excited about Cecilia, the key to our success in 2024 remains our core e-discovery software and services offerings.

我們的團隊也在努力將我們在 2023 年底獲得許可的主要法律資產整合到 Cecilia 中，這將首次在單一技術平台上將事實與法律結合起來。我們預計將於今年稍後推出主要法律功能。雖然我們對 Cecilia 感到興奮，但我們 2024 年成功的關鍵仍然是我們的核心電子發現軟體和服務產品。

During the fourth quarter, we continued to deliver key functionality that our customers need, including deeper integration capabilities between time lines and eDiscovery, new capability to track user activity and last access user information. Production sharing, which allows lawyers to securely and easily send legal protections to a third party and work product permissions, which allows users to keep work confidential from document viewer such as expert witnesses.

第四季度，我們繼續提供客戶所需的關鍵功能，包括時間軸和電子發現之間更深入的整合功能，以及追蹤用戶活動和最後存取用戶資訊的新功能。生產共享功能可讓律師安全便捷地將法律保護文件傳送給第三方，而工作成果權限功能可讓使用者對文件檢視者（例如專家證人）保密工作成果。

In January, our team delivered the ability to source on a custom field, which is one of the most asked for enhancements on our roadmap. Our product and engineering teams are extremely talented and dedicated and I'm confident that 2024 will be another banner year in product development that will delight our customers, enable revenue growth and strengthen the foundation of our future success.

1 月份，我們的團隊實現了在自訂欄位上尋找來源的功能，這是我們路線圖上用戶呼聲最高的增強功能之一。我們的產品和工程團隊才華橫溢、兢兢業業，我相信 2024 年將是產品開發另一個輝煌的年份，這將令我們的客戶滿意，實現收入增長，並鞏固我們未來成功的基礎。

We are investing in local and globalized talent to supplement capacity while we continue to build a comprehensive litigation platform, which we believe will truly transform the way legal work gets done. We believe we are positioned to return to meaningful growth with a much more precise focus on serving our customers. We will invest to solidify our technology footprint, enhance our core offerings and build our lead in product innovation.

我們正在投資本地和全球人才以補充產能，同時我們將繼續建立一個全面的訴訟平台，我們相信這將真正改變法律工作的完成方式。我們相信，透過更精準地專注於服務客戶，我們已做好準備，重回正軌，實現有意義的成長。我們將加強投資，鞏固我們的技術優勢，增強我們的核心產品，並在產品創新方面保持領先地位。

We intend to do all of this while also vigilantly focusing on the strength of our balance sheet and cash generation. In order to do that, we must strengthen our operating framework to improve our efficiency and profitability by developing the processes, system and infrastructure necessary to scale efficiently and profitably.

我們計劃在做好這一切的同時，密切注意資產負債表的穩健性和現金流的產生。為了實現這一目標，我們必須加強營運框架，透過開發必要的流程、系統和基礎設施來提高效率和獲利能力，從而實現高效盈利的規模化發展。

One important initiative that we will continue is expanding our presence in India to enable additional future efficiencies. In 2023, we grew our employee headcount in India from zero to over 100 employees. We anticipate approximately 20% of our workforce will be based in India by the end of this year. We are also working to enhance our CRM processes and systems and rebuild our customer success and sales ops function.

我們將繼續推進的一項重要舉措是擴大我們在印度的業務，以提高未來的效率。2023年，我們在印度的員工人數從零增加到超過100人。我們預計到今年年底，我們約有 20% 的員工將在印度工作。我們也在努力改善客戶關係管理流程和系統，並重建客戶成功和銷售營運職能。

We will enhance our security and controls capabilities and develop an improved quote-to-cash process as well as enhancing other key back office processes and systems. These are critical initiatives that will enable our future ability to scale.

我們將加強安全和控制能力，改善報價到收款流程，並加強其他關鍵的後台流程和系統。這些措施至關重要，將使我們能夠在未來具備規模化發展的能力。

Finally, while the Board continues to evaluate a strong set of candidates to be Disco's next leader. I remain fully engaged the CEO, and I'm very excited about 2024. As I enter my six months in the role, I want to reiterate some of the things I mentioned on the last earnings call over three months ago. I remain convinced in the amazing talent, the industry leading products, the sizable market opportunity and the strategic roadmap we have at Disco. I now believe we have also made significant and necessary improvements to our culture and our go-to-market approach.

最後，董事會仍在評估一批優秀的候選人，以確定迪斯可的下一任領導人。我將繼續全力以赴擔任執行長一職，我對 2024 年充滿期待。在我擔任這個職位六個月之際，我想重申我在三個多月前的上次財報電話會議上提到的一些事情。我仍然堅信 Disco 擁有傑出的人才、業界領先的產品、龐大的市場機會和策略路線圖。我現在認為，我們在企業文化和市場推廣方式方面也做了重大且必要的改進。

But something else became clear in the time that I've been in this role, we had stopped investing in our people. We cut key sales functions and field capacity to save money without having a cohesive go-to-market strategy. We reduced R&D capacity to the detriment of our product roadmap. We asked our G&A resources to work harder without addressing key system and process gaps.

但在我擔任這個職務的這段時間裡，另一件事變得很明顯：我們已經停止投資了員工。我們削減了關鍵的銷售職能和現場產能以節省資金，但卻沒有一個連貫的市場推廣策略。我們削減了研發能力，這對我們的產品路線圖造成了不利影響。我們要求行政管理部門的員工更努力工作，卻沒有解決關鍵的系統和流程缺陷。

Those actions pushed us closer to profitability, but not in a sustainable way. As I said in my remarks this afternoon, we are going to invest and correcting those missteps. We believe these investments, combined with reaccelerating revenue growth, will put us on a sustainable path to profitability during 2025. The opportunity is there. Now we have to execute.

這些舉措使我們離盈利更近了一步，但這並非可持續的方式。正如我今天下午講話所說，我們將加大投入，糾正這些失誤。我們相信，這些投資加上收入成長的重新加速，將使我們在 2025 年走上可持續獲利的道路。機會就在那裡。現在我們必須執行。

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

接下來，我將把麥克風交給麥可。

Thank you, Scott. In Q4 2023, total revenues were $35.7 million, up 10% year over year. Software revenues, which includes revenues from eDiscovery and other software product solutions, were $29.3 million, up 5% year over year. Services revenues, which include Disco managed review and professional services, were $6.5 million, up 37% year over year. Full year 2023 revenues were $138.1 million, up 2% year over year. Software revenues were $112.3 million, up 3% from prior year.

謝謝你，斯科特。2023 年第四季總營收為 3,570 萬美元，年增 10%。軟體收入（包括電子取證和其他軟體產品解決方案的收入）為 2,930 萬美元，年增 5%。服務收入（包括 Disco 管理的審查和專業服務）為 650 萬美元，年增 37%。2023 年全年營收為 1.381 億美元，年增 2%。軟體營收為 1.123 億美元，比上年增長 3%。

Services revenues were $25.8 million, flat versus last year. Growth in our professional services was offset by a year-over-year decline in revenues from our review product offering, which resulted in flat performance. Total dollar-based net retention as of 2023 year end was 92%. And as Scott mentioned, software dollar-based net retention was 97%.

服務收入為2580萬美元，與去年持平。專業服務業務的成長被評論產品收入年減所抵消，導致業績持平。截至 2023 年末，以美元計的淨留存率為 92%。正如 Scott 所提到的，軟體美元淨留存率為 97%。

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 Q4 was 76% and gross margin for fiscal year 2023 was 75%, in line with Q4 and fiscal year 2022.

在討論損益表的其餘部分時，請注意，除非另有說明，所有關於我們毛利率、營業費用和淨虧損的參考資料均以非公認會計準則為基礎。調整後 EBITDA 也是非公認會計準則財務指標。我們第四季的毛利率為 76%，2023 財年的毛利率為 75%，與 2022 年第四季和財年持平。

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.

正如我們之前提到的，我們的毛利率會根據客戶使用情況的性質而波動，例如，在我們平台上攝取和管理的資料量和資料類型。

Sales and marketing expense for Q4 was $13.0 million or 36% of revenue, compared to 52% of revenue in Q4 of the prior year. For fiscal year 2023, sales and marketing expense was $62.1 million or 45% of revenue compared to 51% of revenue for fiscal year 2022, a decrease of over $6.5 million year on year. The decrease was primarily driven by a decrease in sales and marketing personnel costs.

第四季的銷售和行銷費用為 1,300 萬美元，佔營收的 36%，而去年同期這一比例為 52%。2023 財年，銷售和行銷費用為 6,210 萬美元，佔收入的 45%，而 2022 財年佔收入的 51%，年比減少了 650 多萬美元。下降的主要原因是銷售和行銷人員成本的下降。

Research and development expense for Q4 was $8.7 million or 24% of revenue, compared to 41% of revenue in Q4 of the prior year. For fiscal year 2023, research and development expenses were $42.3 million or 31% of revenue compared to 38% of revenue in fiscal year 2022, a decrease of over $8.8 million year on year. This decrease was primarily driven by a reduction in research and development personnel and a decrease in per employee cost as a result of globalization efforts.

第四季的研發費用為 870 萬美元，佔營收的 24%，而去年同期這一比例為 41%。2023 財年，研發支出為 4,230 萬美元，佔營收的 31%，而 2022 財年這一比例為 38%，年比減少了 880 多萬美元。這一下降主要是由於研發人員減少以及全球化努力導致人均成本下降所致。

General and administrative expense in Q4 was $7.8 million or 22% of revenue compared to 20% of revenue in Q4 of the prior year. For fiscal year 2023, general and administrative expenses were $30.2 million or 22% of revenue, consistent with general and administrative expenses as a percent of revenue in fiscal year 2022. General and administrative expenses were just about flat year on year.

第四季一般及行政費用為 780 萬美元，佔營收的 22%，而上年同期佔營收的 20%。2023 財年，一般及行政費用為 3,020 萬美元，佔收入的 22%，與 2022 財年一般及行政費用佔收入的百分比一致。一般及行政費用與上年基本持平。

Operating loss in Q4 was $2.2 million, representing an operating margin of negative 6% compared to negative 37% in Q4 of the prior year. Operating loss for fiscal year 2023 was $30.5 million, representing a margin of negative 22% compared to negative 36% in 2022. Adjusted EBITDA was negative $1.0 million in Q4, representing an adjusted EBITDA margin of negative 3% compared to an adjusted EBITDA margin of negative 34% in Q4 of the prior year.

第四季營業虧損為 220 萬美元，營業利潤率為 -6%，而去年同期為 -37%。2023 財年的營業虧損為 3,050 萬美元，利潤率為 -22%，而 2022 年的利潤率為 -36%。第四季調整後 EBITDA 為負 100 萬美元，調整後 EBITDA 利潤率為負 3%，而上年同期調整後 EBITDA 利潤率為負 34%。

Adjusted EBITDA in fiscal year 2023 was negative $25.9 million, a margin of negative 19% compared to a margin of negative 33% in 2022. Net loss in Q4 was $0.3 million or negative 1% of revenue compared to a net loss of $10.8 million or negative 33% of revenue in Q4 of the prior year.

2023 財年調整後 EBITDA 為負 2,590 萬美元，利潤率為負 19%，而 2022 年的利潤率為負 33%。第四季淨虧損為 30 萬美元，佔營收的 -1%，而上年同期淨虧損為 1,080 萬美元，佔營收的 -33%。

Net loss in fiscal year 2023 was $22.8 million or negative 17% of revenue compared to net loss of $47.0 million or negative 35% of revenue in 2022. Net loss per share for fiscal year 2023 was $0.38 per share compared to $0.80 per share for fiscal year 2022.

2023 財年淨虧損 2,280 萬美元，佔營收的 17%，而 2022 財年淨虧損 4,700 萬美元，佔營收的 35%。2023 財年每股淨虧損為 0.38 美元，而 2022 財年每股淨虧損為 0.80 美元。

Turning to the balance sheet and cash flow statement. We ended Q4 with $159.6 million in cash and cash equivalents and no debt. Operating cash flow in fiscal year 2023 was negative $25.5 million compared to negative $46.0 million in fiscal year 2022.

接下來來看資產負債表和現金流量表。第四季末，我們持有現金及現金等價物1.596億美元，且無任何債務。2023 財年的經營現金流為負 2,550 萬美元，而 2022 財年為負 4,600 萬美元。

Now turning to the outlook. For Q1 2024, we are providing total revenue guidance in the range of $34.5 million to $36.5 million in software revenue guidance in the range of $29.5 million to $30.5 million. We expect adjusted EBITDA to be in the range of negative $8 million to negative $6 million.

現在來展望一下前景。對於 2024 年第一季度，我們給出的總收入預期在 3,450 萬美元至 3,650 萬美元之間，軟體收入預期在 2,950 萬美元至 3,050 萬美元之間。我們預計調整後 EBITDA 將在負 800 萬美元至負 600 萬美元之間。

For fiscal year 2024, we are providing total revenue guidance in the range of $143 million to $155 million in software revenue guidance in the range of $120 million to $127 million. We expect adjusted EBITDA to be in the range of negative $26 million to negative $19 million, reflecting the investments Scott previously discussed.

對於 2024 財年，我們給出的總收入預期在 1.43 億美元至 1.55 億美元之間，軟體收入預期在 1.2 億美元至 1.27 億美元之間。我們預計調整後的 EBITDA 將在 -2,600 萬美元至 -1,900 萬美元之間，反映了 Scott 之前討論過的投資。

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

現在我想把電話轉交給接線員，以便進行問答環節。操作員？

(Operator Instructions)

（操作說明）

Scott Berg, Needham & Company.

Scott Berg，Needham & Company。

Hi, this is Rob Morelli on for Scott Berg. Thanks for taking my question. As you guys touched on January, you announced the departure of Luke McNeal, CRO. Can you just touch on how if at all, this has impacted your 2024 outlook and your go-to-market motion for the year? Thanks.

大家好，我是羅伯·莫雷利，替斯科特·伯格為您報道。謝謝您回答我的問題。你們在談到一月份的時候，宣布了首席營收長盧克麥克尼爾的離職。能否簡要說明一下，這是否對您 2024 年的展望和當年的市場推廣策略產生了影響？謝謝。

Yeah, hey, Rob. It's Scott. Thanks for the question. We were disappointed to have Luke depart, but I have to tell you that Andrea top of his who stepped in his place got onboard remarkably fast. I placed a phone call to her literally a week before our kickoff a couple of weeks before legal week, and you wouldn't know that she had just stepped into the role. I think the fact that she has been in our industry for 30 years, 20 years at LexisNexis and seven at Epic really gave her a lot of forward momentum as she stepped into the role.

嗨，羅布。是斯科特。謝謝你的提問。盧克的離開讓我們很失望，但我必須告訴你，接替他的安德烈亞很快就適應了新環境。在正式啟動前一周，也就是法律程序開始前幾週，我給她打了個電話，你根本看不出她是剛接任這個職位的。我認為，她在我們這個行業工作了 30 年，其中 20 年在 LexisNexis，7 年在 Epic，這確實為她擔任這個職位提供了巨大的前進動力。

And frankly, she picked up some of the good work that Luke had started with the broader sales team and has really helped us refine and enhance it. And so if I really don't feel like -- not only do I feel like we haven't lost the step. I think we have a little bit more forward momentum as we move into the year.

坦白說，她繼承了盧克在更廣泛的銷售團隊中開展的一些良好工作，並真正幫助我們完善和提升了這些工作。所以如果我真的不覺得──不僅我覺得我們還沒落​​後。我認為隨著新學年的深入，我們向前邁進的勢頭會越來越強勁。

Make no mistake, a lot of the things that we've talked about in the call are things that we are just starting to deploy. So we had a good fourth quarter, a nice way to end the year. You will see that our guidance is that we think we'll have a similarly good start to the year. But those things are really driven by the initiatives that we're launching and deploying right now.

毫無疑問，我們在電話會議中討論的許多事情，我們才剛開始部署。所以我們第四季表現不錯，為這一年畫上了圓滿的句點。你會發現，我們的預測是，我們認為今年會有一個同樣好的開局。但這些事情其實是由我們目前正在啟動和部署的各項措施所驅動的。

But I have the utmost confidence in Andrea and her leadership team and our team out in the field and inside sales across the board to go and do the things that are necessary to deliver revenue in the range that we provided for the year.

但我對安德里亞和她的領導團隊，以及我們所有第一線和內部銷售團隊都充滿信心，相信他們能夠完成必要的工作，實現我們今年設定的收入目標。

Got it. That's helpful. And then regarding Cecilia, great to hear some of the positive feedback to date. Any update on the monetization strategy there. And when it comes to the guide is there any sort of uplift or incremental adds there baked in? Thanks.

知道了。那很有幫助。至於 Cecilia，很高興能聽到目前為止的一些正面回饋。關於該平台的獲利模式有什麼最新進展嗎？那麼，就指南而言，其中是否包含任何形式的提升或增量添加？謝謝。

Yeah, as I mentioned in my prepared remarks, that there's not a significant dependency on Cecilia revenue in 2024 per se. But as I noted, she is definitely opening doors to not only existing customers who are looking at ways to extend their partnership with us, but also customers that maybe we've had before and are now open to coming back new customers with whom we haven't spoken before.

是的，正如我在準備好的演講稿中提到的，2024 年 Cecilia 的收入本身並不會造成重大影響。但正如我所指出的，她無疑為現有客戶打開了大門，這些客戶正在尋求擴大與我們合作關係的方法，而且她也為以前有過合作現在願意再次合作的客戶以及我們以前從未接觸過的新客戶打開了大門。

And so the impact on 2024, I think is we're once again demonstrating what Disco started with, which is the leading innovator in this space. And so customers want to talk to us about what we're doing and why we're in the room, of course, we can talk to them about buying our eDiscovery platform in the next case, we can talk to them about deploying case builder across the case.

因此，我認為，到 2024 年，我們將再次展現 Disco 的初心，成為該領域的領先創新者。因此，客戶當然想和我們談談我們正在做的事情以及我們為什麼會出現在這裡，我們可以和他們談談在下一個案例中購買我們的電子取證平台，我們可以和他們談談在整個案例中部署案例建構器。

We can talk to them about our hold and our request offering. So that's really the impact that Cecilia is having. Now, as I said, we do have some customers that are using Cecilia right now on cases and who are paying us for that.

我們可以和他們談談我們的持有情況和我們的請求報價。這就是塞西莉亞所產生的實際影響。正如我剛才所說，我們目前確實有一些客戶正在使用 Cecilia 處理案件，並且為此向我們付費。

And so I'm excited that process has begun, but there are a number of different ways, Cecilia, think of her as attainable, but it's really the skills that matter you think about time lines, which are released and live and a part of our case builder Q&A, which is being used by paying customers today. But you've also got auto reviews or tagging coming down the line, which will, I think, greatly enhance our customer's doing review. You've got the deposition summaries that we have announced at legal, but that's not even fully launched to our customers yet.

所以我很高興這個過程已經開始了，但塞西莉亞，有很多不同的方法可以讓她成為可實現的人，但真正重要的是技能，你要考慮時間線，這些時間線已經發布並上線，是我們案例構建器問答的一部分，付費客戶現在正在使用它。但未來還將推出自動評論或標籤功能，我認為這將大大增強我們客戶的評論體驗。我們已經公佈了法律部門發布的證詞摘要，但這些摘要尚未完全推出給我們的客戶。

That should be launched in the near future. So a number of different skills that enhance existing products, enhanced existing workflows and I think provide a number of different opportunities for us to package bundle and price in a way that our customers will find really attractive. And so contribution this year is door opening. The contribution as we move into '25 and '26 is even more revenue growth opportunity because, frankly, we need that acceleration to continue to make the investments to innovate for our customers.

應該會在不久的將來推出。因此，許多不同的技能可以增強現有產品，增強現有工作流程，我認為這為我們提供了許多不同的機會，讓我們能夠以客戶認為真正有吸引力的方式進行打包、捆綁和定價。因此，今年的捐款將為他人打開一扇門。隨著我們邁入 2025 年和 2026 年，我們將迎來更大的收入成長機會，因為坦白說，我們需要這種加速發展才能繼續進行投資，為我們的客戶進行創新。

Got it. That's helpful. Congratulations on the quarter. Thanks.

知道了。那很有幫助。恭喜你本季取得佳績。謝謝。

Mark Schappel, Loop Capital.

Mark Schappel，Loop Capital。

Hi, this is Tim Grieves on for Mark. One for me, with respect to your overall demand environment, could you provide an update on whether you're seeing any changes with your customers like over the past 90 days in terms of buying patterns, sales cycles or any like, additional sign-offs on deals closed?

大家好，我是 Tim Grieves，代 Mark 為您報道。就您的整體需求環境而言，您能否提供過去 90 天內，您的客戶在購買模式、銷售週期或類似方面是否有任何變化，例如已完成交易的額外批准？

I wouldn't say that I've noticed any notable differences. As I mentioned, we had a good end of the year. We've had a good start to a really good January and moving into February. I think a good start to the quarter. So I know -- I don't know any particular change in terms of buying patterns. But again, what I am noticing and I just spent I guess it's now been two or three weeks ago, a little bit of time for the first time at it legal week that our booth was buzzing.

我倒沒覺得有什麼明顯的不同。正如我之前提到的，我們年底過得很好。一月開局良好，二月也進展順利。我認為本季開局不錯。所以我知道——我不知道購買模式方面有什麼具體變化。但是，我注意到，就在兩三週前，也就是法律週的第一周，我們的攤位非常熱鬧。

And again, I think it goes back to some of the innovative offerings that we're talking about and so what I'm seeing is an additional engagement or reengagement across existing and new customers that I'm excited about. Again, that aren't necessarily yielding right into January and February, but I think certainly will allow us to accelerate as we move through the year.

而且，我認為這又回到了我們正在討論的一些創新產品上，所以我看到的是現有客戶和新客戶的參與度或重新參與度的提高，這讓我感到興奮。再次強調，這些措施不一定會在一月和二月就奏效，但我認為肯定會讓我們在今年加速發展。

Okay. Thank you.

好的。謝謝。

David Hynes, Canaccord Genuity.

David Hynes，Canaccord Genuity。

Hey, guys. Scott, Michael, I need to ask about customer adds, right? I mean they're negative in Q4. We added 10 customers in the back half of the year. Just what's going on there and it seems to be a market slowdown from what we saw in the first half of the year. And I guess it begs the broader question of like what's the best leading indicator that we should be paying attention to for the health of the business?

嘿，夥計們。Scott，Michael，我需要問一下關於客戶添加的問題，對吧？我的意思是，他們第四季業績是負成長。今年下半年我們新增了10位客戶。那裡究竟發生了什麼事？看起來市場成長比上半年放緩。我想這引出了一個更廣泛的問題，那就是，對於企業的健康狀況而言，我們應該關注的最佳領先指標是什麼？

Yes, I think that's a really good question. And it's an important one because I think historically, we've talked about customers as if they're all equal, an equal opportunity, equal future ability to grow, equal interest in partnering. And that's not what I've seen in the six months that I've been here. I think there are certainly customers where we have deep long-standing relationships, but they're also customers who do a small case by a small deal and then aren't with us two months later.

是的，我覺得這確實是個好問題。而且這一點很重要，因為我認為從歷史上看，當我們談論客戶時，就好像他們都是平等的，擁有平等的機會、平等的未來發展能力以及平等的合作意願。而我在這裡的這六個月裡，看到的並不是這種情況。我認為我們確實與一些客戶建立了深厚的長期合作關係，但也有一些客戶只是小批量購買一些產品，兩個月後就不再與我們合作了。

And so I've really asked the team to focus a lot inside that 1,441 customers on who are the ones that we can grow with. Who are the ones that will partner with us? Who are the ones that look to us for the second case, in the fourth case in the sixth case? Because historically, what we know is if we can get a customer to a fifth or a sixth case, that's a sticky customer.

因此，我要求團隊專注於這 1441 位客戶中哪些人可以與我們共同成長。哪些人會與我們合作？在第二種情況、第四種情況、第六種情況下，誰會指望我們？因為從歷史經驗來看，如果我們能讓客戶購買第五或第六件商品，那他就是忠實客戶。

And so I've asked the team to look at the customers from a lens of who are the customers we can grow to six cases. It doesn't immediately go one to six, but who's the one we can sell a second two. And if that second one comes, can it lead to a third?

因此，我要求團隊從「哪些客戶可以發展到六例」的角度來審視客戶。它不會立即從一到六，但誰是我們可以賣出第二個兩分錢的人呢？如果第二個孩子出生了，會不會有第三個孩子呢？

And can that put us on a path to a six? So what that's going to mean is from quarter to quarter, I don't know that you'd look at the customer count is at particularly meaningful. But it does matter year over year because we do need to grow customers. And so I take solace in the fact that we're entering 2024 with 9% more customers than we had in the prior year. We're entering the year with 9% more customers spending more than $100,000.

那能讓我們走上通往六星的道路嗎？所以這意味著，從季度到季度，我認為查看客戶數量並不特別有意義。但這確實會影響到每年的客戶數量，因為我們需要不斷成長客戶群。因此，令我感到欣慰的是，進入 2024 年，我們的客戶數量比前一年增加了 9%。今年年初，消費超過 10 萬美元的客戶數量增加了 9%。

We're entering the year with 26 customers, which is up (technical difficulty) 10% or 12% from last year of the year, it's up three they're but they're spending $1 million or more a year. That's the growth driver for us.

今年我們擁有 26 位客戶，比去年同期成長了 10% 或 12%（技術難題），雖然增加了三位客戶，但他們每年的消費額都達到了 100 萬美元或更多。這就是我們成長的動力。

And the thing it does is it makes us a little bit less transaction because to the extent that we can embed ourselves in a customer and grow with that customer. It becomes far more annuity-like. It's still transaction in nature, but the relationship becomes more annuity because there's a point in time at which we get the call on the next case, it's not a hard sell to win that case.

這樣做的好處是，它能讓我們減少一些交易，因為我們可以盡可能融入客戶群，並與客戶一起成長。它變得更像年金了。雖然本質上仍然是交易，但這種關係更像是年金，因為總會有那麼一個時間點，我們會接到下一個案子的電話，而贏得那個案子並不難。

And so over the course of the year, growing our customer base absolutely important inside and out in any particular quarter, particularly and this is really important as we're for the first time ever as a company segmenting our customers and looking at big law, distinct from mid-market law, distinct from corporate law and developing sales motions around that, deploying our sales team across that aligning our marketing spend.

因此，在這一年中，無論在哪個季度，擴大客戶群都至關重要，這一點尤其重要，因為我們公司有史以來第一次對客戶進行細分，將大型律師事務所與中型律師事務所、公司律師事務所區分開來，並圍繞這一點制定銷售策略，將我們的銷售團隊部署到各個細分市場，並調整我們的營銷支出。

With that, there's going to be some dynamics underneath the covers within that customer count. And so what I would encourage you to do is watch the year-over-year growth for the full year, ask about the trends as we move through the year.

因此，客戶數量背後必然存在一些動態變化。因此，我建議你們觀察全年的年成長情況，並詢問在這一年中出現的各種趨勢。

But know, that what I think really important is the fact that we've segmented the customers we're developing the sales motion were aligning system that's every bit of spend around customer to serve that. I think those are the more meaningful metrics. And then at the end of the day, that the metric to watch is how is revenue trending.

但要知道，我認為真正重要的是，我們已經對客戶進行了細分，我們正在開發的銷售模式正在調整系統，使每一分錢都圍繞著客戶來服務。我認為這些才是更有意義的指標。歸根究底，需要關注的指標是收入趨勢如何。

Yeah, yeah. Okay. Fair enough. Michael, one for you. Do you have software revenue for '21 and '22? I mean, would be helpful to see how that's been trending as a percent of revenue, given it looks like it's going to be a new guidance metric?

是啊是啊。好的。很公平。邁克爾，給你一個。你們有2021年和2022年的軟體收入數據嗎？我的意思是，考慮到這似乎將成為一項新的績效指引指標，那麼了解該指標佔收入的百分比變化趨勢會很有幫助嗎？

Yeah, so we the K includes software revenue for '22 or for '23. And I'll just tell you what it is on the call now, it's about $112 million, and that is in the K and you also have in K the quarterly numbers for '23,

是的，所以我們說的K包括了2022年或2023年的軟體收入。我現在就在電話會議上告訴你們具體數字，大約是 1.12 億美元，這個數字在 K 表中，K 表中還有 2023 年的季度數據。

But nothing historically past beyond that?

但除此之外，就沒有其他歷史事件了嗎？

Nothing prior to '23.

2023年之前沒有任何記錄。

Okay, got it. Thank you, guys.

好的，明白了。謝謝大家。

(Operator Instructions)

（操作說明）

Koji Ikeda, Bank of America.

池田浩二，美國銀行。

Hey, Scott. Hey, Michael. Thanks for taking the questions. So just a couple from me here. I think I heard that the -- I guess it's safe to assume that the third quarter 2024 EBITDA profitability inflection target is now off the table, but I think you did mention something about 2025. So would that be EBITDA profitable for the full year 2025? Or is that a quarter in 2025 that would show that positive inflection?

嘿，斯科特。嘿，麥可。謝謝您回答問題。我這裡就簡單說兩句話。我好像聽說——我想可以肯定地說，2024 年第三季 EBITDA 獲利拐點目標現在已經不可能實現了，但我想你確實提到了 2025 年的情況。那麼，該公司到 2025 年全年 EBITDA 能否獲利？或者說，2025 年的某個季度才會出現正面的轉折點？

Yeah Koji, it's Scott. It's a good question and not an unexpected one. What I said precisely in my remarks is that it will put us on a sustainable and that's an important word to me a sustainable path to profitability as we move through 2025.

是的，Koji，我是Scott。這是一個很好的問題，而且並不出乎意料。我在演講中明確指出，這將使我們走上一條可持續的盈利之路，對我來說，「可持續」這個詞非常重要，它將幫助我們實現這一目標，直至 2025 年。

So I didn't pick a quarter. I didn't pick the year. What I'm telling you is that I believe a combination of the investments we're making this year, the acceleration in revenue we're seeing this year and then an additional acceleration as we move out into '25 and beyond are the things that put us on track for a sustainable path to profitability during 2025.

所以我沒選四分之一。年份不是我選的。我想告訴你們的是，我相信我們今年進行的投資、今年收入的加速增長，以及進入 2025 年及以後收入的進一步增長，這些因素結合起來，將使我們走上 2025 年實現可持續盈利的道路。

Again, I'm not going to pick the mark, but again, just in case I need to say it on the record. We have to get to profitability. We're committed to get there. I just as I said, did not want to cut off our ability to grow revenues and to balance the path to profitability and that's what we're doing. So as we move into 2025. I think the investments we're making this year combined with accelerating revenue growth, will put us on a sustainable path as we move through the year next year.

我不會再點名批評，但萬一我需要公開聲明，我還是再說一次。我們必須實現盈利。我們決心實現這個目標。正如我剛才所說，我不想削弱我們增加收入和平衡獲利能力的能力，而這正是我們正在做的。所以，當我們邁入2025年。我認為，我們今年進行的投資，加上收入的加速成長，將使我們在明年走上永續發展的道路。

Got it. No, that is super helpful. And looking at the guidance, it assumes services revenue, which is Disco review, is roughly flat for 2024. So I guess maybe walk us through why it would be flat?

知道了。不，這真的很有幫助。從該指引來看，它假設服務收入（即 Disco 的業績評估）在 2024 年將大致持平。所以，您能不能跟我們解釋為什麼這裡會是平坦的？

And is this services revenue going to be a drag on the business going forward? And then the second part of that question is how is the review price? Because I was looking through prior transcripts and it sounded like it was it's priced on how many documents are interested in the platform. So just wondering why it was being put into a different category going forward.

那麼，這項服務收入是否會對公司未來的業務發展造成拖累？那麼問題的第二部分是：評測價格如何？因為我查看了之前的成績單，感覺它的定價是根據平台對多少文檔感興趣來定的。所以我只是想知道為什麼它以後要被歸類在不同的類別。

Yeah. So it's a good question. So I think the way to think about it is within services, you have what I'll call kind of the get you up and running in our eDiscovery platform services. And then you have our review services, which leverage our technology. The attach rate of our gets you up and running services. Professional services is what we call things like ingest and forensic.

是的。所以，這確實是個好問題。所以我認為思考這個問題的方式是，在服務方面，我們有我稱之為「幫助您快速上手使用我們的電子取證平台服務」的功能。此外，我們也提供利用我們技術的評審服務。我們的附加率可確保您的服務快速啟動並運作。專業服務是指我們對諸如資料收集和取證之類的服務所扮演的角色。

Those things tend to have a pretty consistent attach rate on our software revenue and so I say that and you could barely imply that what that means is underneath the covers revenue is growing in services and down a little bit in review. And that's an accurate directional conclusion for you to reach.

這些項目往往對我們的軟體收入有相當穩定的附加率，所以我這麼說，你幾乎無法暗示這意味著，實際上服務收入正在成長，而審核收入略有下降。這就是你應該得出的準確方向性結論。

The important thing, though, is it's not because the review is going to be a I think you used the word a drag on the business overall, but review has tended historically to be more episodic and it tended to correlate much more significantly with larger deals while our services correlate with our software revenue, it that matter. Small deal, big deal, the attach rate is more consistent.

但重要的是，這並不是因為審查會像你剛才說的那樣拖累整個業務，而是因為審查歷來都比較零散，而且往往與更大的交易關聯性更強，而我們的服務則與我們的軟體收入相關，如果這很重要的話。無論大小事，附加率都更加穩定。

One of the reasons we broke out the two numbers is we wanted to give our investors a lot more clarity around the underlying strength of the thing that is key to our business, which is the software, but we will absolutely continue to offer our review services to clients who want that, again tends to be on the larger deal. I think a really important point, though, a lot of the costs associated with our review business are variable.

我們之所以將這兩個數字分開，其中一個原因是，我們希望讓投資者更清楚地了解我們業務的關鍵所在——軟體——的內在實力，但我們絕對會繼續為有需要的客戶提供審查服務，而這種服務往往涉及較大的交易。不過，我認為非常重要的一點是，我們評論業務的許多成本都是可變的。

There's very little fixed cost to our business from that. And so we love the big reviews when they come. We fundamentally believe that we can do them more efficiently, leveraging our software we think it's an important offering into a very large addressable market. But again, it's right now the attach rate relates more to the larger deals as we move up the stack as we develop our sales motion around large laws or big law, we develop our sales motion around corporate, I believe our ability to win those larger deals will improve and as it does.

這對我們的業務來說幾乎沒有任何固定成本。所以，我們很喜歡那些好評。我們從根本上相信，我們可以更有效率地完成這些工作，利用我們的軟體，我們認為這是一個面向非常龐大潛在市場的重要產品。但話說回來，目前附加率更多地與較大的交易有關，隨著我們圍繞大型律師事務所或大型法律機構制定銷售策略，隨著我們圍繞企業製定銷售策略，我相信我們贏得這些較大交易的能力將會提高。

I think the review attach rate will start to look a little more consistent like our professional services. But as of now, we effectively didn't want to lean into the year on whether that would or wouldn't happen quickly. But again, a key point for you to understand not a lot of fixing and I mean, like $1 million to $2 million of fixed fees around that business. So not a lot of fixed cost to continue to provide that service where our customers want it.

我認為評論附加率會開始像我們的專業服務一樣變得更加穩定。但就目前而言，我們實際上並不想在今年內就此事是否會迅速發生做出判斷。但再次強調，你需要明白的關鍵一點是，並沒有太多的補救措施，我的意思是，圍繞這項業務的固定費用大約有 100 萬到 200 萬美元。因此，我們無需投入太多固定成本就能繼續在客戶需要的地方提供這項服務。

Thank you, Scott. Thank you for taking the questions.

謝謝你，斯科特。感謝您回答這些問題。

Brent Thill, Jefferies.

布倫特‧蒂爾，傑富瑞集團。

Thank you, Scott and Michael, for taking my questions. This is Luv Sodha on for Brent Thill. I wanted to ask one. So obviously, dollar retention has declined quite a bit to 92% versus 106% last year. I guess, what are the key vectors to drive that back to above 100%? And could you maybe break that down between, say the volume of cases versus driving up multiproduct adoption?

謝謝Scott和Michael回答我的問題。這裡是 Luv Sodha 為 Brent Thill 報告。我想問一個問題。顯然，美元留存率已從去年的 106% 大幅下降至 92%。我想，要讓這個比例恢復到 100% 以上，關鍵因素是什麼？您能否具體分析一下，比如說，案例數量與推動多產品採用率之間的關係？

Yeah, look, I think for me, the fact that we're coming off a 97% software year is the lowest hanging fruit we've done historically our DNR has been 115%, 120% in the software business in order to hit the guide, we've got to push that back to call it 103% to 105% this year, which is at the goal. The goal is to get back where we've been historically where we know we can be.

是的，你看，我認為對我來說，我們上一年軟體業務佔比達到 97%，這是我們歷史上最容易實現的成果。我們軟體業務的 DNR 曾經達到 115% 到 120%，為了達到指導目標，我們今年必須將這個數字推遲到 103% 到 105%，這已經達到了目標。我們的目標是回到我們歷史上曾經達到的高度，回到我們知道我們能夠達到的高度。

So it just got to be a modest push. And the way that's going to happen, it's a far greater focus on our existing customer base. And that's why I say the inside that 1,441, it's not one large, everybody's the same kind of customer. There are a lot of big law customers in there and their corporates in there. There are mid-market firms in there and I think our ability to go and find the right motion in those segments is critically important.

所以只需要輕輕推一下就行了。而實現這目標的方式，就是更重視我們現有的客戶群。所以我說，這 1,441 人裡，並不是一個大家庭，每個人都是同一類型的顧客。那裡有很多大型律師事務所的客戶以及他們的企業客戶。其中也有一些中型企業，我認為我們能否找到這些細分市場的正確發展方向至關重要。

And another I think really important thing is we went from having a really strong customer success function a couple of years ago to having no customer success function. And Melanie Antoon and on her team Justin, the two of them are working well together, have already reestablish that team. And so as I talk about the alignment of go to market in the field in marketing, sales ops-wise, a big part and an important part of that team is the customer success function, the client experience.

還有一點我認為非常重要，那就是幾年前我們還擁有非常強大的客戶成功職能，但現在卻完全沒有了客戶成功職能。梅蘭妮·安東和她的團隊成員賈斯汀合作得很好，他們已經重新組建了這支團隊。因此，當我談到行銷和銷售營運領域中市場推廣策略的協調一致時，團隊中很大一部分、非常重要的部分是客戶成功職能，也就是客戶體驗。

And so we've got to get back to understanding who our customers are what their needs are and looking, as you said, for the opportunity -- what's the next product they could buy from us what the next case where we should have the opportunities? Can they leverage? The Cecilia skills that are in market, do they need case builder to sit across all of their cases or one case in particular? The client success rep that we have talking to those customers every week, I think will be critical to that success.

因此，我們必須重新了解我們的客戶是誰，他們的需求是什麼，並像你所說的那樣，尋找機會——他們接下來可能會從我們這裡購買什麼產品，我們應該在哪些情況下獲得機會？他們能否利用這一點？市面上現有的 Cecilia 技能，他們需要案例建構器來處理所有案例，還是只需要處理某個特定案例？我認為，我們每週與客戶溝通的客戶成功代表對客戶的成​​功至關重要。

And so for me, the fact that we moved from115 to 120 down to 97 is we frankly, took our eye off the ball. And the ability to push it back above 100 and back towards historical levels is basic blocking and tackling. And I feel like we've taken the right steps again, I caution that we've just rebuilt that function over the last couple of months, and we're aligning now around our segmentation. But I fundamentally believe as we move through the year that alignment and that function in particular, are going to be critical to our ability to really rebuild or refresh that DNR number.

所以對我來說，我們從 115 到 120 降到 97，坦白說，就是我們疏忽大意了。而要讓比數回到 100 以上，回到歷史水平，就是基本的阻擋和擒抱。我覺得我們又一次採取了正確的措施，但我必須提醒大家，我們在過去幾個月才重建了這項功能，現在我們正在圍繞細分市場進行調整。但我堅信，隨著時間的推移，協調一致，特別是這種協調機制，對於我們真正重建或恢復 DNR 數量至關重要。

Got it. Appreciate that. Just a quick follow-up on the investments that you're planning to make Scott, I guess, how which parts of the business are getting this investment? Because obviously you're getting some efficiency from the additional investments in India. So where are these investments going? And how will you track the efficiency of these investments?

知道了。謝謝。Scott，關於你計劃進行的投資，我想快速跟進一下，這些投資將用於公司哪些部門？很顯然，在印度的額外投資會提高效率。那麼這些投資都流向了哪裡呢？您將如何追蹤這些投資的效率？

Yeah, so it's really -- it's multifaceted, as I said, in my remarks. The first thing -- the first investment we made was in our people. Last year was a difficult year for Disco in any number of ways, but it was a year in which once again, most of our people were simply asked to work harder with little to no reward.

是的，正如我剛才所說，這個問題確實涉及多個方面。首先，我們做的第一項投資就是投資我們的員工。去年對 Disco 來說是艱難的一年，原因有很多，但最令人擔憂的是，我們的大多數員工再次被要求更加努力工作，卻幾乎沒有任何回報。

And so as we moved into this year for the first time in two years, we had a consistent salary increase program. It doesn't really impact our EBITDA numbers, but we also had an equity program that gave everyone in our company equity, which I think is the greatest thing in the world to align our employees' interests around the -- what's best for the company. So that's the first and key thing for me is investing in our people. The second thing is, as I mentioned, we're rebuilding our client success team.

因此，兩年來我們首次在今年實施了持續的薪資成長計畫。這其實不會影響我們的 EBITDA 數據，但我們也有一項股權計劃，讓公司裡的每個人都能獲得股權，我認為這是世界上最棒的事情，它能讓員工的利益與公司的最佳利益保持一致。所以對我來說，首要也是最關鍵的一點就是投資我們的員工。第二件事，正如我所提到的，我們正在重建客戶成功團隊。

We're rebuilding literally from zero our sales ops team. Were adding about 20% capacity in the field going from, I think, around 30 reps to just under 40, which will allow us to cover more customers as we segment, particularly around corporate and big law. We're making investments in R&D because the flat reality is that most of what R&D is doing today is what will allow us to grow tomorrow. It's not about 2024. It's about deposition, somebody that's about the enhancement in our eDiscovery platform.

我們正在從零開始重建銷售營運團隊。我們將增加約 20% 的現場銷售能力，從大約 30 名銷售代表增加到略低於 40 名，這將使我們能夠在細分市場時覆蓋更多客戶，尤其是在企業和大型律師事務所方面。我們正在加大研發投入，因為殘酷的現實是，研發今天所做的大部分工作，都將使我們能夠在未來發展壯大。這與2024年無關。這是關於取證的，是關於我們電子取證平台改進的。

It's about the enhancements in case builder and in a world where you cut that because it doesn't line up with the current your revenue, you're effectively cutting your nose off to spite your face. And so it's investments in R&D that are that are in the future. And then, Michael, I know this is near and dear to his heart. As you try and scale a business, you can't depends simply on people working harder.

關鍵在於案例建構器的增強功能，在這個世界上，如果你因為這些功能與你目前的收入不符而削減它們，那實際上是因小失大。因此，未來的發展方向是研發投資。而且，邁克爾，我知道這件事對他來說意義非凡。當你試圖擴大業務規模時，你不能只依靠員工來更加努力工作。

You have to have systems, you have to have processes you have to have control, you have to have security and we must make the investments that are necessary to do that. The good news is the level of spend increased this year versus last year, Is it something you need to go model in as we move forward, I think what we're doing is recovering from a little bit of an overcorrection last year getting back to balance this year. And then we'll be able to support double digit revenue growth with low single digit expense growth and put ourselves on that sustainable path to profitability by doing that.

你必須要有製度，你必須要有流程，你必須要有控制，你必須要有安全保障，而我們必須為此進行必要的投資。好消息是，今年的支出水準比去年有所增長。這是否需要我們將其納入模型以推進未來發展？我認為我們正在從去年的過度調整中恢復過來，力求在今年恢復平衡。這樣一來，我們就能以較低的個位數支出成長實現兩位數的收入成長，從而走上可持續獲利的道路。

So it really is investments across the board. But all of those are in line with what I said in the script, which is finding our way towards sustainable double-digit revenue growth, modest forward-looking investment and an ability to get our business to profitable and positive cash flow. And by the way, the last thing I'll say on that, the way I look at it is if you take our guidance roughly speaking, that's about 15% of the cash that we had on the balance sheet at the end of the year, which if we left it sitting in the bank, would earn about 4%. I think the return on the investment we're making will be significantly greater than that.

所以這確實是全方位的投資。但所有這些都與我在劇本中所說的一致，那就是找到實現可持續的兩位數收入增長、適度的前瞻性投資以及使我們的業務實現盈利和正現金流的方法。順便說一句，關於這一點，我最後要說的是，如果你大致按照我們的指導來看，這大約是我們年底資產負債表上現金的 15%，如果我們把這筆錢放在銀行里，大約能賺 4%。我認為我們這項投資的回報將遠高於此。

Got it. Thank you so much for the color.

知道了。非常感謝您提供的顏色。

There are no further questions at this time. I will now turn it back over to CEO, Scott Hill for closing remarks.

目前沒有其他問題了。現在我將把發言權交還給執行長史考特·希爾，請他致閉幕詞。

Thank you, Brianna. We appreciate everyone joining us today. 2023, as I just said, was a challenging year for Disco. I want to thank our employees for their resilience and our customers for their forbearance. We're excited about the opportunities we see in 2024.

謝謝你，布里安娜。感謝各位今天蒞臨。正如我剛才所說，2023年對迪斯可來說是充滿挑戰的一年。我要感謝我們員工的堅韌不拔，也要感謝我們顧客的寬容。我們對2024年看到的機會感到興奮。

There will be bumps on the road, but our team is aligned and focused. We're committed to returning to consistent double digit growth, committed to disciplined capital and expense management, leading to sustainable profitability. We're committed to our customers and to each other, and I have to tell you, I'm excited and proud to be a part of it as we begin the next chapter for Disco. And we look forward to updating you on the progress as we move into our next quarters, and I wish you all a nice evening.

前進的道路上難免會有坎坷，但我們的團隊目標一致，目標明確。我們致力於恢復兩位數的持續成長，致力於嚴格的資本和費用管理，從而實現可持續盈利。我們對客戶和彼此都充滿責任感，我必須告訴你們，能夠參與其中，開啟 Disco 的下一個篇章，我感到無比興奮和自豪。我們期待在接下來的幾季向大家報告進展情況，祝大家晚安。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線了。