CS Disco Inc (LAW) 2024 Q3 法說會逐字稿

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

女士們先生們，感謝你們的支持並歡迎參加 CS Disco 2024 財年第三季電話會議。（操作員說明）

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

現在我想將會議交給今天的第一位發言者，投資者關係主管 Aleksey Lakchakov。請繼續。

Good afternoon and thank you for joining us on today's conference call to discuss the financial results for Disco's third quarter of fiscal year 2024. With me on today's call are Eric Friedrichsen, 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 reformat of 1995 including but not limited to statements regarding our financial outlook and future performance.

下午好，感謝您參加今天的電話會議，討論 Disco 2024 財年第三季的財務業績。與我一起參加今天電話會議的有 Disco 執行長 Eric Friedrichsen 和迪斯科財務長 Michael Lafair。今天的電話會議將[包括] 1995 年私人證券訴訟改革的安全港條款含義內的前瞻性聲明，包括但不限於有關我們的財務前景和未來業績的聲明。

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

行政領導層變動對我們未來的資本支出、市場機會、市場地位、產品策略和成長機會的影響。我們的產品和發展在法律科技產業的優勢，包括與人工智慧的角色相關的優勢。除了我們準備好的言論之外，您還可以在我們的投資者關係網站 ir.csdisco.com 上找到我們向 SEC 提交的收益新聞稿和今天電話會議的重播。

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，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結果、績效或成就有重大差異。

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 quarterly report on form 10-Q for the quarter ended June 30, 2024, filed with the SEC on August 8, 2024. And the company's upcoming quarterly report on form 10-Q for the quarter ended September 30, 2021.

前瞻性陳述僅代表我們管理階層截至做出之日的信念和假設。有關可能影響公司財務表現的因素的資訊包含在其不時向SEC 提交的文件中，包括公司向SEC 提交的截至2024 年6 月30 日的季度10-Q 表格季度報告中標題為「風險因素」的部分。該公司即將發布截至 2021 年 9 月 30 日的季度 10-Q 季度報告。

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 measure 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 on our earnings release. And with that, I'd like to turn the call over to Eric.

此外，在今天的電話會議中，我們將討論非公認會計準則財務指標。這些非公認會計原則財務指標是根據公認會計原則編制的財務績效指標的補充，而不是替代或優於這些指標。我們的收益報告中提供了 GAAP 和非 GAAP 財務指標之間的對賬，以及使用非 GAAP 指標與最接近的 GAAP 指標相比使用非 GAAP 指標的局限性的討論。說到這裡，我想把電話轉給艾瑞克。

Hello, everyone and welcome to Disco's third quarter of 2024 earnings call. I'm excited to review our results today and to dive into our forward-looking strategy. Total revenue for the third quarter of 2024 was $36.3 million Up 4% versus the same quarter last year. Software revenue in Q3 was $30.2 million Up 6% over the prior year. Adjusted EBITDA was negative $4.5 million Or negative 12% adjusted EBITDA margin.

大家好，歡迎參加 Disco 2024 年第三季財報電話會議。我很高興能夠回顧我們今天的業績並深入探討我們的前瞻性策略。2024 年第三季總營收為 3,630 萬美元，比去年同期成長 4%。第三季軟體營收為 3,020 萬美元，較上年成長 6%。調整後 EBITDA 為負 450 萬美元，或調整後 EBITDA 利潤率為負 12%。

We are pleased with our performance in Q3, and we continue to make progress on the initiatives that we have previously discussed along with some new ones that I will highlight on this call. Q3 marked my first full quarter and just last week, I celebrated my six month anniversary as Disco's CEO.

我們對第三季的表現感到滿意，我們將繼續在之前討論過的舉措以及我將在本次電話會議上強調的一些新舉措上取得進展。第三季度標誌著我的第一個完整季度，就在上週，我慶祝了我擔任 Disco 執行長的六個月週年紀念日。

In the last quarter's call, I shared how my confidence in our product was very high and it has only grown since I had the opportunity to meet face to face with over 40 customers including lawyers and eDiscovery leaders from Am Law firms and large corporations across the US and the UK. These conversations have further reinforced my belief in the value that Disco delivers. With our powerful eDiscovery tools and the advanced capabilities of Cecilia AI Disco stands out as the best platform in the industry.

在上個季度的電話會議中，我分享了我對我們產品的信心是如何非常高的，並且自從我有機會與40 多名客戶面對面交流以來，這種信心一直在增長，其中包括來自Am 律師事務所和大型企業的律師和電子取證領導者。這些對話進一步增強了我對迪斯可傳遞價值的信念。憑藉我們強大的電子鑑識工具和 Cecilia AI Disco 的先進功能，Disco 脫穎而出，成為業界最佳平台。

Our customers affirm this, they love, this goes intuitiveness, accuracy and speed. Time and time again, I hear how Disco drives meaningful value by boosting efficiency, reducing costs and most importantly, empowering lawyers to improve legal outcomes for their clients. Our customers are energized by Disco's new strategic direction. Our strengthens leadership and the cultural growth that we have demonstrated.

我們的客戶肯定了這一點，他們喜歡這種直覺性、準確性和速度。我一次又一次地聽到 Disco 如何透過提高效率、降低成本以及最重要的是幫助律師改善客戶的法律結果來推動有意義的價值。Disco 的新策略方向讓我們的客戶充滿活力。我們加強了領導力和我們所展現的文化成長。

Many of them are eager to expand their engagement with us. However, to get our product into the hands of more legal professionals, we need to continue to improve in the three primary areas that I outlined on our last call. Those are becoming a more Customer focused organization primarily by strengthening our go to market motion, enhancing our internal operations and fostering our continued cultural improvement.

他們中的許多人渴望擴大與我們的接觸。然而，為了讓更多法律專業人士掌握我們的產品，我們需要繼續改進我在上次電話會議中概述的三個主要領域。主要透過加強我們的行銷行動、加強我們的內部營運和促進我們持續的文化改進，這些組織正在成為一個更以客戶為中心的組織。

Well, I'm pleased to tell you that the changes I discussed last quarter are already starting to show positive signs. We're seeing growth in revenue and in the number of customers in the Cohort of customers that spend over $100,000 with Disco. We're also seeing greater usage of our Platform overall and we're seeing software dollar net retention improve. Next, I want to discuss the additional actions that we're taking that are in line with our Strategy.

好吧，我很高興地告訴您，我上季度討論的變化已經開始顯示出積極的跡象。我們看到收入以及在 Disco 上花費超過 100,000 美元的客戶群中的客戶數量都在增長。我們也看到我們平台的整體使用率有所提高，並且軟體美元淨保留率有所提高。接下來，我想討論我們正在採取的其他符合我們策略的行動。

First, we're deeply committed to being the best partner to our customers and we made material strides towards that goal in Q3. Recently, we made several strategic hires within our sales Team. We're excited that Lauren Caruso has joined Disco as our SVP and Chief Sales Officer. Lauren was a long time Disco Employee and one of our most effective sales leaders before she left the company about two years ago. Lauren has a history of developing strong performing teams who are capable of successfully scaling and expanding customers at Disco year-over-year. We welcome her as our Chief Sales Officer.

首先，我們堅定地致力於成為客戶的最佳合作夥伴，並且我們在第三季朝著這一目標取得了重大進展。最近，我們在銷售團隊中進行了幾位策略性招募。我們很高興勞倫·卡魯索 (Lauren Caruso) 加入 Disco 擔任我們的高級副總裁兼首席銷售官。大約兩年前，在勞倫離開公司之前，她是迪斯可的長期員工，也是我們最有效率的銷售領導者之一。Lauren 擁有培養表現出色的團隊的歷史，這些團隊能夠逐年成功擴大和擴大 Disco 的客戶。我們歡迎她擔任我們的首席銷售長。

Andrea Popovecz will continue to serve as a senior leader within our sales organization reporting to Lauren and she will focus on leading many of our key sales teams. In addition, we further welcomed two new sales leaders to focus on our largest law firm and corporate customers. They are both seasoned veterans in Sales and legal technology having worked at companies like Epic, Everlaw and LexisNexis.

安德里亞·波波維奇 (Andrea Popovecz) 將繼續擔任我們銷售組織內的高級領導，向勞倫匯報，她將專注於領導我們的許多關鍵銷售團隊。此外，我們也迎來了兩位新的銷售主管，專注於我們最大的律師事務所和企業客戶。他們都是銷售和法律科技領域經驗豐富的資深人士，曾在 Epic、Everlaw 和 LexisNexis 等公司工作。

These key additions are bringing in valuable expertise across the board from deep industry knowledge and sophisticated sales approaches to coaching and mentoring. These changes allow us to drive a more refined enterprise grade sales motion with an up-level talent pool which clearly reflects our strategic go to market shift towards larger customers. Focusing now on customer highlights this quarter, we signed a number of notable customers including several Fortune 500 and other large companies. We're excited about this because for many of these customers, this is the first step on their way to digitally transforming their legal operations and moving to a centralized provider of legal technology.

這些關鍵的補充帶來了全面的寶貴專業知識，從深厚的行業知識和複雜的銷售方法到輔導和指導。這些變化使我們能夠透過高端人才庫推動更精細的企業級銷售活動，這清楚地反映了我們向更大客戶的市場策略轉變。現在重點關注本季的客戶亮點，我們簽署了一些知名客戶，包括多家財富 500 強和其他大公司。我們對此感到興奮，因為對於其中許多客戶來說，這是他們實現法律業務數位轉型並轉向法律科技集中提供者的第一步。

An example of this is a large bank which evaluated several solutions before selecting Disco, they selected just to hold after a rigorous review of our products capabilities and security features and they have committed to a three year Disco hold agreement, earning their trust and positioning ourselves as a strategic partner was a significant achievement. And we're excited about the potential for this partnership to grow. Another customer with who we recently signed a multi-year deal is a leading online food delivery platform.

一個例子是一家大型銀行在選擇Disco 之前評估了多種解決方案，他們在嚴格審查我們的產品功能和安全功能後選擇持有，並承諾簽訂為期三年的Disco 持有協議，贏得他們的信任並定位自己作為策略夥伴是一項重大成就。我們對這種夥伴關係的發展潛力感到興奮。我們最近與之簽署多年協議的另一家客戶是一家領先的線上食品配送平台。

This customer welcomed a new legal team leader who had experience with Disco at their prior firm and wanted to implement Disco at their new organization. They loved the simplicity and intuitive workflow of the Disco platform and implemented our capabilities via a multi-year spend commitment that provides access to our entire platform starting with legal hope which is now being implemented.

該客戶歡迎一位新的法律團隊負責人，該負責人在先前的公司擁有 Disco 經驗，並希望在新組織中實施 Disco。他們喜歡 Disco 平台簡單直觀的工作流程，並透過多年的支出承諾來實現我們的功能，從目前正在實施的法律希望開始提供對我們整個平台的存取。

We continue to see this dynamic where champions of Disco who switch companies or firms implement our platform in the new organization. We're excited about these partnerships and other important wins and the start of what we're confident will be great long-term partnerships.

我們繼續看到這種動態，取代公司或公司的迪斯科冠軍在新組織中實施我們的平台。我們對這些合作關係和其他重要的勝利感到興奮，我們相信這將是良好的長期合作關係的開始。

The traction we're seeing this quarter is in part the result of improved operations across the organization. I'm seeing strong cross departmental collaboration. We're seeing thoughtful comprehensive solutions to our customers challenges, incorporating feedback from multiple departments and leveraging the expertise of our new talent. Product strategy, customer experience, sales and finance are working together in a deeper, more integrated way.

我們本季看到的成長動能部分歸功於整個組織營運的改善。我看到了強而有力的跨部門合作。我們看到了針對客戶挑戰的深思熟慮的綜合解決方案，融合了多個部門的反饋並利用了我們新人才的專業知識。產品策略、客戶體驗、銷售和財務正在以更深入、更整合的方式合作。

We're being proactive with our customers, engaging with them and responding with richer platform wide solutions to draw on sales, product and services teams. This is exactly what we're aiming for. And as a result, we're seeing increased involvement in larger longer-term opportunities.

我們積極主動地與客戶合作，與他們互動，並以更豐富的平台範圍解決方案回應，以吸引銷售、產品和服務團隊。這正是我們的目標。因此，我們看到越來越多的人參與更大的長期機會。

As we mentioned in the last earnings call, we're focusing our resources on customers who we believe will drive the most long-term value for Disco. These are customers with significant annual eDiscovery spend large practice areas and practices legal areas with significant eDiscovery needs.

正如我們在上次財報電話會議中提到的，我們將資源集中在我們認為將為 Disco 帶來最大長期價值的客戶上。這些客戶每年在電子取證方面投入大量資金，並在具有大量電子取證需求的法律領域開展業務。

The actions we're taking now will allow us to grow with existing customers and future customers who fit these criteria. Operationally we've made significant strides including adding two new senior leaders to the team. Susan Garcia has joined us as General Counsel and Chief Compliance Officer; Joe Jacobson has joined us as Senior VP of Operations. Susan comes to us from WebMD, where she served as General Counsel since 2021 overseeing legal strategy, corporate governance, compliance, litigation, corporate transactions and ESG.

我們現在採取的行動將使我們能夠與符合這些標準的現有客戶和未來客戶一起成長。在營運方面，我們取得了重大進展，包括在團隊中增加了兩名新的高階領導。Susan Garcia 加入我們，擔任總法律顧問兼首席合規官；喬·雅各布森 (Joe Jacobson) 加入我們，擔任營運高級副總裁。Susan 任職於 WebMD，自 2021 年起擔任總法律顧問，負責監督法律策略、公司治理、合規、訴訟、公司交易和 ESG。

I'm particularly excited for Susan to help us accelerate deal closures and drive efficiency in our legal processes. She brings deep expertise in optimizing playbooks for contracts which will help further streamline sales and is already well acquainted with Disco having used our platform in the past. We're thrilled to have her on board.

我特別高興蘇珊能夠幫助我們加速交易完成並提高法律流程的效率。她在優化合約手冊方面擁有深厚的專業知識，這將有助於進一步簡化銷售，並且她已經非常熟悉 Disco 過去使用過我們的平台。我們很高興她能加入。

We've also welcomed Joe Jacobson as Senior Vice President of Operations. Joe brings over two decades of experience in business transformation, operations, revenue management and sales enablement within the technology and SaaS sectors. Joe and I worked together for several years at Concur. And most recently, he served as Vice President of revenue strategy operations and transformation at Brex, an AI Powered expense management platform.

我們也歡迎喬·雅各布森 (Joe Jacobson) 擔任營運高級副總裁。Joe 在科技和 SaaS 領域的業務轉型、營運、收入管理和銷售支援方面擁有二十多年的經驗。喬和我在 Concur 共事了幾年。最近，他擔任人工智慧驅動的費用管理平台 Brex 的收入策略營運和轉型副總裁。

At Disco, Joe oversees business operations, revenue operations, business intelligence and go to market operation support and enablement. Joe already hit the ground running, and he's made an impact by helping the company align and execute on key priorities and setting a fast pace for achieving success. This spans all areas of our business from product and engineering to services to finance. But Joe's primary focus right now is to improve our go to market operations.

在 Disco，Joe 負責監督業務營運、收入營運、商業智慧以及市場營運支援和支援。喬已經開始行動，他透過幫助公司調整和執行關鍵優先事項以及為成功設定快速步伐而產生了影響。這涵蓋了我們業務的所有領域，從產品和工程到服務再到金融。但喬現在的首要任務是改善我們的市場運作。

Joe's driving deeper strategic thinking, rigorous prioritization and rapid execution, all of which are helping propel the business forward. Key initiatives such as increasing customer wallet share, refining ideal customer profiles and optimizing our quote to cash process are critical to enhancing our sales and our overall company operations.

喬推動更深入的策略思考、嚴格的優先劃分和快速執行，所有這些都有助於推動業務向前發展。增加客戶錢包份額、完善理想客戶檔案以及優化現金報價流程等關鍵措施對於提高我們的銷售和公司整體營運至關重要。

I'm excited about Joe's efforts because it's going to enable us to be more strategic with where we focus our resources and how we target our customers and will ultimately maximize the return of the effort of our go to market teams. On the product and engineering front we are proud of the rapid progress our teams. Have made in bringing cutting edge generative AI products to market.

我對喬的努力感到興奮，因為它將使我們能夠在集中資源以及如何瞄準客戶方面更具策略性，並最終使我們的市場團隊的努力獲得最大回報。在產品和工程方面，我們為團隊的快速進步感到自豪。在將尖端的生成式人工智慧產品推向市場方面取得了進展。

We believe we currently have a more comprehensive set of capabilities than anyone in the market and feedback from customers is that we're the industry leader. We aim to maintain our leadership position by continuing to build the best and most innovative legal platform in the industry and Richard is here to help us drive that mission. As we look ahead to the rest of Q4 and into 2025 we will focus on delivering products and capabilities within our core eDiscovery platform that offer the highest near-term value to our customers.

我們相信，我們目前擁有比市場上任何人都更全面的能力，而客戶的回饋表明我們是行業領導者。我們的目標是透過繼續打造業內最好、最具創新性的法律平台來維持我們的領導地位，理查德將幫助我們實現這一使命。展望第四季剩餘時間和 2025 年，我們將專注於在核心電子取證平台內提供產品和功能，為客戶提供最高的近期價值。

We will also enhance our city capabilities. This includes a deeper focus on emerging data types, advanced integrations with communications platforms, enhanced search and review capabilities, and improvements in data management, administration and permissions. Our approach will continue to be shaped by collaborating with and listening to our customers and we will also continue to deliver the core platform enhancements that will enable us to move up the chain, the larger customers, larger matters and larger wallet share.

我們也將提升城市能力。這包括更深入地關注新興資料類型、與通訊平台的高級整合、增強的搜尋和審查功能以及資料管理、管理和權限方面的改進。我們將繼續透過與客戶合作並傾聽客戶的意見來塑造我們的方法，我們也將繼續提供核心平台增強功能，這將使我們能夠向鏈條上游發展，擴大客戶、擴大業務並擴大錢包份額。

At the same time, we've leveraged our internal expertise to develop innovative solutions to broader industry challenges. So, there's a balance there. It's a balance between delivering what customers say that they want while reimagining how legal work is done. Richard and his team will be the key driver in this regard.

同時，我們利用內部專業知識開發創新解決方案來應對更廣泛的產業挑戰。所以，那裡有一個平衡。這是在滿足客戶的需求和重新構想法律工作的完成方式之間取得平衡。理查德和他的團隊將成為這方面的關鍵推動者。

With the strategy we aim to release capabilities and solutions that lawyers can adopt quickly make a noticeable impact off the bat and lead to more work done in the Disco platform. Ultimately, our goal is to accelerate revenue in an efficient and sustainable manner and ensure that our product strategy and engineering efforts are aligned with this goal.

透過該策略，我們的目標是發布律師可以快速採用的功能和解決方案，立即產生顯著影響，並導致在 Disco 平台上完成更多工作。最終，我們的目標是以高效和可持續的方式加速收入成長，並確保我們的產品策略和工程工作與這一目標保持一致。

On this call, I discussed many actions that were taken to improve how Disco is selling, building and operating. Many of these activities require some new talent and experience. To support these efforts, we are realigning where we are investing dollars and enhancing the skills that we need at Disco in the future. We assessed our current talent at Disco and made the difficult decision to eliminate a small number of roles while opening positions in other areas.

在這次電話會議上，我討論了為改善 Disco 的銷售、建設和營運方式而採取的許多行動。其中許多活動需要一些新的才能和經驗。為了支持這些努力，我們正在重新調整投資方向，並提高迪斯可未來所需的技能。我們評估了迪斯可現有的人才，並做出了艱難的決定，即取消少數職位，同時在其他領域開設職位。

Many of those affected are not just employees and co-workers but friends. We're appreciative of the hard work and contributions and wish them great success in their next role. In order to ensure that we have the right talent and experience moving forward, we simultaneously opened several new roles in field sales, customer experience, sales enablement, product management and engineering.

許多受影響的人不僅是員工和同事，還有朋友。我們感謝他們的辛勤工作和貢獻，並祝福他們在下一個職位上取得巨大成功。為了確保我們擁有合適的人才和經驗，我們同時在現場銷售、客戶體驗、銷售支援、產品管理和工程領域開設了多個新職位。

We will look to hire seasoned experts with a proven track record of successful execution. This strategic decision was not taken lightly, and the sensitivity of this moment is not lost on me. Saying Goodbye is not easy, especially as culture is very important to me. Culture has been a top priority in every leadership role that I've held and it's especially true here at Disco.

我們將聘請具有成功執行記錄的經驗豐富的專家。這個策略決定並非輕率做出的，我也沒有忽略這一刻的敏感度。說再見並不容易，尤其是文化對我來說非常重要。在我擔任過的每一個領導職務中，文化都是重中之重，在迪斯可尤其如此。

I believe that strong cultures foster healthy workplaces, more creative ideas more productive employees, better outcomes for customers and better performance for investors. In regard to culture, this quarter we rolled out new company values which set the standards for Disco and were created by our employees. These values are think forward, give space and grace, lead with stewardship and step up to the challenge.

我相信，強大的文化可以培養健康的工作場所、更有創意的想法、提高員工的工作效率、為客戶帶來更好的成果、為投資者帶來更好的業績。在文化方面，本季我們推出了新的公司價值觀，為迪斯可設定了標準，並由我們的員工創造。這些價值觀包括前瞻性思考、給予空間和優雅、管理領導並迎接挑戰。

These values now drive our decision-making actions and Performance and we take them seriously. This is an important step in our cultural evolution and I'm confident that the changes we are making will allow us to realize all of them. So, in aggregate, I'm excited about what I've seen throughout Q3 at Disco. We are moving faster as a company collaborating more effectively across the organization and competing for and winning larger deals. I see a revitalized and energized disco team driven by one goal to become the leading legal technology platform in the industry. I'm looking forward to what Q4 and 2025 holds.

這些價值觀現在推動著我們的決策行動和績效，我們認真對待它們。這是我們文化演變的重要一步，我相信我們正在做出的改變將使我們能夠實現所有這些目標。因此，總的來說，我對整個第三季在 Disco 所看到的情況感到興奮。作為一家在整個組織內更有效地協作並競爭並贏得更大交易的公司，我們的行動速度更快。我看到一支充滿活力、充滿活力的迪斯可團隊，他們的目標是成為業界領先的法律科技平台。我很期待第四季和 2025 年的情況。

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

有了這個，我會把它交給麥可。

Thank you, Eric. In Q3, 2024 total revenues were $36.3 million up 4% year-over-year. Software revenues were $30.2 million up 6% year-over-year. September saw an especially strong software usage net inflow. Services revenue were $6.1 million down 7% year-over-year, predominantly driven by review usage. 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.

謝謝你，埃里克。2024 年第三季總營收為 3,630 萬美元，年增 4%。軟體營收為 3,020 萬美元，較去年同期成長 6%。9 月軟體使用淨流入尤其強勁。服務收入為 610 萬美元，年減 7%，主要由評論使用率推動。在討論損益表的其餘部分時，請注意，除非另有說明，所有提及我們的毛利率、營運費用和淨虧損的內容均基於非公認會計原則。

Adjusted EBITDA is also a non-GAAP financial measure. Our gross margin in Q3 was 74%. As we mentioned before, our growth 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. Sales and marketing expense for Q3 was $13.8 million or 38% of revenue compared to 44% of revenue in Q3 of the prior year.

調整後 EBITDA 也是非 GAAP 財務指標。我們第三季的毛利率為 74%。正如我們之前提到的，我們的成長率會根據客戶使用的性質（例如，在我們的平台上攝取和管理的資料量和類型）而隨時間波動。第三季的銷售和行銷費用為 1,380 萬美元，佔營收的 38%，而去年第三季佔營收的 44%。

The year-over-year decline is predominantly driven by a combination of lower total head count and redistribution of our investment within sales and marketing. Research and development expense for Q3 was $11.1 million or 31% of revenue compared to 29% of revenue in Q3 of the prior year. The increase was driven by both domestic and international head count. General and administrative expense in Q3 was $7.7 million or 21% of revenue compared to 19% of revenue in Q3 of the prior year, leadership changes in Q3 2023 reduce G&A expenses in that quarter.

年比下降的主要原因是總人數減少以及我們在銷售和行銷方面的投資重新分配。第三季的研發費用為 1,110 萬美元，佔營收的 31%，而去年第三季則佔營收的 29%。這一增長是由國內和國際員工人數所推動的。第三季的一般和管理費用為770 萬美元，佔收入的21%，而上一年第三季佔收入的19%，2023 年第三季的領導層變動減少了該季度的一般和行政費用。

Operating loss in Q3 was $5.6 million representing an operating margin of negative 15% compared to negative 17% in Q3 of the prior year. Adjusted EBITDA was negative $4.5 million in Q3 representing an adjusted EBITDA margin of negative 12% compared to an adjusted EBITDA margin of negative 13% in Q3 of the prior year.

第三季營運虧損為 560 萬美元，營運利潤率為負 15%，而上年第三季為負 17%。第三季調整後 EBITDA 為負 450 萬美元，調整後 EBITDA 利潤率為負 12%，而上年第三季調整後 EBITDA 利潤率為負 13%。

Net loss in Q3 was $3.9 million or negative 11% of revenue in line with Q3 of the prior year. Net loss per share for Q3 was $0.06 in line with Q3 of the prior year. Turning to the balance sheet and cash flow statement, we ended Q3 with $126.8 million in cash, cash equivalents and short-term investments and no debt. Operating cash flow for the first three quarters of 2024 was negative $10.8 million compared to negative $28.7 million in the same period of the year prior.

第三季淨虧損為 390 萬美元，佔營收的負 11%，與去年第三季持平。第三季每股淨虧損為 0.06 美元，與去年第三季持平。談到資產負債表和現金流量表，第三季結束時，我們擁有 1.268 億美元的現金、現金等價物和短期投資，沒有債務。2024 年前三季的營運現金流量為負 1,080 萬美元，而去年同期為負 2,870 萬美元。

Turning to the outlook for Q4 2024 we're providing total revenue guidance in the range of $35.2 million to $37.2 million and software revenue guidance in the range of $30 million to $31 million. We expect adjusted EBITDA to be in the range of negative $7.6 million to negative $5.6 million. For fiscal year 2024, we anticipate total revenue guidance in the range of $143 million to $145 million. In software revenue guidance in the range of $119.4 million to $120.4 million. We expect adjusted EBITDA to be in the range of negative $22 million to negative $20 million. Now, I'd like to turn the call over to the operator to open up the line for Q&A. Operator?

談到 2024 年第四季的前景，我們提供的總收入指引範圍為 3,520 萬美元至 3,720 萬美元，軟體收入指引範圍為 3,000 萬美元至 3,100 萬美元。我們預計調整後 EBITDA 將在負 760 萬美元至負 560 萬美元之間。對於 2024 財年，我們預計總收入指引範圍為 1.43 億美元至 1.45 億美元。軟體收入指引在 1.194 億美元至 1.204 億美元之間。我們預計調整後 EBITDA 將在負 2,200 萬美元至負 2,000 萬美元之間。現在，我想將電話轉給接線員，以開通問答線。操作員？

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Koji Ikeda, Bank of America. Your line is open.

我們的第一個問題來自美國銀行池田浩司。您的線路已開通。

Yeah. Hey guys, thanks so much for taking the question. I wanted to ask a couple here, maybe the first one on the new Chief Sales Officer. Realizing I think she's coming back to Disco and so thinking about how the company has evolved over the last couple of years and the product itself has evolved over the last couple of years. I'm just trying to think of what sort of further evolution she might drive in the go to market from here.

是的。嘿夥計們，非常感謝您提出問題。我想問這裡的幾個問題，也許是關於新任首席銷售官的第一個問題。意識到我認為她會回到迪斯科，所以思考公司在過去幾年中如何發展以及產品本身在過去幾年中如何發展。我只是想思考她可能會在從這裡進入市場的過程中推動什麼樣的進一步發展。

Yeah. Thanks Koji very much for the question. I am so excited to have Lauren Caruso join us at Disco is our Chief Sales Officer. I mentioned when I got on board that I was going to evaluate our management team and look for opportunities to bring in new talent, and when I decided that we need the new Chief Sales Officer, I put a lot of time and effort to make sure that we defined the criteria very quickly and closely and that we looked at a lot of different candidates.

是的。非常感謝小二的提問。我很高興勞倫·卡魯索 (Lauren Caruso) 加入迪斯科，擔任我們的首席銷售官。我在加入時提到，我將評估我們的管理團隊並尋找引進新人才的機會，當我決定我們需要新的首席銷售官時，我投入了大量的時間和精力來確保我們非常快速、仔細地定義了標準，我們研究了很多不同的候選人。

And so I'm sure you can probably imagine with my background, I have a great network of extremely strong sales leaders and so we spoke with many of them and we also spoke with several other potential sales leaders outside the organization and ultimately determined that Lauren was a perfect fit for us. So, Lauren was one of our top sales leaders at Disco in the past, she's got a very enterprise-oriented mindset. So, she works with some of our biggest customer in the past.

因此，我相信您可以根據我的背景想像，我擁有一個由非常強大的銷售領導者組成的龐大網絡，因此我們與他們中的許多人進行了交談，我們還與組織外的其他幾位潛在的銷售領導者進行了交談，並最終確定勞倫非常適合我們。所以，勞倫過去是迪斯科的頂級銷售領導之一，她有一種非常以企業為導向的心態。因此，她過去曾與我們的一些最大客戶合作。

She's very strategic in her thought process. And she knows eDiscovery and specifically Disco inside and out. So, she knows our products extremely well. She knows our client base extremely well. So, I'm thrilled to have Lauren on board. And Look, I'm still overall responsible for the revenue for this organization. As you know, I've got a lot of go to market experience in my background. Lauren will be reporting directly to me as our Chief Sales Officer.

她的思考過程非常有策略。她對電子取證尤其是迪斯可瞭如指掌。所以，她非常了解我們的產品。她非常了解我們的客戶群。所以，我很高興勞倫加入。看，我仍然全面負責這個組織的收入。如您所知，我有很多進入市場的經驗。勞倫將作為我們的首席銷售官直接向我匯報。

Sales is obviously an extremely important part of our revenue, but it's not the only important part of our revenue. Our head of customer success and services reports directly to me, our head of marketing and demand gen reports directly to me. And so, I'm going to keep a close pulse on the, on the opportunity and make sure that we're doing everything we can to increase our revenue. But I'm thrilled to have Lauren on board as our Chief Sales Officer.

銷售顯然是我們收入中極為重要的一部分，但它並不是我們收入中唯一重要的部分。我們的客戶成功和服務主管直接向我報告，我們的行銷和需求產生主管直接向我報告。因此，我將密切關注機會，並確保我們竭盡全力增加收入。但我很高興勞倫擔任我們的首席銷售長。

Got it. No, thank you for that. And I wanted to ask another question here on the restructuring. Just maybe from a big picture perspective in any way to categorize how big it was, it sounds like there was some in the sales organization that was affected, was that the only organization within Disco that was affected? And are you targeting to end up the full year with lower head count than starting the full year? Thank you, guys.

知道了。不，謝謝你。我想在這裡問另一個關於重組的問題。也許從大局的角度來看，以任何方式對它的規模進行分類，聽起來銷售組織中有些人受到了影響，這是迪斯科內唯一受到影響的組織嗎？您的目標是全年結束時的員工人數少於全年開始時的人數嗎？謝謝你們，夥計們。

You bet Koji. So in terms of the restructuring, first of all, those kind of things are never easy to do, as I'm sure, we had to say goodbye to some people that we care a lot about who helped Disco get to where we are today and contributed significantly. So that part's tough but as I said before, I committed to this organization that when I came on board, I would quickly balance the urgency along with learning the business, developing our strategy and then determining where we needed new talent that's from an organizational structure standpoint, a role standpoint, and then it just a pure talent and experience standpoint.

你賭Koji。因此，就重組而言，首先，這類事情從來都不容易做到，我確信，我們必須告別一些我們非常關心的人，他們幫助迪斯科走到了今天的位置。所以這部分很困難，但正如我之前所說，我對這個組織做出了承諾，當我加入時，我會迅速平衡緊迫性與學習業務、制定我們的策略，然後確定我們在哪裡需要來自組織結構的新人才立場，角色立場，然後是純粹的天賦和經驗立場。

So, I made the decision that we needed to make a change in terms of scope. 31 people were affected. So, 31 people, we let go this week at the same time, we opened up 22 new roles at Disco on the same day. So this is clearly not a cost cutting action, this is all about refocusing our resources, our efforts, our investments where I think we're going to best grow and, what's going to be best for the company moving forward.

因此，我決定我們需要對範圍進行改變。 31人受到影響。所以，31個人，我們這週同時裁掉了，同一天我們在Disco開了22個新職位。因此，這顯然不是一項削減成本的行動，而是將我們的資源、我們的努力、我們的投資重​​新集中在我認為我們將最好地發展的地方，以及對公司前進最有利的地方。

And so, sales was a fairly significant portion of that. Not half, but a reasonably significant portion of that. Most of the people in the sales organization by far were either in our sales development team or in our inside sales team. And then we opened up 10 enterprise regional sales executive roles. So, we're bringing in experienced enterprise oriented sales people.

因此，銷售額佔其中相當大的一部分。不是一半，而是其中相當重要的一部分。到目前為止，銷售組織中的大多數人員要么在我們的銷售開發團隊中，要么在我們的內部銷售團隊中。隨後我們又開設了10個企業區域銷售主管職位。因此，我們正在引進經驗豐富的面向企業的銷售人員。

Got it. Thank you. And just one last question, if I may here, I don't think I heard a customer count metric. You typically do give that any color or if you could get that metric or if we can't any color on if it's higher or lower than where you ended up in the second quarter. Thanks guys. Thanks for taking the questions.

知道了。謝謝。最後一個問題，如果可以的話，我想我沒有聽到客戶計數指標。您通常會給出任何顏色，或者您是否可以獲得該指標，或者我們是否無法給出任何顏色，如果它高於或低於您在第二季度的最終結果。謝謝你們。感謝您提出問題。

Yeah, you bet Koji. So, our customer count at the end of or in Q3 was 1,439 customers, which is relatively flat for the year. It's down 10 quarter-over-quarter as our customer account will fluctuate. The reason I didn't talk about customer account though, is because it's just not the metric that we're focused on. In the past Disco was focused on acquiring customers sort of regardless of how big or small they are.

是的，你打賭Koji。因此，我們在第三季末或第三季的客戶數量為 1,439 名客戶，與今年相對持平。由於我們的客戶帳戶會出現波動，季度環比下降了 10%。我之所以沒有談論客戶帳戶，是因為它不是我們關注的指標。過去，迪斯可專注於獲取客戶，無論客戶規模大小。

Our focus right now is clear, we are focused on acquiring and growing within customers that we believe have a lot of opportunity where we can add value and where we really think they can grow. And for us that is large corporations that are in highly litigious industries. That is large law firms [and law] 200 firms, a large litigation boutiques that have big centralized eDiscovery teams that work in practice areas that generate a lot of eDiscovery work and therefore they have a lot of eDiscovery needs. And so that's where we are putting our focus today and that's really more of the way we're thinking about it.

我們現在的重點很明確，我們專注於獲取和發展客戶，我們相信這些客戶有很多機會，我們可以在這些機會中增加價值，並且我們真正認為他們可以成長。對我們來說，這是訴訟頻繁的行業中的大公司。這是大型律師事務所[和法律] 200 家律師事務所，大型訴訟精品店，擁有大型集中式電子取證團隊，這些團隊在產生大量電子取證工作的實踐領域工作，因此他們有大量電子取證需求。這就是我們今天關注的重點，也是我們思考這個問題的方式。

So, in terms of the good news there is that we're seeing some progress, we had more customers that spend $100,000 per year with us than we did the quarter before we had more revenue from that same exact cohort of customers that spend $100,000 or more per year from us. We've got record usage of our platform. Our dollar net retention for software also went up quarter-over-quarter and overall, our revenue went up. So, those are some of the things that we look at.

因此，就好消息而言，我們看到了一些進展，與上一季度相比，我們每年在我們這裡花費10 萬美元的客戶數量更多，我們從花費10 萬美元或10 萬美元的同一群客戶那裡獲得了更多收入。我們已經記錄了我們平台的使用情況。我們的軟體美元淨留存率也逐季上升，整體而言，我們的收入有所上升。所以，這些是我們關注的一些事情。

Thanks for taking the questions.

感謝您提出問題。

And your next question comes from the line of Brian Essex, JP Morgan. Your line is open.

您的下一個問題來自摩根大通的布萊恩‧艾塞克斯 (Brian Essex)。您的線路已開通。

Hi, good afternoon and thank you for taking the question. I was wondering maybe if to start, if you could talk about Cecilia and what the plans are for that platform, particularly with regard to, accelerating your penetration within customers and monetizing that platform as customers might find a lot of value with it.

你好，下午好，感謝你提出問題。我想知道是否可以開始，您是否可以談談塞西莉亞以及該平台的計劃，特別是在加速您對客戶的滲透以及透過該平台貨幣化方面，因為客戶可能會發現它有很多價值。

Yeah, thanks Brian. I'm very excited about the future of Cecilia AI, our AI platform, I mean, just in general AI has been part of our core eDiscovery platform for more than 10 years. So, we've got great traction around AI. Cecilia, which is our generative AI platform has a lot of potential. Keep in mind that lawyers are not always the fastest industry to adopt new technology, but we've built Cecilia AI with that in mind. So there's a number of things that we've done around the platform to ensure that we get good adoption and the feedback we've gotten so far is really strong.

是的，謝謝布萊恩。我對我們的人工智慧平台 Cecilia AI 的未來感到非常興奮，我的意思是，總的來說，人工智慧已經成為我們核心電子取證平台的一部分已有十多年了。因此，我們對人工智慧有著巨大的吸引力。Cecilia 是我們的生成式人工智慧平台，具有很大的潛力。請記住，律師並不總是採用新技術最快的行業，但我們在建立 Cecilia AI 時就考慮到了這一點。因此，我們圍繞著該平台做了很多事情，以確保我們得到良好的採用，並且迄今為止我們得到的反饋非常強烈。

So for example, we have the most secure platform in the industry, we've got the ability where we tag every single document and explain why we tag every single document when users are writing queries. We provide services along with it to help our customers learn how to write prompts for AI and get the best experience out of that.

例如，我們擁有業內最安全的平台，我們能夠標記每個文檔，並解釋為什麼我們在使用者編寫查詢時標記每個文檔。我們隨之提供服務來幫助我們的客戶學習如何編寫人工智慧提示並從中獲得最佳體驗。

We measure the effectiveness of our solutions by looking at the recall rates and the precision rates and we provide that data to make the results ultimately more defensible. So we've built our platform specifically to help a conservative industry be more likely to adopt our solutions and look the feedback we're getting so far is extremely positive.

我們透過查看召回率和準確率來衡量解決方案的有效性，並提供這些數據以使結果最終更可靠。因此，我們專門建立了我們的平台，以幫助保守的行業更有可能採用我們的解決方案，並且我們迄今為止所獲得的回饋非常積極。

We were with one of the largest law firms in the country in the US last week and they are a big user of the eDiscovery platform of our biggest competitor and they wanted to see our generative AI solution. We showed them Cecilia and they said it was light years ahead of our competitor’s solution. And so, they are now evaluating the idea of using the Cecilia AI platform and along with that, moving some matters over to disco.

上週我們與美國最大的律師事務所之一進行了交流，他們是我們最大競爭對手的電子取證平台的大用戶，他們希望看到我們的生成式人工智慧解決方案。我們向他們展示了 Cecilia，他們說這比我們競爭對手的解決方案領先數光年。因此，他們現在正在評估使用 Cecilia 人工智慧平台的想法，同時將一些事情轉移到迪斯可。

So that's just an example. We certainly have gotten traction. We've acquired customers. We've got many customers, they're starting to use the system, but the reality is still for this year, for the next few quarters, it's not going to be a material effect on our revenue and so, that's kind of where we're at right now.

這只是一個例子。我們當然已經獲得了關注。我們已經獲得了客戶。我們有很多客戶，他們開始使用該系統，但今年的現實情況仍然是，在接下來的幾個季度裡，這不會對我們的收入產生實質影響，所以，這就是我們的情況現在就在。

Got it. That's super helpful, maybe just a quick follow up, I understand you do still have a lot of cash in your balance sheet. [But and you're,] you've kind of rolled up your sleeves here, reorienting the sales force and making some head count changes. But any sense of when you might have line of sight into offering, an operating model or, some, gauge of when we might expect the cash flow break even. Just to kind of get some goalposts around what direction the target model might run in.

知道了。這非常有幫助，也許只是快速跟進，我知道您的資產負債表中仍然有很多現金。 [但是，]你已經捲起了袖子，重新調整了銷售隊伍的方向，並對人員數量進行了一些調整。但任何時候你可能會關注產品、營運模式，或是我們預期現金流何時會收支平衡的衡量標準。只是為了了解目標模型可能運行的方向。

Yeah, Brian, let me tell you the way I think about profitability. First off, our number 1 goal is to accelerate our growth. This is a -- the TAM in this market is billions and billions of dollars. And, our goal is to accelerate our growth and get as much of that time as we can, that in mind if I look at where our cost structure is today, I'm more inclined to shift our focus rather than just continually add cost to our structure.

是的，布萊恩，讓我告訴你我對獲利能力的看法。首先，我們的首要目標是加速成長。這個市場的 TAM 價值數十億美元。而且，我們的目標是加速我們的成長並獲得盡可能多的時間，請記住，如果我看看我們今天的成本結構，我更傾向於轉移我們的重點，而不是不斷增加成本我們的結構。

I believe in next year we will grow our revenue at a faster pace than we did this year so far this year, if you look at how we've performed year-to-date along with what we have guided for Q4, our growth rate will be more than double what it was last year. And look I think we're on the path that we can increase our software growth rate next year even further.

我相信明年我們的收入成長速度將比今年迄今為止更快，如果你看看我們今年迄今為止的表現以及我們對第四季的指導，我們的成長率將比去年增加一倍以上。我認為我們明年可以進一步提高軟體成長率。

I do think our expenses will go up next year, but our expenses will not go up as much as our revenue. So, the reality is this is more about shifting our focus, shifting our resources and our investments than it is adding cost to the model. And ultimately, we're working our way towards sustainable profitability. So, we're making investments in our go to market and our sales enablement, our customer success by shifting funds rather than just adding a lot of expense to our model.

我確實認為明年我們的支出會增加，但我們的支出不會像我們的收入增加那麼多。因此，現實情況是，這更多的是轉移我們的重點、轉移我們的資源和投資，而不是增加模型的成本。最終，我們正在努力實現可持續盈利。因此，我們透過轉移資金而不是僅僅在我們的模型中增加大量費用來投資我們的市場開拓和銷售支援以及客戶成功。

Got it very helpful context. Thank you.

得到了非常有幫助的背景。謝謝。

And your next question comes from the line of Mark Schappel, Loop Capital. Your line is open.

您的下一個問題來自 Loop Capital 的 Mark Schappel。您的線路已開通。

Hi. Thank you for taking my question, Eric, besides the sales heads that were let go during the quarter, I was wondering if you just go into a little greater detail around some of the go to market changes that took place during the September quarter.

你好。感謝您提出我的問題，埃里克，除了本季度被裁掉的銷售主管之外，我想知道您是否能更詳細地介紹一下 9 月份季度發生的一些上市變化。

Yeah, we had already started making some shifts and focused as you Know, to work on to assign more resources to our larger accounts. So from a sales perspective, that means putting experienced sales people on larger accounts that we believe have from what we've modelled, have big eDiscovery wallets and our goal is to go gain more wallet share there.

是的，我們已經開始做出一些轉變，並專注於為我們更大的客戶分配更多資源。因此，從銷售的角度來看，這意味著將經驗豐富的銷售人員放在更大的帳戶上，我們認為這些帳戶從我們的模型來看，擁有大的電子取證錢包，我們的目標是在那裡獲得更多的錢包份額。

We started shifting more of our sales development resources to those same accounts. And from a marketing standpoint, we started to build an account based marketing sort of an integrated marketing model so that we can put more focus on the customers that we think have the most opportunity, both acquiring those customers and growing those customers.

我們開始將更多的銷售開發資源轉移到這些相同的客戶。從行銷的角度來看，我們開始建立一種基於帳戶的行銷，一種整合行銷模式，這樣我們就可以更專注於我們認為最有機會的客戶，既獲取這些客戶又發展這些客戶。

To do that, we needed to add some new talent. So, as I mentioned in my prepared remarks, we've added now three very experienced sales leaders. So, a couple more in addition to Lauren, that are more enterprise oriented and very seasoned leaders within this marketplace. We've added a number of sales people as well in the last quarter. And then we started to add various expertise in our marketing organization as well.

為此，我們需要增加一些新人才。因此，正如我在準備好的演講中所提到的，我們現在增加了三位經驗豐富的銷售領導者。因此，除了勞倫之外，還有更多以企業為導向且經驗豐富的市場領導者。上個季度我們也增加了一些銷售人員。然後我們也開始在我們的行銷組織中增加各種專業知識。

Great. Thank you. And then during your prepared to marks, you noted that you're seeing increased interest involvement and longer-term opportunities and why if you just expand on that a little bit?

偉大的。謝謝。然後在你準備評分的過程中，你注意到你看到了更多的興趣參與和更長期的機會，為什麼如果你稍微擴展一下呢？

Yeah, we're getting invited to the table. So, in this industry, as I mentioned, it's a very large industry and it is a growing industry. We're $140 million approximately revenue company and a multiple billion-dollar industry. So, there's, there's a lot of opportunity for us to go gain more share or more opportunity. And the thing that we need to do is to market ourselves better within our large existing customers.

是的，我們被邀請參加談判桌。所以，正如我所提到的，在這個行業中，這是一個非常大的行業，而且是一個不斷成長的行業。我們是一家營收約 1.4 億美元的公司，也是一個價值數十億美元的產業。因此，我們有很多機會獲得更多份額或更多機會。我們需要做的就是在現有的大客戶中更好地推銷自己。

And so when I'm out speaking with customers, I'm asking them questions about, what we need to do to expand our presence, to do more eDiscovery work and for them to use our platform for more and more of their matters and for larger matters and the feedback that I'm getting overall is that we need to do a better job marketing.

因此，當我出去與客戶交談時，我會問他們一些問題，我們需要做什麼來擴大我們的業務，做更多的電子取證工作，以及讓他們使用我們的平台來處理越來越多的事務和更大的問題和我得到的整體回饋是我們需要做得更好的行銷工作。

We need to do a better job educating our customers about the services that we offer that are so important, for example, to them is there as they're working with larger matters with us and then just the scope of the large matters, we've had hundreds of multiple terabyte matters that we've done a Disco and, some of our customers don't know that. So there's a lot of this is about education and so we're doing, less of a broad based marketing approach and more of a specific, one-to-one, one to many type marketing approach, one to few I should say.

我們需要更好地教育我們的客戶，讓他們了解我們提供的服務非常重要，例如，對他們來說，當他們與我們一起處理更大的事務時，然後只是大事務的範圍，我們已經處理了數百個TB 的問題，我們已經做了迪斯科，但我們的一些客戶並不知道這一點。因此，有很多內容與教育有關，所以我們正在做的，不是廣泛的營銷方法，而是更多的具體的、一對一、一對多類型的營銷方法，我應該說是一對一的營銷方法。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Our next question comes from the line of Ian Black, Needham & Company. Your line is open.

我們的下一個問題來自 Ian Black, Needham & Company。您的線路已開通。

Hi, as you guys move up market, should we expect higher usage of Cecilia AI.

大家好，隨著你們進入市場，我們是否應該期待 Cecilia AI 的使用率會更高。

We're getting a lot of interest from Cecilia AI from our larger customers. If you think about when you've got a very, very large matter, your ability to navigate that matter, very quickly, to be able to research the matter, to be able to ask the right questions when natural language becomes important. And then clearly, larger matters mean larger reviews and our Cecilia Auto Review solution because it's so fast and it can act as if it was 140 person manage review team, can be very, very helpful in this larger matter. So, I think there's a lot of interest among our biggest customers in our Cecilia products. But again, we're still in the relatively early stages and, I want to temper expectations in terms of how fast that part of our business is going to grow.

我們的大客戶對 Cecilia AI 非常感興趣。如果你想一想，當你遇到一個非常非常大的問題時，當自然語言變得重要時，你能夠非常快速地導航該問題，能夠研究該問題，能夠提出正確的問題。顯然，更大的事情意味著更大的評論，而我們的 Cecilia Auto Review 解決方案因為它速度非常快，而且可以像 140 人管理評論團隊一樣，在這個更大的事情上非常非常有幫助。因此，我認為我們的最大客戶對我們的 Cecilia 產品很感興趣。但同樣，我們仍處於相對較早的階段，我想降低對我們這部分業務成長速度的預期。

Thank you.

謝謝。

And there are no further questions at this time. I would now like to turn the call back over to the CEO Eric Friedrichsen.

目前沒有其他問題。現在我想將電話轉回給執行長 Eric Friedrichsen。

Thank you. I appreciate it. And really thank you to everybody for joining us today. We are making strides all the way across the business anywhere from advancing our product capabilities to strengthen our team and we're delivering results that position us for long term success.

謝謝。我很感激。非常感謝大家今天加入我們。從提高我們的產品能力到加強我們的團隊，我們在整個業務的各個方面都取得了長足的進步，我們正在交付的成果使我們能夠取得長期成功。

I'm encouraged by the green shoots that we're starting to see and I'm 100% confident that we have a solid plan for success. Our focus remains on driving innovation, improving execution, and capitalizing on the opportunities that we've got ahead. So, we're excited about the progress. We're excited about what we've done so far and what's coming next. And I look forward to updating you in the quarters to come. Thank you.

我對我們開始看到的萌芽感到鼓舞，我百分之百相信我們有一個堅實的成功計劃。我們的重點仍然是推動創新、提高執行力並利用我們所擁有的機會。因此，我們對進展感到興奮。我們對迄今為止所做的事情以及接下來要做的事情感到興奮。我期待在未來幾季向您通報最新情況。謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。