CS Disco Inc (LAW) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to CS Disco's first quarter of fiscal year 2024 conference call. (Operator Instructions)

女士們、先生們，感謝各位的耐心等待，歡迎參加 CS Disco 2024 財年第一季電話會議。（操作說明）

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

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 first quarter of fiscal year 2024. With me on today's call are Scott Hill, DISCO's incoming Chair of the Board of Directors; Eric Friedrichsen, 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，共同討論 DISCO 2024 財年第一季的財務表現。今天和我一起參加電話會議的有：DISCO 即將上任的董事會主席 Scott Hill；DISCO 的首席執行官 Eric Friedrichsen；以及 DISCO 的首席財務官 Michael Lafair。

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, the impact of changes to our executive leadership, our future capital expenditures, market opportunity, market position, product strategy, and growth opportunities, the benefits of our product offerings and developments in the legal technology industry, including those related to the role of artificial intelligence. 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.

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、高管領導層變動的影響、我們未來的資本支出、市場機會、市場地位、產品戰略和增長機會、我們產品帶來的益處以及法律技術行業的發展（包括與人工智能的發展）的陳述作用。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.

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。

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 titled Risk Factors in the company's annual report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 22, 2024, and the company's upcoming quarterly report on Form 10-Q for the quarter ended March 31, 2024.

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。有關可能影響公司財務業績的因素的信息，會不時地在公司提交給美國證券交易委員會的文件中披露，包括公司截至 2023 年 12 月 31 日止年度的 10-K 表格年度報告（已於 2024 年 2 月 22 日提交給美國證券交易委員會）中題為“風險因素”的部分，以及截至 203 日的部分，2012 年 2012 年 203 月10-Q 表格季報。

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 equivalent 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'm very excited that we are joined today by DISCO's new CEO, Eric Friedrichsen. I noted on my very first call nearly eight months ago that I was committed to be DISCO's CEO until we found an outstanding long-term answer. Eric is that person.

謝謝你，阿列克謝。各位下午好，感謝各位的參與。我非常高興今天DISCO的新任執行長埃里克·弗里德里希森也加入了我們。大約八個月前，我在第一次通話中就明確表示，在找到一個出色的長期解決方案之前，我將一直擔任 DISCO 的執行長。埃里克就是那樣的人。

The Board conducted a global search and interviewed a diverse range of candidates to find a CEO to take DISCO to the next level. We took our time to find a person who we believe can enable DISCO's long-term success.

董事會開展了全球範圍的搜索，並面試了各種類型的候選人，以尋找一位能夠帶領 DISCO 邁向新高度的執行長。我們花了很多時間尋找我們認為能夠確保 DISCO 長期成功的人選。

Eric stood out above everyone else. His experience scaling global software companies, leading complex sales function, developing best-in-class products, and elevating the customer's voice, combined with a deep commitment to building and leading a collaborative and healthy culture, made it clear that he is the right person for the job.

埃里克比其他人都更出色。他擁有豐富的經驗，包括拓展全球軟體公司規模、領導複雜的銷售職能、開發一流產品以及提升客戶意見，再加上他對建立和領導協作健康文化的堅定承諾，這些都表明他是這份工作的合適人選。

Eric is uniquely positioned to lead DISCO into its next stage, which we believe will be characterized by a strong company culture, a return to consistent growth, and improved profitability and shareholder returns. I'm excited at the prospect of working closely with Eric as the Chair of DISCO's Board of Directors to help support him and the DISCO team who have come to mean so much to me.

Eric 擁有獨特的優勢，能夠帶領 DISCO 進入下一個階段，我們相信，這一階段的特點是強大的公司文化、恢復持續增長以及盈利能力和股東回報的提高。我很高興有機會與擔任 DISCO 董事會主席的 Eric 密切合作，幫助支持他和 DISCO 團隊，他們對我來說意義非凡。

Before we discuss our first-quarter performance, I want to give Eric an opportunity to introduce himself. Eric?

在討論我們第一季的業績之前，我想給艾瑞克一個自我介紹的機會。艾瑞克？

Thank you, Scott, and hello, everyone. I'm very happy to be here. I just want to start by taking a moment to thank you, Scott. Your leadership over the past eight months has been both stabilizing and inspirational. I am very appreciative. In fact, we're all very appreciative of everything that you've done to help lead the team through this difficult period. So thank you, Scott.

謝謝你，斯科特，大家好。我很高興來到這裡。首先，我想花一點時間感謝你，史考特。在過去八個月裡，您的領導既起到了穩定作用，又鼓舞人心。我非常感激。事實上，我們都非常感謝您為帶領團隊度過這段艱難時期所做的一切。所以，謝謝你，斯科特。

For the rest of you, as a quick introduction, for the past four years, I served as the CEO of Emburse, the world's largest independent provider of travel and expense software. During my time at Emburse, we more than doubled the revenue to over $250 million while improving gross margins, expanding the employee population, and becoming a very healthy and profitable business.

對於其他各位，我先簡單介紹一下自己：在過去的四年裡，我擔任 Emburse 的首席執行官，Emburse 是全球最大的獨立差旅和費用管理軟體供應商。在 Emburse 工作期間，我們的收入翻了一番多，超過 2.5 億美元，同時提高了毛利率，擴大了員工規模，並成為一家非常健康且盈利的企業。

Prior to Emburse, I spent over 25 years leading large organizations in general management, sales, services, and technology, most notably at Adobe, SAP, and Concur. And now I am honored to become the CEO of DISCO.

在加入 Emburse 之前，我曾在大型組織擔任領導職務超過 25 年，負責綜合管理、銷售、服務和技術，其中最值得一提的是 Adob​​e、SAP 和 Concur。現在我很榮幸成為 DISCO 的執行長。

I have already met and spent time with our senior leadership as well as many key employees and a handful of loyal and valued customers. The first thing I'd like to say is that the DISCO team should be very proud of everything that they've accomplished. Growing a business to over $130 million in revenue in 2023 with strong gross margins, over 1,400 customers, and industry-leading products is not a simple task.

我已經與公司高層領導、許多關鍵員工以及一些忠誠且重要的客戶見面並進行了交流。首先我想說的是，DISCO 團隊應該為他們所取得的一切成就感到非常自豪。到 2023 年，將一家企業的收入發展到超過 1.3 億美元，毛利率強勁，擁有超過 1,400 名客戶和業界領先的產品，這並非易事。

But even more so at DISCO, we are at a precipice of a truly revolutionary change. Every industry is evolving due to the advent of generative AI. We all know that. But the legal industry is the one that stands to benefit the most from this technological advancement. Whether it's the process of document review, legal research, brief writing or even legal advice, every area of the legal workflow will be impacted by AI.

但對於 DISCO 而言，我們更正處於一場真正革命性變革的邊緣。由於生成式人工智慧的出現，各行各業都在不斷發展。我們都知道這一點。但法律產業將從這項技術進步中受益最多。無論是文件審查、法律研究、簡報撰寫，甚至是法律諮詢，法律工作流程的每個環節都將受到人工智慧的影響。

DISCO stands at the vanguard of legal technology because of the vision of our employees and our leaders to invest and develop the technologies to take advantage of this exact moment. The foundation of DISCO is strong and with focus in collaboration, we will achieve remarkable things.

DISCO之所以能站在法律科技的前沿，是因為我們的員工和領導者俱有遠見卓識，投資並開發了能夠掌握當下機會的技術。DISCO 的基礎很牢固，只要我們注重合作，就一定能取得非凡的成就。

So as you know, I am just getting started, but I look forward to meeting all of you and our investor base and providing more updates on our strategy and our accomplishments in future earnings calls. Thank you, everyone. And now I'll turn it back over to Scott.

正如你們所知，我才剛起步，但我期待著與各位以及我們的投資者見面，並在未來的財報電話會議上提供更多關於我們戰略和成就的最新信息。謝謝大家。現在我把麥克風交還給史考特。

Thank you, Eric, and welcome aboard. Now let's dive into our solid performance during the first quarter of 2024.

謝謝你，艾瑞克，歡迎加入。現在讓我們深入了解我們在 2024 年第一季的出色表現。

Total revenue for the first quarter of 2024 was $35.6 million, up 7% versus the same quarter last year. Software revenue in Q1 grew 9% over the prior year to $29.9 million. Notably, software revenue and revenue growth each accelerated sequentially for the third consecutive quarter.

2024 年第一季總營收為 3,560 萬美元，比去年同期成長 7%。第一季軟體營收年增 9%，達到 2,990 萬美元。值得注意的是，軟體營收和營收成長均連續第三個季度環比加速。

Services revenue was $5.7 million in the first quarter. And adjusted EBITDA was negative $5.2 million, an improvement of $7.8 million year over year. We ended the first quarter with around $149 million of cash, no debt, and 1,442 customers, up 4% from this time a year ago.

第一季服務收入為570萬美元。調整後的 EBITDA 為負 520 萬美元，較上年同期改善 780 萬美元。第一季末，我們擁有約 1.49 億美元的現金，沒有債務，客戶數量為 1,442 人，比去年同期成長了 4%。

As we've mentioned on prior calls, we see opportunity to grow within our existing customer base while also continuing to add new high-value customers. Of note, we're also evaluating the cost to acquire and retain some of our smaller customers.

正如我們在先前的電話會議中所提到的，我們看到了在現有客戶群中發展壯大的機會，同時也不斷增加新的高價值客戶。值得注意的是，我們也在評估取得和留住一些小型客戶的成本。

I am proud of the way our customer-facing teams executed over the last two quarters despite our internal challenges and even as we began the early stages of rebuilding and reorganizing many aspects of our go-to-market approach. Over the past few months, we have developed a much deeper understanding of our customers.

在過去的兩個季度裡，儘管我們面臨內部挑戰，甚至在我們開始重建和重組市場推廣策略的許多方面時，我們的客戶服務團隊仍然表現出色，我為此感到自豪。在過去的幾個月裡，我們對客戶有了更深入的了解。

That understanding has led to improved customer segmentation, a reassessment of our marketing and SDR investments, and a realization that we need to replenish and refresh our sales and customer success functions. We're confident that these efforts will help us reaccelerate our growth in the medium term, but acknowledge that all of the change is having a slight dampening effect in the second quarter.

這種認知促使我們改善客戶細分，重新評估我們在行銷和銷售開發代表方面的投資，並意識到我們需要補充和更新我們的銷售和客戶成功職能。我們相信這些努力將在中期內幫助我們重新加速成長，但也承認所有這些變化在第二季產生了輕微的抑製作用。

Importantly, Eric is stepping into the CEO role at an auspicious time, given his demonstrated track record of leading high-performing, go-to-market functions. His assessment and enhancement of our go-to-market redesign, combined with our loyal customer base and innovative product offerings, give us confidence in our ability to reaccelerate revenue growth, which will then enable improved profitability and enhance shareholder returns.

重要的是，鑑於埃里克在領導高效的市場推廣職能方面所取得的成就，他選擇在這個吉時擔任首席執行官一職可謂恰逢其時。他對我們的市場進入策略重新設計的評估和改進，加上我們忠實的客戶群和創新的產品，使我們有信心重新加速收入成長，從而提高獲利能力並增加股東回報。

During the first quarter, our product and engineering teams further enhanced our innovative generative AI offerings, even as they continue to develop additional features for our core ediscovery platform. As you may have seen, we just announced a new Cecilia AI feature called doc summaries. This is a generative AI tool that provides detailed and high-level takeaways of individual documents at a user's request with the simple click of a single button on the DISCO dashboard.

在第一季度，我們的產品和工程團隊進一步增強了我們創新的生成式人工智慧產品，同時他們也持續為我們的核心電子發現平台開發其他功能。正如您可能已經看到的，我們剛剛發布了一項名為「文件摘要」的 Cecilia AI 新功能。這是一個生成式人工智慧工具，使用者只需在 DISCO 控制面板上按一下按鈕，即可根據其要求提供單一文件的詳細和進階摘要。

The reality in a review process is that many of the documents lawyers review might be dozens of pages long or in foreign or esoteric language. It slows down the review and can be overwhelming for the person going through the process. Doc summaries was designed to overcome all of those hurdles and provide an immediate, punchy summary of an individual document, enhancing the speed of a lawyer's workflow and review process. We're excited to bring this capability to our customers at no charge to supplement our large-scale document summary skill embedded in our Cecilia platform.

審查過程中的現實情況是，律師審查的許多文件可能長達數十頁，或使用外語或晦澀難懂的語言。這會減慢審核速度，而且會讓經歷審核過程的人感到壓力很大。文件摘要旨在克服所有這些障礙，並提供單一文件的即時、簡潔的摘要，從而提高律師的工作流程和審查速度。我們很高興能免費為我們的客戶提供這項功能，以補充我們 Cecilia 平台中嵌入的大規模文件摘要功能。

Next, we're excited about Cecilia auto review. I hinted at this feature on the last earnings call, and it is now being demoed with a small number of customers. Cecilia auto review leverages DISCO's AI to allow lawyers to set parameters that are then used to tag relevant documents in a case database. This is a core element of the legal review process to identify the most relevant documents for a given case.

接下來，我們很期待Cecilia的汽車評測。我在上次財報電話會議上暗示過這個功能，現在正在向一小部分客戶進行演示。Cecilia 自動審查利用 DISCO 的人工智慧，讓律師設定參數，然後使用這些參數在案件資料庫中標記相關文件。這是法律審查程序的核心要素，旨在確定特定案件中最相關的文件。

The test typically takes several lawyers and hundreds of hours to go through terabytes of data and manually tag thousands of documents. In one example, Cecilia auto review assess 9,000 documents in a live customer database in two hours, a task that would have required as much as 200 hours to manually complete.

該測試通常需要幾名律師花費數百小時來處理數TB的數據，並手動標記數千份文件。例如，Cecilia 自動審核在兩小時內評估了即時客戶資料庫中的 9,000 份文檔，而手動完成這項任務則需要長達 200 小時。

Importantly, the Cecilia results matched well over 90% of the results from the actual human review. And the customer acknowledged that in the small number of mismatches, it's probable that the Cecilia results were more correct. Imagine a significant improvement to lawyers' efficiency and how much additional time they will have to spend on building a strong case as opposed to reviewing a high volume of irrelevant documents. We're excited about this next Cecilia skill, and we'll have more updates on Cecilia auto review in the coming quarters.

重要的是，Cecilia 的結果與實際人類審查的結果有超過 90% 的吻合度。客戶也承認，在少數不匹配的情況下，Cecilia 的結果可能更準確。想像一下，律師的工作效率將會顯著提高，他們將有更多的時間來建構強有力的案件，而不是審查大量無關的文件。我們對 Cecilia 的這項新技能感到非常興奮，未來幾季我們將發布更多關於 Cecilia 自動評測的更新資訊。

Even as we continue to develop new Cecilia skills, we remain focused on enhancing our core ediscovery platform. A feature called data type and custom fields was among the many new features we delivered to our customers during this past quarter.

即使我們不斷開發新的 Cecilia 技能，我們仍然專注於增強我們的核心電子發現平台。資料類型和自訂欄位是我們上個季度向客戶推出的眾多新功能之一。

With this functionality, users can effectively search and sort custom field unlocking the full potential of DISCO's search functionality. With support for key data types like date time, text list, integer, boolean, and free text, this update empowers users to streamline their data management process for any field, standard, or custom, enabling more intuitive, and efficient ediscovery workflows.

借助此功能，使用者可以有效地搜尋和排序自訂字段，從而充分發揮 DISCO 搜尋功能的潛力。此更新支援日期時間、文字清單、整數、布林值和自由文字等關鍵資料類型，使用戶能夠簡化任何欄位（標準欄位或自訂欄位）的資料管理流程，從而實現更直觀、更有效率的電子取證工作流程。

Although a more technical feature, this has been one of the most requested enhancements from our customers, and we have already had a number of those customers request that we enable this capability on all of their matters. We believe our continuous platform enhancements and product releases, coupled with our deep understanding of legal workflow, UI, and architectural efficiency, provide their customers with technology solutions that enhance their ability to produce the best legal outcomes for their client.

雖然這是一項技術性較強的功能，但卻是客戶要求最多的改進功能之一，而且已經有許多客戶要求我們在他們所有的事務中啟用此功能。我們相信，我們不斷改進的平台和產品發布，加上我們對法律工作流程、使用者介面和架構效率的深刻理解，能夠為客戶提供技術解決方案，從而增強他們為客戶取得最佳法律成果的能力。

Our platform is efficient, scalable, and fast. In March alone, over 1.2 billion pages were produced on the platform. And at the peak, over 51.6 million pages were produced in a single hour. This highlights the scale of the DISCO offering and the ability to leverage our cloud-native platform to handle the largest matters with unparalleled efficiency.

我們的平台高效、可擴展且速度快。僅三月份，該平台就產生了超過 12 億個頁面。高峰時期，一小時內生產了超過 5,160 萬頁。這凸顯了 DISCO 產品的規模，以及利用我們的雲端原生平台以無與倫比的效率處理最大事務的能力。

From my first day in this role, I have consistently stated my strong belief that DISCO has the right people and products, so we accelerate growth and deliver profitability, positive cash flow, and enhance shareholder returns. We have analyzed our culture and go-to-market challenges and are developing action plans to materially improve both areas.

從我擔任這個職務的第一天起，我就一直堅信 DISCO 擁有合適的人才和產品，因此我們能夠加速成長，實現盈利，產生正現金流，並提高股東回報。我們分析了公司文化和市場推廣方面的挑戰，並正在製定行動計劃，以實際改善這兩個方面。

The launch of our stock buyback program in March was a reflection of our belief that a stronger culture and better go-to-market, combined with our talented employees, industry-leading products, and large growing market opportunity, support our objective to generate meaningfully more value than is reflected in our current share price. We're confident that Eric's leadership and experience can help DISCO realize that objective.

我們在三月啟動的股票回購計劃體現了我們的信念：更強大的企業文化和更完善的市場推廣，再加上我們才華橫溢的員工、行業領先的產品以及巨大的市場成長機會，能夠支持我們實現創造比當前股價所反映的價值更大的目標。我們相信，埃里克的領導能力和經驗能夠幫助 DISCO 實現這一目標。

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 Q1 2024, total revenues were $35.6 million, up 7% year over year. Software revenues were $29.9 million, up 9% year over year. Services revenues, which include DISCO manager review and professional services, were $5.7 million, up 2% year over year.

謝謝你，斯科特。2024 年第一季總營收為 3,560 萬美元，年增 7%。軟體營收為 2,990 萬美元，年增 9%。服務收入（包括 DISCO 經理審核和專業服務）為 570 萬美元，年增 2%。

As Scott mentioned in his remarks, we are continually adding capabilities to our platform. This was an exciting quarter for us as we are starting to see contributions from Cecilia, which Scott previously discussed at length. Since beginning to introduce Cecilia to the market in December 2023, we've been adding new customers at a healthy clip, which has been encouraging. At this point, Cecilia is still an immaterial portion of the business, but we are starting to see signs of traction with our customer base.

正如斯科特在演講中提到的那樣，我們正在不斷為我們的平台增加功能。對我們來說，這是一個令人興奮的季度，因為我們開始看到 Cecilia 的貢獻，Scott 之前對此進行了詳細的討論。自 2023 年 12 月開始向市場推出 Cecilia 以來，我們一直在穩步增加新客戶，這令人鼓舞。目前，Cecilia 在業務中所佔比例仍然很小，但我們開始看到它在客戶群中取得了一定的成效。

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 Q1 was 76%. 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 (non-GAAP) 為基礎。調整後 EBITDA 也是非公認會計準則財務指標。第一季毛利率為76%。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 Q1 was $14.7 million or 41% of revenue compared to 53% of revenue in Q1 of the prior year. The year-over-year decline is predominantly due to headcount changes.

第一季的銷售和行銷費用為 1,470 萬美元，佔收入的 41%，而去年同期該費用佔收入的 53%。年比下降主要是由於人員數量變化造成的。

Research and development expense for Q1 was $10 million or 28% of revenue compared to 39% of revenue in Q1 of the prior 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.

第一季的研發費用為 1,000 萬美元，佔營收的 28%，而去年同期則為 39%。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 Q1 was $8.8 million or 25% of revenue compared to 26% of revenue in Q1 of the prior year. General and administrative expenses were relatively flat year over year. Operating loss in Q1 was $6.5 million, representing an operating margin of negative 18% compared to negative 42% in Q1 of the prior year.

第一季一般及行政費用為 880 萬美元，佔營收的 25%，而上年同期佔營收的 26%。一般及行政費用與上年度相比基本持平。第一季營業虧損為 650 萬美元，營業利潤率為 -18%，而去年同期為 -42%。

Adjusted EBITDA was negative $5.2 million in Q1, representing an adjusted EBITDA margin of negative 15% compared to an adjusted EBITDA margin of negative 39% in Q1 of the prior year. Net loss in Q1 was $4.7 million or negative 13% of revenue compared to a net loss of $12.1 million or negative 37% of revenue in Q1 of the prior year. Net loss per share for Q1 was $0.08 compared to $0.20 per share for Q1 of the prior year.

第一季調整後 EBITDA 為負 520 萬美元，調整後 EBITDA 利潤率為負 15%，而上年同期調整後 EBITDA 利潤率為負 39%。第一季淨虧損為 470 萬美元，佔營收的 13%，而上年同期淨虧損為 1,210 萬美元，佔營收的 37%。第一季每股淨虧損為 0.08 美元，而去年同期每股淨虧損為 0.20 美元。

Turning to the balance sheet and cash flow statement, we ended Q1 with $148.7 million in cash and cash equivalents and no debt. Operating cash flow in Q1 was negative $7.3 million compared to negative $14.8 million in Q1 of the prior year.

從資產負債表及現金流量表來看，我們第一季末擁有現金及現金等價物1.487億美元，且無任何債務。第一季經營現金流為負730萬美元，而上年同期為負1,480萬美元。

Turning to the outlook. For Q2 2024, we are providing total revenue guidance in the range of $34.5 million to $36.5 million and software revenue guidance in the range of $29 million to $30 million. We expect adjusted EBITDA to be in the range of negative $7.5 million to negative $5.5 million. While we remain confident in our ability to accelerate our growth over the medium to long term, we did see some softness in the start of the second quarter, as Scott mentioned, which we expect will have an impact on our full-year numbers.

展望未來。對於 2024 年第二季度，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 2,900 萬美元至 3,000 萬美元之間。我們預計調整後的 EBITDA 將在 -750 萬美元至 -550 萬美元之間。儘管我們仍然對中長期加速成長的能力充滿信心，但正如斯科特所提到的，我們在第二季初確實看到了一些疲軟，我們預計這將對我們的全年業績產生影響。

For fiscal year 2024, we have narrowed our total revenue guidance range to $143 million to $151 million and software revenue guidance to the range of $120 million to $124 million. We continue to expect adjusted EBITDA to be in the range of negative $26 million to negative $19 million.

對於 2024 財年，我們將總營收預期範圍縮小至 1.43 億美元至 1.51 億美元，軟體營收預期範圍縮小至 1.2 億美元至 1.24 億美元。我們仍預期調整後的 EBITDA 將在 -2,600 萬美元至 -1,900 萬美元之間。

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？

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Scott Berg, Needham.

謝謝。現在開始問答環節。（操作說明）斯科特·伯格，尼德姆。

Hi, everyone. Thanks for taking my questions here. Eric, I guess welcome to the company. Look forward to connecting in person, but I wanted to hear about what your first priorities are, do you think, over maybe the first 90 to maybe 180 days with the company?

大家好。感謝您回答我的問題。艾瑞克，我想歡迎你加入公司。期待與您見面，但我想先了解一下您認為在加入公司的前 90 到 180 天內，您的首要任務是什麼？

Yeah, thanks, Scott. I really appreciate it. I've got a very detailed laid-out plan over the next 90 days. Very much focused on coming up to speed, as you can imagine, getting to know our people, our customers, our partners, our products, our business. It's going to be intense. I'm going to be learning a lot very quickly, but I also want to be moving at a quick enough pace to make sure that we're driving the right focus and that we're taking advantage of the best opportunities we possibly can.

謝謝你，斯科特。我非常感謝。我已經制定了一個非常詳細的未來90天計劃。正如您所想，我們非常專注於盡快熟悉情況，了解我們的員工、客戶、合作夥伴、產品和業務。將會非常激烈。我很快就會學到很多東西，但我也希望以足夠快的速度前進，以確保我們朝著正確的方向努力，並抓住我們所能抓住的最佳機會。

So I -- you know, it's funny because it's only been a week and a half, but I've already been able to join my first Board meeting, run my first company meeting, visit with our teams in both Austin and New York, and also spend time with five of our best customers. We're talking big law firms here in the US along with some Fortune 100 companies. And that was great experience, really understanding the value that they're getting today out of DISCO products, the opportunities they see for us to do more with them, and interestingly, their desire to embrace AI.

所以——你知道，這很有趣，因為才過了一周半，但我已經能夠參加我的第一次董事會會議，主持我的第一次公司會議，拜訪我們在奧斯汀和紐約的團隊，並與我們五位最好的客戶共度時光。我們這裡指的是美國的大型律師事務所，以及一些財星 100 大公司。這是一次很棒的經歷，讓我真正了解了他們目前從 DISCO 產品中獲得的價值，他們看到了我們利用這些產品做更多事情的機會，而且有趣的是，他們渴望接受人工智慧。

So I've got a lot of learning to do. The next several weeks, I'm going to be visiting teams in India and in London and meeting with many more of our customers and partners.

所以我還有很多東西要學。接下來的幾週，我將走訪印度和倫敦的團隊，並與更多的客戶和合作夥伴會面。

Great. And then I wanted to follow up on, Scott, Michael's comment on softness in the quarter. Can you maybe double-click on that and expand upon is it more on service side, specifically within ediscovery, large customers, small customers? Any additional details there would be helpful. Thank you.

偉大的。然後，我想就斯科特和邁克爾關於本季疲軟的評論做個補充說明。您能否雙擊該連結並詳細說明一下，這更多是服務方面的問題，特別是電子取證方面的問題，涉及大客戶還是小客戶？如果能提供更多細節就更好了。謝謝。

Yes. Scott, thanks. It's Scott. I'll take that question and then Michael can chime in if he wants to add anything to it.

是的。斯科特，謝謝。是斯科特。我先回答這個問題，如果麥可想補充什麼，他可以再插話。

So I think what you're seeing in the softness in the second quarter is very simply a minor impact from the reorganization we're doing on the sales side. As I've talked about for the last couple of calls and particularly on the last call, we have for the first time as a company segmented our customers and started to develop an approach that is unique relative to what those customers look like, how they buy, their size, the type of law they practice.

所以我認為，你在第二季看到的疲軟表現，只是我們對銷售方面進行重組所帶來的輕微影響。正如我在過去幾次電話會議，特別是上次電話會議上所談到的，我們公司第一次對客戶進行了細分，並開始製定一種獨特的策略，這種策略是根據這些客戶的特徵、購買方式、規模以及他們從事的法律類型而製定的。

And we've effectively started to align our team in such a way that, for example, our field sales is now 100% focused on the Am Law 100 and large corporations. And we'll drive a focus that will be supplemented by SDR investments and marketing investments. Our inside sales team is going to pick up some of the lower end of that group plus the mid-market. Our -- some other parts of our inside sales team will pick up the, what I'll call the SMB elements of the market that we're going to approach.

我們已經有效地開始調整團隊，例如，我們的現場銷售現在 100% 專注於美國律師協會 100 強和大型企業。我們將重點關注銷售開發代表 (SDR) 投資和行銷投資。我們的內部銷售團隊將負責該群體中低端市場以及中端市場的部分客戶。我們內部銷售團隊的其他一些成員將負責我們即將接觸的市場中的中小企業客戶。

And so as we've reassigned people to those different roles, we allow them through the first quarter to close open opportunities. We didn't want to leave money sitting on the table. But now they've turned to what's next in terms of their roles and their focus over that segmentation. For example, in big on the corporate side, those are relationships that take time to build and the teams are just in the process of doing that.

因此，在我們把人員重新分配到這些不同的職位後，我們允許他們在第一個季度內完成空缺職位的填補工作。我們不想讓錢白白浪費掉。但現在，他們已經開始思考下一步該如何發展，以及他們在細分市場中的職責和關注重點。例如，在大公司裡，這些關係需要時間建立，團隊目前正處於建立關係的過程中。

And so a little bit of softness in the quarter related to the reorganization. But the good news from my perspective, it is a very small step back that I think positions us for a really important large step forward. Once we've gotten this segmentation work done, our field resources, reassigned, and re-established and our marketing, and our go-to-market investments really aligned with that segmentation.

因此，由於重組，本季業績略有疲軟。但從我的角度來看，好消息是，這只是很小的一步退步，我認為這為我們邁出真正重要的一大步奠定了基礎。一旦我們完成了這項細分工作，我們的現場資源、重新分配和重新建立，以及我們的行銷和行銷投資都真正與該細分保持一致。

Excellent. Thanks for taking my questions.

出色的。謝謝您回答我的問題。

Thanks, Scott.

謝謝你，斯科特。

Brian Essex, JPMorgan.

Brian Essex，摩根大通。

Hi, good afternoon and thank you for taking the questions. I was wondering if maybe you could offer a little bit of insight into given some of the changes that you're currently going through, both on the executive side as well as some of the changes in go-to-market initiatives. Thoughts on when you might start to see a meaningful level of acceleration on the top line? And then any kind of benchmarking for your outlook to achieve profitability, positive cash flow as a result of these changes?

您好，下午好，感謝您回答問題。我想知道，鑑於您目前正在經歷的一些變化，包括管理層方面的變化以及市場推廣策略方面的一些變化，您是否可以提供一些見解。您認為何時才能看到營收有顯著成長？那麼，對於這些變化能否帶來獲利和正現金流，您是否制定了任何基準來評估預期？

Yes. So I don't want to put a timeline on it, but what I will say to you is that we demonstrated that we can grow revenues on a sequential basis. We've done that for the last three quarters in software. Not only have dollars accelerated, but growth has accelerated. And despite the small backward movement in 2Q dollars, the growth in 2Q software, if you look at the midpoint of our guidance is 9%, which is consistent with what we did in the first quarter.

是的。所以我不想設定時間表，但我可以告訴你們的是，我們已經證明我們可以實現收入的持續成長。過去三個季度，我們在軟體方面一直這樣做。不僅美元升值加速，經濟成長也加速了。儘管第二季美元收入略有回落，但第二季軟體業務的成長，如果按照我們預期的中位數計算，為 9%，這與我們第一季的表現一致。

I'm confident, as we've talked about, however, that the ability -- and I said it on the last call, the ability for us to get back to 15%, 20%, 25% growth, which I think we're capable of, really depends on us, refocusing on the right customers and approaching them in the right way. And that's the investment that we're making. I believe -- whether that begins to pay off later this quarter, into the third quarter, or later this year is harder to say, but there's no doubt in my mind that it will pay off.

不過，正如我們之前討論過的，我相信，我們能否恢復到 15%、20%、25% 的增長水平——我在上次電話會議上也說過——我認為這是我們有能力實現的，這實際上取決於我們能否重新專注於正確的客戶，並以正確的方式接近他們。這就是我們正在進行的投資。我相信——至於這會在本季度晚些時候、第三季度還是今年晚些時候開始產生效果，還很難說，但我確信它一定會產生效果。

And I'm not sure we could have a better time for Eric to join. Eric brings a tremendous amount of background from a go-to-market standpoint. He has more than doubled the revenues at his last company. And so as we've begun the early stages of making the changes in our go-to-market, Eric joins at a moment where he can help refine those, enhance those, and then accelerate them. So that not only will the payoff come faster, but I believe it will be a multiple of what it would be without his leadership.

我不確定現在是否還有比這更好的時機讓艾瑞克加入。Eric 在市場推廣方面擁有非常豐富的經驗。他在上一家公司的收入翻了一番還多。因此，在我們開始對市場策略進行變革的早期階段，艾瑞克的加入正值此時，他可以幫助改善、加強並加速這些變革。這樣一來，不僅回報會更快到來，而且我相信回報將是沒有他領導時的數倍。

Yeah. And this is Eric. Let me just jump in here, too. What I would say is that I've had the opportunity to spend quite a bit of time with our senior leadership team that's involved in go-to-market: Andrea, our SVP of Sales; and Tom, our CMO; Melanie, our Chief Customer Officer. And I've really been so far very impressed at the work that they're doing to leverage data to understand where we have the most opportunity.

是的。這位是埃里克。我也想插句話。我想說的是，我有機會花了很多時間和我們負責行銷的高階領導團隊成員交流：銷售資深副總裁 Andrea、首席行銷長 Tom 和首席客戶長 Melanie。到目前為止，他們利用數據來了解我們最大的機會所在所做的工作，這真的給我留下了非常深刻的印象。

As Scott has mentioned in the past, 75% of our revenue comes in from our top customers. And then there are some of those outside the 75% that should be our top customers. There's a lot of opportunity there.

正如斯科特之前提到的那樣，我們 75% 的收入來自我們的大客戶。此外，還有一些不在75%範圍內的人，他們應該是我們的頂級客戶。那裡有很多機會。

And I've been doing this for a long time. Every successful organization that I've ever worked with over the last three decades-plus has started by doing a really good job of understanding their customers, segmenting those customers, and then allocating their resources to where they can generate the most value for the customers and the most revenue for the company.

我從事這項工作已經很久了。在過去三十多年裡，我接觸過的每一個成功的組織，都是從真正了解他們的客戶、對客戶進行細分，然後將資源分配到能夠為客戶創造最大價值、為公司創造最大收入的地方開始的。

And I think we're on the right track. I think that we are segmenting in the right way and we're going to make investments in pursuing those customers and expanding within those customers where we can really grow. We're still going to be acquiring net new customers, but we're going to be allocating a good share of our resources to where we think we can get the most revenue, which is in many of our biggest customers.

我認為我們走在正確的道路上。我認為我們的市場區隔方式是正確的，我們將投資於爭取這些客戶，並在這些客戶群中拓展業務，從而真正成長。我們仍將繼續獲取新客戶，但我們會將相當一部分資源投入到我們認為能夠獲得最大收入的地方，也就是我們許多最大的客戶那裡。

And then I do want to pick up on the part of your question I didn't answer because it is important and it is a focus of ours. Fundamentally, the way to sustainable profitability is by re-energizing our top-line growth. And we're committed to doing that.

然後，我想就您問題中我沒有回答的那部分內容再補充一點，因為這很重要，也是我們關注的重點。從根本上講，實現可持續獲利的途徑是重振營收成長。我們致力於做到這一點。

I hope you'll notice that even with the slight reduction in the revenue guidance, we held EBITDA. And that's because we are making the investments we need to make. But we're also finding ways to optimize as we re-evaluate how to apply marketing and SDR, and those types of investments in go-to-market.

希望您能注意到，即使收入預期略有下調，我們仍保持了 EBITDA 目標。那是因為我們正在進行必要的投資。但我們也正在重新評估如何應用行銷和銷售開發代表 (SDR) 以及這些類型的行銷投資，以找到優化的方法。

And so our path to profitability is no different than what I said on the last call. This is the year of investment to get us back to growing. That growth as you move into '25 and '26 is what will drive us not only to profitability but the sustainable and improving profitability.

因此，我們實現盈利的路徑與我上次電話會議上所說的並無二致。今年是投資之年，我們要重回成長軌道。隨著我們邁入 2025 年和 2026 年，這種成長不僅將推動我們實現盈利，而且將推動我們實現可持續和不斷提高的盈利能力。

Got it. Super helpful. And any way you can indicate -- it's a 75% of your revenue from your top customers. What -- how do you define a top customer? And is there any way you can quantify how that cohort's been growing, maybe unit economics around that cohort?

知道了。非常有用。任何你能想到的方式——這佔你收入的 75%，都來自你的頂級客戶。什麼？ ——你如何定義頂級客戶？有沒有辦法量化該群體成長情況，例如該群體的單位經濟效益？

Yeah. So what Eric was referring to, as you look at our 10-K, and we mentioned this on our last call that we had nearly 300 customers that spent more than $100,000 with us over the full year of 2023. And it's that group of customers that make up 75% of our revenue.

是的。所以，艾瑞克所指的，正如你查看我們的 10-K 報告時所看到的，我們在上次電話會議上也提到過，我們有近 300 位客戶在 2023 年全年消費超過 10 萬美元。正是這部分客戶貢獻了我們 75% 的營收。

Of note, if you go back two years, that number has grown by over 30%. That's great news. That's a super important metric for us because that means we are growing the wallet share at those nearly 300 customers.

值得注意的是，如果將時間倒回兩年，這個數字增加了 30% 以上。真是個好消息。這對我們來說是一個非常重要的指標，因為這意味著我們在近 300 位客戶中的錢包份額正在成長。

We also mentioned on the last call that we had customers who had spent more than $1 million with us that we're now in excess of 20. That growth has been a little bit less, but that again is a real opportunity for us because we are wallet share-constrained. Those nearly 300 customers who spent over $100,000 are the next opportunity to spend over $1 million.

我們在上次電話會議中也提到，我們有一些客戶在我們這裡消費超過 100 萬美元，現在我們已經有超過 20 位這樣的客戶了。雖然成長速度稍慢一些，但這對我們來說也是一個真正的機會，因為我們的市場份額有限。那近 300 位消費超過 10 萬美元的顧客，是下一個消費超過 100 萬美元的機會。

And so we're very focused in how we deploy our sales resources towards those customers who have the opportunity to grow with us and then to invest more with it. It's one of the reasons why in my prepared remarks, I talk about the technology -- 1.2 billion pages, 51 million pages in an hour. Those are gee whiz facts. But what does it mean?

因此，我們非常注重如何將銷售資源部署到那些有機會與我們共同成長並進行更多投資的客戶身上。這也是為什麼我在準備好的演講稿中談到這項技術的原因之一——12億頁，每小時5100萬頁。這些都是令人驚嘆的事實。但這究竟意味著什麼？

What it means is our platform can scale. It can handle the largest matters our customers have. And as we get that message out in front of the customers and build those relationships, those are key metrics we're going to keep in front of you -- who's buying more than $100,000? Who's buying more than $1 million? That's where the growth is going to come from.

這意味著我們的平台可以擴展。它可以處理我們客戶遇到的最大問題。當我們把這個訊息傳遞給客戶並建立這些關係時，我們將重點關注以下關鍵指標——誰購買了超過 10 萬美元的產品？誰會購買超過100萬美元的商品？成長的動力就來自那裡。

Clearly, we're going to cover the entire customer base because there are opportunities inside the 1,400 where people could spend the $1 million but aren't even at $100,000 yet. But as Eric was mentioning, a key for us is focus. Figure out where the opportunity is, align the investment, align the resource, focus, and then go execute.

顯然，我們將涵蓋整個客戶群，因為在 1400 名客戶中存在著機會，他們可能會消費 100 萬美元，但目前甚至還沒有達到 10 萬美元。但正如艾瑞克所提到的，對我們來說，關鍵在於專注。找出機會所在，調整投資方向，調配資源，集中精力，然後付諸行動。

Okay, very helpful. Thank you very much.

好的，很有幫助。非常感謝。

(Operator Instructions) Brent Thill, Jefferies.

（操作說明）布倫特·蒂爾，傑富瑞。

Well, this is Eylon Liani on for Brent Hill. Thank you for taking my question. The first one is to Eric. Nice to meet you. My question is if you could shed some color on what drew you to DISCO and maybe your vision for the company three to five years out?

好的，這裡是代表布倫特·希爾的埃隆·利亞尼。感謝您回答我的問題。第一封是給艾瑞克的。很高興見到你。我的問題是，您能否詳細介紹一下是什麼吸引您加入 DISCO，以及您對公司未來三到五年的願景？

Sure. Very nice to meet you. Thank you. I've been super fortunate. I've worked with some great teams over the years and had some experiences that have put me in a position where I had a few choices. I saw a number of opportunities and I could be a little selective about where I wanted to go next. And I really was looking for a company where I felt like there was significant growth, whether it was a solid customer base, a strong set of differentiated products, and then a mission that I could get behind, and a solid team of people.

當然。很高興見到你。謝謝。我真是太幸運了。這些年來，我曾與一些優秀的團隊共事，也經歷了一些事情，這些經驗讓我面臨一些選擇。我看到了很多機會，我可以稍微挑剔自己接下來要去哪裡。我當時真的在尋找一家我覺得有顯著成長潛力的公司，無論是擁有穩固的客戶基礎、強大的差異化產品組合，還是擁有我能認同的使命和優秀的團隊。

And so it was sort of a no-brainer, to be perfectly honest, to come to DISCO. I felt like we had really good people, loyal employees at DISCO who even though they've been through some tough times, they're committed to the future and they're passionate about the mission to make law better. We had some -- we've got products that are state of the art, and they're only getting better. We've got new enhancements, new products coming out, and industry-leading approach to AI that's differentiated from our competitors.

所以，說實話，來迪斯可舞廳演出幾乎是理所當然的。我覺得我們在 DISCO 擁有非常優秀的員工，他們忠誠可靠，儘管經歷了一些艱難時期，但他們仍然對未來充滿信心，並且對改善法律的使命充滿熱情。我們有一些——我們有一些最先進的產品，而且它們還在不斷改進。我們推出了新的增強功能、新產品，以及業界領先的人工智慧方法，這使我們與競爭對手區分開來。

And I think the other thing I felt about DISCO is that the challenges that we've got are ones that I have overcome time and time again. And I've got an incredible amount of confidence that we can get back to a really significant growth trajectory here at DISCO. So I felt like the company is really a strong company and the challenges that we're ahead are ones that I have done before and I look forward to doing at DISCO.

我覺得我對 DISCO 的另一點感受是，我們面臨的挑戰，我曾經一次又一次地克服過。我非常有信心，DISCO 能夠重回正軌，實現顯著成長。所以我覺得這家公司實力很強，我們即將面臨的挑戰是我以前遇到的，我期待在 DISCO 迎接這些挑戰。

Super helpful color. And just as a quick follow-up, when I look at the 2024 guide, given the softness embedded in 2Q and the tough comp in 4Q, what are you seeing in the business that gives you confidence in that full-year guide? More specifically, if you can shed some color around what you're seeing around pipeline activity and large customer usage, that would be super helpful. Thanks.

非常實用的顏色。最後，我想快速問一下，當我查看 2024 年的業績指引時，考慮到第二季度的疲軟以及第四季度同比數據的高企，您在業務方面看到了什麼，讓您對全年業績指引充滿信心？更具體地說，如果您能詳細說明您在銷售通路活動和大客戶使用方面觀察到的情況，那將非常有幫助。謝謝。

Yeah. Thanks for the question. So we continue to see not only large customers engaged but customers across the board. And Eric mentioned some of the reasons why even though Cecilia may not be a large revenue contributor for us yet, it is certainly a door opener. And so there are a lot of conversations that are initiated based upon -- well, this Cecilia thing looks really interesting. It looks like it could be truly transformative. Let's have a conversation.

是的。謝謝你的提問。因此，我們不僅看到大客戶參與其中，而且看到所有類型的客戶都參與其中。艾瑞克提到了一些原因，雖然塞西莉亞目前可能還不能為我們帶來可觀的收入，但它無疑是一扇打開大門的鑰匙。因此，許多對話都是基於這樣的前提而展開的——嗯，這個塞西莉亞的事情看起來真的很有趣。它看起來可能會帶來真正的改變。我們來聊聊吧。

And so the inbound calls that we're taking from customers wanting to hear more about the generative AI offerings are really what encourages me. And again, if you look at it, to get to the midpoint of the guide, we've got to accelerate about $1 million a quarter for the next couple of quarters. That, on average, is what we've done for the last three quarters. So it's not going to require something that's necessarily outsized.

因此，客戶打來的諮詢電話，他們想了解更多關於生成式人工智慧產品的信息，這真的讓我很受鼓舞。再說一遍，如果你仔細觀察，你會發現，要達到指南的中點，我們必須在接下來的幾個季度裡，每季加速成長約 100 萬美元。過去三個季度，我們平均都是這樣做的。所以不一定需要體積很大的東西。

Again, we've got to work our way through this transition of the go-to-market and the reorganization of the sales team and realignment of investment. That's kind of the risk, but I view that as more of an internal risk versus an external one in the sense of it sets us up for external success, whether it's a month from now or three months from now.

再次強調，我們必須逐步完成市場進入方式的轉變、銷售團隊的重組、投資的重新調整。這算是風險吧，但我認為這更多的是一種內部風險，而不是外部風險，因為它能讓我們為外部成功做好準備，無論是一個月後還是三個月後。

And so my confidence in the rest of the year really is embedded in some of the things Eric talked about. The people are focused and committed. We've regained our innovation lead on the product side, which is opening doors to customer conversations, which I believe will lead to revenue growth and an acceleration of revenue in the back half of the year and more importantly into 2025.

因此，我對今年剩餘時間的信心確實來自於艾瑞克談到的一些事情。員工們目標明確，盡責。我們在產品方面重新取得了創新領先地位，這為與客戶對話打開了大門，我相信這將在今年下半年以及更重要的到 2025 年帶來收入成長和加速成長。

Perfect. Thanks.

完美的。謝謝。

Mark Schappel, Loop Capital.

Mark Schappel，Loop Capital。

Hi. Thank you for taking my call. Eric, welcome, number one. And secondly, Scott, a question for you. I appreciate the color earlier on the new deposition summary tool. But in general, regarding your new AI products, I was wondering if you just provide some further insights in how you're thinking about monetizing those capabilities. I believe the deposition summary was no charge. How are you thinking about monetizing the other tools you're working on?

你好。謝謝您接聽我的電話。艾瑞克，歡迎你，一號人物。其次，史考特，我有個問題想問你。我很喜歡新版存款總結工具中早期使用的色彩。但總的來說，關於你們的新人工智慧產品，我想知道你們能否進一步闡述你們是如何考慮將這些功能貨幣化的。我認為證詞摘要顯示沒有提出指控。您打算如何將您正在開發的其​​他工具商業化？

Yeah. So thanks for the question. And I appreciate it, in particular, because I want to give a shoutout to our product and engineering team.

是的。謝謝你的提問。我特別要感謝我們的產品和工程團隊，因為我想特別表揚他們。

Our Cecilia document summary capabilities are ones that can handle a mass amount of documents, hundreds and thousands of documents that we can summarize for our customers. But what we were running into with competition is, oh, but the competitor is giving me document summary for free. And then we ask, well, what do you mean? How could they possibly be doing that?

我們的 Cecilia 文檔摘要功能可以處理大量文檔，我們可以為客戶摘要成百上千份文檔。但我們遇到的競爭問題是，哦，但是競爭對手免費提供文件摘要。然後我們就會問，嗯，你這是什麼意思？他們怎麼可能做出這種事？

What they meant was they would summarize a document for free. And so we were competing in a world where we have built industrial-scale capability and competitors were offering single document summaries, which again, it's useful if I'm a lawyer and I don't want to read 12 pages. I can get a quick summary. That's helpful.

他們的意思是他們會免費提供文件摘要。因此，我們身處一個我們已經建立起工業規模能力的世界，而競爭對手卻只提供單份文件摘要，這當然很有用，比如我是一名律師，我不想閱讀 12 頁的內容。我可以快速取得一份摘要。那很有幫助。

Our team in the course of four weeks from the time we got the feedback that that was an impediment to sales to the time we launched an offering to customers was measured in four weeks. And I think that demonstrates to you the remarkable capabilities of our technology because we'll still happily sell you what we think is truly the more value add that can summarize many documents. But if what you need is something that can do one document, here it is for free. Don't let that be a hurdle to doing the deal with us.

從我們收到回饋（即這會阻礙銷售）到我們向客戶推出產品，我們的團隊花了四週時間。我認為這足以證明我們技術的卓越能力，因為我們仍然樂於向您銷售我們認為真正更具附加價值的產品，它可以總結許多文件。但如果您需要的只是能夠處理單一文件的工具，那麼這款免費工具就適合您。不要讓這件事成為與我們達成交易的障礙。

And so as we think about the Cecilia capabilities, the skills as we refer to them, we think about it in kind of a twofold way. Number one, we clearly think of it as a way that our existing customers can get more value out of their relationship with DISCO by leveraging things like Q&A or embedded in case builder timelines to do their work more efficiently.

因此，當我們思考 Cecilia 的能力，也就是我們所說的技能時，我們會從兩個方面來考慮。首先，我們明確地認為，透過利用問答或嵌入案例建構器時間表等功能，現有客戶可以從與 DISCO 的關係中獲得更多價值，從而更有效率地完成工作。

We also believe that the innovation adds that we have in those products opens the door to new customers who want that efficiency, and we'll then move their cases and their databases on to our platform to be able to leverage it. And so we're still working our way through what the individual pricing versus the package pricing and the overall strategy will be. But it's certainly a place where we feel like it's a value pricing strategy and not one that simply chases the lowest dollar.

我們也相信，這些產品中的創新附加功能為希望獲得這種效率的新客戶打開了大門，然後我們將把他們的案例和資料庫轉移到我們的平台上，以便能夠利用它。因此，我們仍在研究單一產品定價與套餐定價以及整體策略。但我們感覺，這裡的定價策略是價值定價，而不是一味追求最低價格。

Yeah. And I'll just jump in on that, too. This is Eric. I think I am very optimistic about Cecilia AI and all of the capabilities. And it's not just from seeing demos of the product you're speaking with the DISCO team, but it's from speaking with customers and understanding that they believe that AI is going to revolutionize the industry at this point.

是的。我也想參與討論一下。這是埃里克。我對 Cecilia AI 及其所有功能都非常樂觀。而且，這不僅僅是透過觀看產品演示與 DISCO 團隊交流，而是透過與客戶交談，了解他們相信人工智慧將在現階段徹底改變這個產業。

And DISCO's got a significant leg up on the competition. It's all about the investment that we've made in AI for the past several years. We're far ahead when it comes to things like security, speed, reliability, capabilities. The early feedback so far on Cecilia Q&A is very positive. We're starting to get some feedback in on deposition summaries and automated review. And that's a pretty incredible opportunity.

迪斯可音樂在競爭中佔了顯著優勢。這一切都與我們過去幾年在人工智慧領域的投資有關。我們在安全性、速度、可靠性、功能等方面遙遙領先。目前為止，Cecilia Q-A 的早期回饋非常正面。我們開始收到一些關於審判摘要和自動審查的回饋意見。那真是一個絕佳的機會。

And some of these capabilities, particularly automated review, is one that I think about where it's a game changer. The amount of time that we can save customers with AI is going to create opportunity for the customer to save money and it's going to create the opportunity for DISCO to generate better margins.

其中一些功能，特別是自動審核功能，我認為它具有顛覆性的意義。人工智慧可以為客戶節省時間，從而為客戶創造省錢的機會，同時也能為 DISCO 創造獲得更高利潤的機會。

(multiple speakers) Then one follow-up here. Michael, I was wondering if you just address the churn in the quarter.

（多人發言）接下來還有一個問題。邁克爾，我想知道你是否只處理季度內的客戶流失問題。

Hey, Mark, thanks for the question. So in terms of churn, I mean, we've previously disclosed our dollar-based net retention at the end of the year in the K. And we obviously -- Q1 was a good quarter. We were pleased with the results. We would have preferred a bigger beat than we had. We were basically in line with the guidance.

嘿，馬克，謝謝你的提問。所以就客戶流失而言，我的意思是，我們之前在K報告中揭露了年底以美元計價的淨留存率。顯然，第一季是一個不錯的季度。我們對結果很滿意。我們原本希望節奏能更強勁一些。我們基本上是按照指導方針行事的。

And we've discussed a little bit about some of the softness in Q2. But what I will tell you -- and I agree with everything Scott said -- we feel really confident about the second half of the year. And a lot of the investments that we've made and are still making are going to pay off and get us back to where we can reaccelerate revenue, which also would lead to improved dollar-based net retention numbers back to where they used to be.

我們已經稍微討論過第二季的一些疲軟現象。但我可以告訴你們的是——而且我完全同意斯科特所說的——我們對下半年充滿信心。我們已經進行和正在進行的許多投資都將獲得回報，使我們能夠重新加速收入成長，這也將使以美元計價的淨留存率恢復到以前的水平。

Mark, just a couple of data points to reinforce that point, customer count was up year over year and up a little bit modestly from where it was the prior quarter. And DNR also ticked up slightly from where it was at the end of the year. So each of those metrics, as Michael alluded to, suggest that, that along with the revenue performance in the quarter, suggest that the churn was modest and not really a factor in the quarter.

馬克，這裡舉幾個數據點來佐證你的觀點：客戶數量同比增長，並且比上一季略有增長。DNR 的數值也比年底略為上升。正如邁克爾所暗示的那樣，這些指標以及本季的收入表現都表明，客戶流失率並不高，並沒有對本季業績造成太大影響。

Okay, great. Thank you.

好的，太好了。謝謝。

That concludes our question-and-answer session. I will now turn the call back over to incoming Chair of the Board of Directors, Scott Hill, for some final closing remarks.

我們的問答環節到此結束。現在我將把電話轉回給即將上任的董事會主席斯科特·希爾，請他作最後的總結發言。

Thank you very much. Thank you all for joining our call today. When I stepped into the CEO role eight months ago, my goal was to stabilize the company and work with my DISCO colleagues to acknowledge and more importantly, improve what was broken, reinvest in what was working, and recreate forward momentum.

非常感謝。感謝各位今天參加我們的電話會議。八個月前我擔任執行長時，我的目標是穩定公司，並與 DISCO 的同事們一起，承認並更重要的是改進存在的問題，重新投資於有效的方面，並重新創造前進的動力。

I want to thank all of my colleagues here at DISCO who have leaned in and focused forward and helped us get the company back on the right track. Your commitment to our customers and our company inspires me. A lot of hard work remains to be done, but the opportunity is there for us to take. Now we have to come together and execute.

我要感謝DISCO的所有同事，感謝他們積極投入工作，專注於前進，幫助我們讓公司重回正軌。您對客戶和公司的奉獻精神令我深受鼓舞。還有很多艱苦的工作要做，但機會就在眼前，我們必須抓住它。現在我們必須團結起來，共同執行。

I also want to thank our customers and investors for their patience and their loyalty. We're refocused on serving you and generating positive returns. Eric, welcome to the job. Anything you'd like to add?

我還要感謝我們的客戶和投資者的耐心和忠誠。我們重新調整了工作重心，致力於為您提供優質服務並創造正面的回報。艾瑞克，歡迎加入這份工作。您還有什麼要補充的嗎？

Yeah, Scott. Actually, first of all, I just want to thank you one more time for everything that you've done for DISCO over these past several months. I'm very fortunate that we get to work together with you as Chair of the Board. So I'm looking forward to that.

是的，斯科特。首先，我想再次感謝你在過去幾個月為 DISCO 所做的一切。我非常榮幸能與您這位董事會主席共事。所以我很期待。

And like you, I very much appreciate our customers, our partners, and our investors. I'm looking forward, I'm optimistic about the future of DISCO, and I look forward to sharing more at our next quarter's earnings call. So thank you, everybody, for joining the call and have a great evening.

和您一樣，我非常感謝我們的客戶、合作夥伴和投資者。我對DISCO的未來充滿期待和樂觀，並期待在下一季的財報電話會議上與大家分享更多資訊。謝謝大家參加這次電話會議，祝大家晚上愉快。

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。