CS Disco Inc (LAW) 2025 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 2025 conference call. (Operator Instructions) I would now like to hand the conference over to your first speaker today, Head of Investor Relations, Aleksey Lakchakov. Please go ahead.

女士們，先生們，感謝你們的支持，歡迎參加 CS Disco 2025 財年第一季電話會議。（操作員指示）現在，我想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 (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 first quarter of fiscal year 2025. With me on today's call are Eric Friedrichsen, DISCO's Chief Executive Officer; and Michael Lafair, DISCO's Chief Financial Officer.

下午好，感謝您參加今天的電話會議，討論 DISCO 2025 財年第一季的財務業績。今天與我一起參加電話會議的還有 DISCO 執行長 Eric Friedrichsen 和 DISCO 財務長 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, our future capital expenditures, market opportunity, market position, product and go-to-market strategies and growth opportunities, and the benefits of our product offerings and developments in the legal technology industry.

今天的電話會議將包括《1995 年私人證券訴訟改革法》安全港條款所定義的前瞻性陳述，包括但不限於有關我們的財務前景和未來業績、我們未來的資本支出、市場機會、市場地位、產品和上市戰略和增長機會，以及我們的產品供應和法律技術行業發展帶來的好處的陳述。

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

除了我們準備好的發言稿外，我們的收益新聞稿、美國證券交易委員會 (SEC) 文件以及今天電話會議的重播均可在我們的投資者關係網站 ir.csdisco.com 上找到。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 annual report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 20, 2025, and the company's upcoming quarterly report on Form 10-Q for the quarter ended March 31, 2025.

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表現的因素的資訊包含在本公司不時向美國證券交易委員會提交的文件中，包括公司於 2025 年 2 月 20 日向美國證券交易委員會提交的截至 2024 年 12 月 31 日的年度報告中的「風險因素」部分，以及公司即將發布的截至 2025 年 3 月 3 月 3 月 3 月 3 月的報告。

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 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，我們將討論非公認會計準則財務指標。這些非 GAAP 財務指標是依照 GAAP 編製的財務績效指標的補充，而非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 指標相對於最接近的 GAAP 指標的局限性的討論。

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

說完這些，我想把電話轉給艾瑞克。

Good afternoon, everyone. I am pleased to report our first quarter of fiscal 2025 results, and I'm encouraged by the progress and the traction that we're seeing across the business. Software revenue in Q1 was $30.9 million and total revenue in Q1 was $36.7 million, towards the high end of the guidance range. Adjusted EBITDA for Q1 was negative $5.1 million or negative 14%, approximately $1 million above the high end of our guidance range. We finished the quarter with $118.8 million of cash and short-term investments and no debt.

大家下午好。我很高興地報告我們 2025 財年第一季的業績，並且我們對整個業務所取得的進展和發展勢頭感到鼓舞。第一季的軟體收入為 3,090 萬美元，第一季的總收入為 3,670 萬美元，接近指導範圍的高端。第一季調整後的 EBITDA 為負 510 萬美元，即負 14%，比我們預期範圍的高端高出約 100 萬美元。本季結束時，我們擁有 1.188 億美元的現金和短期投資，並且沒有債務。

We ended Q1 with 318 customers who each contributed more than $100,000 in total revenue over the last 12 months, up 8% year-over-year. We continue to see year-over-year growth in the number of customers spending more than $100,000 with us, as well as the total revenue generated from these customers. In all, these customers represent 76% of our revenue. We saw yet another quarter of growth in the revenue from large multi-terabyte matters. We believe this is a meaningful signal for us for a few reasons.

截至第一季度，我們擁有 318 名客戶，每名客戶在過去 12 個月內的總收入貢獻超過 10 萬美元，年增 8%。我們持續看到在我們這裡消費超過 100,000 美元的客戶數量以及從這些客戶產生的總收入逐年增長。整體而言，這些客戶占我們收入的 76%。我們又看到來自大容量多 TB 資料的營收又一個季度的成長。我們相信這對我們來說是一個有意義的信號，原因有幾個。

First, it's an indicator for future revenue as large matters typically remain on the platform for longer. Second, matters tend to expand over subsequent months, which supports further revenue expansion. And third, it reflects the go-to-market changes that we have made that are driving the right interactions with the right customers, resulting in more strategic matters, higher average data per matter and increased overall usage of our platform.

首先，它是未來收入的一個指標，因為大件物品通常會在平台上停留更長時間。其次，接下來幾個月的事態將逐漸擴大，這將支持收入進一步增加。第三，它反映了我們所做的行銷變革，這些變革正在推動與正確的客戶進行正確的互動，從而產生更多策略性事務、更高的每項事務平均數據和提高我們平台的整體使用率。

While it's too soon to call this a trend, we are encouraged by these signals and optimistic that momentum will build in the quarters ahead. We continue to focus on the things we can control, including how we engage customers, and we are seeing early signs that our more focused strategic approach is starting to pay off.

雖然現在稱其為趨勢還為時過早，但我們對這些訊號感到鼓舞，並樂觀地認為未來幾季這種勢頭將會增強。我們繼續關注我們能夠控制的事情，包括我們如何吸引客戶，我們看到早期跡象表明，我們更有針對性的策略方法開始取得成效。

First, I'm going to highlight our focus on client services, changes in our go-to-market function and additions to our product suite. This quarter, we launched our new customer value proposition, With You In Every Case. With You In Every Case captures the essence of how DISCO is shaping the future of litigation. Our industry-leading platform equips legal teams with tools not previously available to the legal world. And when paired with our expert services team, we're enabling customers to tackle the most complex high stake matters with confidence.

首先，我將強調我們對客戶服務的關注、我們的行銷功能的變化以及我們產品套件的增加。本季度，我們推出了新的客戶價值主張「與您同在」。《與您共創每一起案件》抓住了 DISCO 如何塑造訴訟未來的本質。我們業界領先的平台為法律團隊提供了法律界以前沒有的工具。透過與我們的專家服務團隊合作，我們可以幫助客戶充滿信心地解決最複雜的高風險問題。

To be clear, we've always had a strong combination of software and services, but we haven't always been great at communicating our full value proposition to our customers. We are changing that. The essences behind With You In Every Case are embedded in our marketing, sales, products and operations, ensuring that our customers understand the full value of what DISCO can offer them. We want customers to view DISCO not just as a vendor but as a true partner who is scalable, reliable and deeply attuned to the demands of every case. One great example of this partnership is the law firm, Munsch Hardt.

需要明確的是，我們一直擁有強大的軟體和服務組合，但我們並不總是能夠很好地向客戶傳達我們的全部價值主張。我們正在改變這種狀況。「與您攜手共進，共創輝煌」的精髓已融入我們的行銷、銷售、產品和營運之中，確保我們的客戶充分了解 DISCO 所能提供的價值。我們希望客戶不僅將 DISCO 視為供應商，而且將其視為可擴展、可靠且能夠深度適應每種情況需求的真正合作夥伴。這種合作關係的一個很好的例子就是 Munsch Hardt 律師事務所。

In Q1, Munsch renewed a three-year subscription, doubling their commitment compared to their prior contract. They've been with us for years and have consistently expanded both the number of matters and the volume of data they manage on the DISCO platform. This is exactly the kind of outcome that we're striving for through With You In Every Case.

第一季度，Munsch 續簽了三年訂閱協議，與先前的合約相比，其承諾金額增加了一倍。他們與我們合作多年，並不斷擴大他們在 DISCO 平台上管理的事務數量和資料量。這正是我們透過「與您攜手，共創輝煌」所追求的結果。

We earned their trust through the strength of our technology, and we've kept it through close collaboration, deep listening and a relentless focus on delivering value at every stage in their journey. This renewal is the result of strong collaboration between our customer success and sales teams working alongside product and engineering to align on their evolving needs.

我們透過強大的技術贏得了他們的信任，並透過密切合作、深入傾聽以及堅持不懈地專注於在旅程的每個階段提供價值來保持他們的信任。此次更新是我們客戶成功團隊和銷售團隊與產品和工程團隊密切合作以滿足他們不斷變化的需求的結果。

It is a powerful example of how we combine our platform and our people to serve as a true partner in every case and why we're confident in our ability to drive long-term durable customer relationships. Moving to the overall progress we are making within our go-to-market. Last quarter, we discussed our initiatives to enhance talent, to target accounts and to align incentives.

這是一個有力的例子，說明了我們如何將我們的平台和員工結合起來，在每種情況下都成為真正的合作夥伴，以及為什麼我們對建立長期持久的客戶關係的能力充滿信心。我們在進入市場的過程中取得了整體進展。上個季度，我們討論了提升人才、鎖定目標客戶和調整激勵措施的措施。

We made significant progress with each of these initiatives, and the increase in revenue from larger customers and larger matters is a positive indicator that those efforts are beginning to take effect. We are also seeing nice growth in our Cecilia generative AI suite, including Cecilia Q&A and Cecilia Auto Review.

我們在每項措施上都取得了重大進展，來自大客戶和大宗事務的收入增加是一個積極的信號，表明這些努力開始見效。我們也看到 Cecilia 產生 AI 套件（包括 Cecilia Q&A 和 Cecilia Auto Review）取得了良好的成長。

The number of our Cecilia Q&A customers grew 5x from Q1 2024. We are happy with this trajectory and this capability as more customers are leveraging Cecilia Q&A to drive superior outcomes for their customers. With Auto Review, we continue to see strong momentum as well.

我們的 Cecilia Q&A 客戶數量自 2024 年第一季起成長了 5 倍。我們對這項發展軌跡和能力感到滿意，因為越來越多的客戶正在利用 Cecilia Q&A 為他們的客戶帶來卓越的成果。透過自動審查，我們也持續看到強勁的勢頭。

In Q2 of 2024, we announced that Cecilia Auto Review was demonstrating speeds of 3,800 documents per hour over a 24-hour period, which is equivalent to a 140-person review team. Since then, we continue to make big strides on even faster throughput and higher quality results that are potentially game-changing for our industry.

2024 年第二季度，我們宣布 Cecilia Auto Review 在 24 小時內每小時可處理 3,800 份文件，相當於一個 140 人的審查團隊。從那時起，我們繼續在更快的吞吐量和更高品質的結果方面取得長足進步，這可能會改變我們的行業。

Excitement was especially clear at Legalweek in March, where I repeatedly heard how Cecilia and our broader e-discovery capabilities are ahead of the competition. One standout example is a leading Am Law 50 firm. In a government investigation involving close to 3 million documents, this client leveraged Cecilia's Q&A and auto review capabilities to identify key facts and documents well ahead of critical deadlines, enabling them to craft the optimal strategy for their client.

在三月的《法律周刊》上，我反覆聽到人們說 Cecilia 和我們更廣泛的電子發現能力在競爭中處於領先地位，這種興奮之情尤為明顯。一個突出的例子是一家領先的 Am Law 50 律師事務所。在涉及近 300 萬份文件的政府調查中，該客戶利用 Cecilia 的問答和自動審查功能在關鍵截止日期之前確定關鍵事實和文件，從而使他們能夠為客戶制定最佳策略。

Working in close partnership with DISCO, they used Cecilia to conduct a first level responsiveness review and submit a production. The result was fantastic, a 97% recall and 71% precision across nearly 200,000 documents, well within the accepted industry standards, and they delivered at unprecedented speed.

他們與 DISCO 密切合作，利用 Cecilia 進行第一級回應審查並提交產品。結果非常棒，在近 20 萬份文件中，召回率達到 97%，準確率達到 71%，完全符合公認的行業標準，而且交付速度是前所未有的。

It's compelling proof of how our AI and services can elevate legal outcomes. Although Cecilia Auto Review revenue is still a small portion of our total revenue, we are optimistic about the future of this product. I continue to hear from our customers how they love our platform.

這是我們的人工智慧和服務如何提升法律成果的有力證據。儘管Cecilia Auto Review的收入仍占我們總收入的一小部分，但我們對該產品的未來持樂觀態度。我不斷聽到客戶說他們非常喜歡我們的平台。

Specifically, I have been hearing very positive feedback on the power of our AI and core search functionality, the speed of our systems, the intuitive user interface, the security and the rate with which we are releasing high-performing new capabilities. Our customers' passion for DISCO's platform and the continued execution from the DISCO team gives me incredible optimism for the future.

具體來說，我聽到了關於我們人工智慧和核心搜尋功能的強大功能、我們系統的速度、直覺的用戶介面、安全性以及我們發布高效能新功能的速度的非常積極的反饋。我們的客戶對 DISCO 平台的熱情以及 DISCO 團隊的持續執行讓我對未來充滿無比的樂觀。

We are continuing to release capabilities that make life easier for our customers, enhancing both core e-discovery and Cecilia-related workflows. Recent launches include Cecilia Definitions, which enables users to generate on-demand definitions for selected text, accelerating comprehension and analysis, enhanced Cecilia document scoping, improved document navigation, and expanded support for Slack and Apple documents and images along with many others.

我們將繼續發布讓客戶的生活更輕鬆的功能，增強核心電子發現和 Cecilia 相關的工作流程。最近發布的功能包括 Cecilia Definitions，它使用戶能夠為選定的文字產生按需定義，從而加速理解和分析，增強了 Cecilia 文件範圍，改進了文件導航，並擴展了對 Slack 和 Apple 文件和圖像等的支援。

These enhancements are not just about convenience. We believe they are important to driving more large and complex matters to our platform. We are building tools legal professionals can rely on to handle the most demanding cases with speed and precision.

這些改進不僅是為了方便。我們相信，它們對於推動更多大型和複雜的事務進入我們的平台至關重要。我們正在建立法律專業人士可以依賴的工具，以便快速、準確地處理最棘手的案件。

Importantly, many of these innovations were directly informed by customer feedback. They reflect our continued commitment to both industry-leading innovation and to solving real-world challenges for our users, ultimately helping to deepen customer trust and increase wallet share.

重要的是，許多創新都是直接根據客戶回饋得出的。它們體現了我們對行業領先創新和為用戶解決現實挑戰的持續承諾，最終有助於加深客戶信任並增加錢包份額。

From a macro perspective, we have seen some external volatility over the past few months. The US government administration's global tariff announcements sparked financial market instability, and its recent executive orders targeting specific law firms have raised concerns in the legal industry.

從宏觀角度來看，過去幾個月我們看到了一些外部波動。美國政府的全球關稅公告引發了金融市場的不穩定，其最近針對特定律師事務所的行政命令引發了法律行業的擔憂。

I want to touch on these topics. First, regarding the recent legal industry conflict with the current administration, we stand firmly behind our customers and remain steady to support them however they need, when they need. Based on our review, we currently believe we have negligible exposure from these events. Second, in the context of broader macroeconomic concerns, we believe DISCO is well positioned to weather a potential economic downturn. Our industry is unique in that it can experience both headwinds and tailwinds during times of uncertainty.

我想談一下這些話題。首先，關於最近法律產業與現任政府的衝突，我們堅定地支持我們的客戶，並在他們需要的時候以任何方式為他們提供穩定支援。根據我們的審查，我們目前認為這些事件對我們造成的影響微乎其微。其次，在更廣泛的宏觀經濟擔憂背景下，我們認為 DISCO 已做好準備，抵禦潛在的經濟衰退。我們的產業是獨一無二的，因為在不確定的時期，它會同時經歷逆風和順風。

Historically, economic slowdowns have led to increases in litigation across several key areas where we have strengths, including bankruptcy, securities litigation, contract enforcement, insurance coverage and regulatory investigations. While we believe we're in a strong position today, the strategic initiatives that we are driving with our existing customers to ensure that they are working with us on their large matters inherently helps us mitigate downturn risk even further.

從歷史上看，經濟放緩導致我們具有優勢的幾個關鍵領域的訴訟增加，包括破產、證券訴訟、合約執行、保險範圍和監管調查。雖然我們相信我們目前處於強勢地位，但我們與現有客戶共同推動的策略性舉措，確保他們在重大事務上與我們合作，本質上有助於我們進一步降低經濟衰退風險。

While the exact impact of the potential recession is uncertain, we remain optimistic that DISCO's platform, which is designed to reduce costs, increase efficiency and drive better outcomes, will continue to deliver strong value to our customers when it matters most. In summary, we're pleased with the progress we made in Q1, from continued revenue growth and improving customer engagement to continued innovation across our platform and AI capabilities. I'm excited for the rest of 2025 and beyond.

雖然潛在經濟衰退的確切影響尚不確定，但我們仍然樂觀地認為，DISCO 的平台旨在降低成本、提高效率和推動更好的結果，將在最重要的時候繼續為我們的客戶提供強大的價值。總而言之，我們對第一季的進展感到滿意，從持續的收入成長和提高客戶參與度到我們平台和人工智慧能力的持續創新。我對 2025 年剩餘時間及以後的事情感到興奮。

I want to thank our customers, partners and DISCO employees for their continued trust and dedication. With that, I'll turn it over to Michael to walk through our financials in more detail. Michael?

我要感謝我們的客戶、合作夥伴和 DISCO 員工一直以來的信任和奉獻。接下來，我將把主題交給邁克爾，讓他更詳細地介紹我們的財務狀況。麥可？

Thank you, Eric. In Q1 2025, total revenues were $36.7 million, up 3% year-over-year. Software revenues were $30.9 million, up 3% year-over-year. Services revenues, which include DISCO Managed Review and professional services, were $5.8 million, up 2% year-over-year. 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。2025 年第一季度，總營收為 3,670 萬美元，年增 3%。軟體營收為 3,090 萬美元，較去年同期成長 3%。服務收入（包括 DISCO 管理審查和專業服務）為 580 萬美元，年增 2%。在討論損益表的其餘部分時，請注意，除非另有說明，所有對我們的毛利率、營業費用和淨虧損的引用均基於非 GAAP 基礎。

Adjusted EBITDA is also a non-GAAP financial measure. Our gross margin in Q1 was 75%. As we mentioned before, our gross margins fluctuate from period to period based on the nature of our customers' usage, for example, the amount and types of data ingested and managed on our platform. Sales and marketing expense for Q1 was $13.2 million or 36% of revenue compared to 41% of revenue in Q1 of the prior year. The year-over-year decline is predominantly due to headcount changes.

調整後的 EBITDA 也是非 GAAP 財務指標。我們第一季的毛利率為75%。正如我們之前提到的，我們的毛利率會根據客戶的使用性質而隨時間波動，例如，我們平台上取得和管理的資料量和類型。第一季的銷售和行銷費用為 1,320 萬美元，佔營收的 36%，而去年同期為 41%。年比下降主要是由於員工人數變化所致。

Research and development expense for Q1 was $12.2 million or 33% of revenue compared to 28% of revenue in Q1 of the prior year. This increase was primarily driven by an increase in research and development personnel. General and administrative expense in Q1 was $8.4 million or 23% of revenue compared to 25% of revenue in Q1 of the prior year. General and administrative expenses were relatively flat year-over-year. Operating loss in Q1 was $6.2 million, representing an operating margin of negative 17% compared to negative 18% in Q1 of the prior year.

第一季的研發費用為 1,220 萬美元，佔營收的 33%，而去年同期為 28%。這一增長主要得益於研發人員的增加。第一季的一般及行政開支為 840 萬美元，佔營收的 23%，而去年同期該數字為 25%。一般及行政開支與去年同期相比基本持平。第一季的營業虧損為 620 萬美元，營業利潤率為負 17%，去年同期為負 18%。

Adjusted EBITDA was negative $5.1 million in Q1, representing an adjusted EBITDA margin of negative 14% compared to an adjusted EBITDA margin of negative 15% in Q1 of the prior year. Net loss in Q1 was $4.9 million or negative 14% of revenue compared to a net loss of $4.7 million or negative 13% of revenue in Q1 of the prior year. Net loss per share for Q1 was $0.08, flat compared to Q1 of the prior year. Turning to the balance sheet and cash flow statement. We ended Q1 with $118.8 million in cash and short-term investments and no debt.

第一季調整後 EBITDA 為負 510 萬美元，調整後 EBITDA 利潤率為負 14%，而去年同期調整後 EBITDA 利潤率為負 15%。第一季淨虧損為 490 萬美元，佔營收的負 14%，而去年同期第一季淨虧損為 470 萬美元，佔營收的負 13%。第一季每股淨虧損為 0.08 美元，與去年同期持平。轉向資產負債表和現金流量表。我們第一季結束時擁有 1.188 億美元現金和短期投資，並且沒有債務。

Operating cash flow in Q1 was negative $10.5 million compared to negative $7.3 million in Q1 of the prior year. Turning to the outlook. For Q2 2025, we are providing total revenue guidance in the range of $36.5 million to $38.5 million and software revenue guidance in the range of $31.25 million to $32.25 million.

第一季的經營現金流為負 1,050 萬美元，而去年同期為負 730 萬美元。轉向展望。對於 2025 年第二季度，我們預計總收入在 3,650 萬美元至 3,850 萬美元之間，軟體收入預計在 3,125 萬美元至 3,225 萬美元之間。

We expect adjusted EBITDA to be in the range of negative $5.5 million to negative $3.5 million. For fiscal year 2025, we are providing total revenue guidance in the range of $146 million to $158 million and software revenue guidance in the range of $125.5 million to $131.5 million.

我們預計調整後的 EBITDA 將在負 550 萬美元至負 350 萬美元之間。對於 2025 財年，我們預計總營收在 1.46 億美元至 1.58 億美元之間，軟體收入預計在 1.255 億美元至 1.315 億美元之間。

We expect adjusted EBITDA to be in the range of negative $18 million to negative $15 million. This represents an increase in our fiscal year 2025 software revenue, total revenue and adjusted EBITDA outlook from what we guided last quarter. Now, I'd like to turn the call over to the operator to open up the line for Q&A. Operator?

我們預計調整後的 EBITDA 將在負 1800 萬美元至負 1500 萬美元之間。這意味著我們 2025 財年的軟體收入、總收入和調整後的 EBITDA 前景將比我們上個季度預期增加。現在，我想將電話轉給接線員，開通問答熱線。操作員？

David Hynes, Canaccord Genuity.

Canaccord Genuity 的 David Hynes。

So Eric, it's been a little over a year since you took the reins as CEO at DISCO. I can appreciate the first 12 to 18 months are about getting internal ops where you want them. Obviously, a lot of time has been spent on better aligning the go-to-market motion towards those higher-value accounts that you referenced. What's the plan for the next 12 to 18 months? What are you focused on to drive faster growth in the business?

艾瑞克，你擔任 DISCO 執行長已經一年多了。我可以理解，最初的 12 到 18 個月是為了實現你想要的內部營運。顯然，我們花費了大量時間來更好地調整市場進入策略，以適應您提到的那些高價值帳戶。未來 12 到 18 個月的計畫是什麼？您關注哪些方面來推動業務更快成長？

Yes. Thanks, David. It's been a year. I just celebrated my one-year anniversary last week, and I got to tell you, it's just flown by. When I came to DISCO, I had a thesis that there was a tremendous opportunity for us to accelerate our growth and to get to sustainable profitability.

是的。謝謝，大衛。已經一年了。我上週剛慶祝了我的一周年紀念日，我得告訴你，時間過得真快。當我來到 DISCO 時，我有一個論點：我們有巨大的機會加速我們的成長並實現永續獲利。

It started based on the fact that I knew we had a great set of products, a set of raving fan customers, and a really passionate and talented employee base. But it also was clear that there were some problems that we needed to tackle. And these were problems that I felt like I could really help with because I tackled them in the past. That was enhancing our culture, improving our operational effectiveness and revamping our go-to-market. And so we've made incredible strides so far.

一切都始於這樣一個事實：我知道我們擁有一系列出色的產品、一群狂熱的粉絲客戶以及一群真正充滿熱情和才華的員工。但同樣明顯的是，我們需要解決一些問題。我感覺我真的能夠幫助解決這些問題，因為我過去曾解決過這些問題。這增強了我們的文化，提高了我們的營運效率並改善了我們的行銷方式。到目前為止我們已經取得了令人難以置信的進步。

We've got the best employee engagement scores in the history of the company. We initiated really fundamental changes to how we measure and operate the business. And we rolled out critical changes to our go-to-market, as you mentioned, aligning the majority of our resources to our best accounts, getting them to focus on increasing our wallet share within those accounts, building out our customer success teams, realigning the roles for our salespeople and our customer success people, and changing the comp plan for our salespeople to really incentivize them to sell so that we could have a much more deliberate approach to helping our customers with those strategic and larger matters. And we started to see the green shoots from that, as we mentioned some of them in our prepared remarks. But the reality is, we're just getting started.

我們獲得了公司歷史上最好的員工敬業度得分。我們對衡量和經營業務的方式發起了真正根本性的變革。正如您所說，我們對行銷進行了重大變革，將大部分資源分配給我們最好的客戶，讓他們專注於增加我們在這些客戶中的錢包份額，建立我們的客戶成功團隊，重新調整我們的銷售人員和客戶成功人員的角色，並改變銷售人員的補償計劃，以真正激勵他們銷售，以便我們能夠採取更加慎重的方式幫助我們的客戶解決這些戰略和更大的問題。我們開始看到一些積極的跡象，正如我們在準備好的演講中提到的那樣。但事實上，我們才剛開始。

Most of the things that we -- that I mentioned that we have implemented, either we implemented a couple of quarters ago or many of them we implemented in January of this year. And right now, it's about executing on our strategy. I'm confident that we've got incredible opportunity because we've got the right strategy. We're all aligned on that strategy. We've got fantastic people, great products, and we've got people who can see the future and they want to be part of it.

我提到的我們已經實施的大部分措施要么是在幾個季度前實施的，要么是在今年 1 月實施的。現在，我們要執行我們的策略。我相信我們擁有難以置信的機會，因為我們擁有正確的策略。我們都同意這項戰略。我們擁有出色的人才、優質的產品，我們擁有能夠預見未來並希望成為未來一部分的人。

And so right now, it's about execution. We need to stay on point. We have hard work ahead of us, but we need to stay on point. We need to stay focused, and we have to execute at a high level on the strategy that we've already initiated. So I'm more excited about year two than about year one, but year one has been great.

所以現在，關鍵在於執行。我們需要保持專注。我們面前還有艱苦的工作要做，但我們必須堅持下去。我們需要保持專注，並且必須高水準地執行我們已經啟動的策略。因此，我對第二年比第一年更興奮，但第一年已經很棒了。

Good. Okay. And then, I want to ask about the new tagline, right? I mean, sometimes these things are marketing collateral, but the With You In Every Case, right, and the promotion of full DISCO capabilities, it was unclear to me like is that a nod towards wrapping more services around the software? Or what exactly are you trying to accomplish with that kind of positioning of the business?

好的。好的。然後想問一下新的標語，對嗎？我的意思是，有時這些東西是行銷附屬品，但“與您同在，在任何情況下”，對吧，以及全面推廣 DISCO 功能，我不清楚這是否是在暗示在軟體周圍提供更多服務？或是您透過這種業務定位到底想要實現什麼目標？

Yes. When I -- I think you probably know, I've met with, gosh, it's almost close to 100 customers now face-to-face over the last year. And it's remarkable how consistent I heard from them that they love our products. And when they would start digging in with them with the types of matters that they use our products for, in some of the cases, they use our products for all of their matters. But in other cases, they really think of DISCO as a self-service solution.

是的。當我——我想你可能知道，天哪，在過去的一年裡，我已經與近 100 位客戶進行了面對面的會面。令人驚訝的是，他們一致表示喜歡我們的產品。當他們開始深入研究使用我們產品所處理的問題類型時，在某些情況下，他們會使用我們的產品來處理所有問題。但在其他情況下，他們確實將 DISCO 視為自助服務解決方案。

We're so easy to use. We're so fast. Attorneys can get in and use the system themselves. But for some of their larger, more strategic matters, the attorneys aren't going to get in the system every single day. They're going to lean on their -- either their internal e-discovery teams or they're going to learn on -- lean on services to help them, whether it's ingesting their data or managing the project throughout.

我們非常容易使用。我們太快了。律師可以自行進入並使用該系統。但對於一些規模較大、更具策略性的事務，律師不會每天都進入系統。他們將依靠他們的 - 無論是他們的內部電子發現團隊還是他們將學習 - 依靠服務來幫助他們，無論是吸收他們的數據還是管理整個項目。

And so, a strength of ours is the fact that we're so easy to use. We're fast. We can be self-service. But sometimes they want more than that. And we've got great services.

所以，我們的優勢就在於我們非常容易使用。我們很快。我們可以自助服務。但有時他們想要的不只這些。我們提供優質的服務。

We always have, or we at least have for the last few years, but we haven't always promoted them. And so, what we need to make sure our customers know is that we're with them in every case. If they have a matter that is self-service, they want to use the self-service, that's fine. If they've got a large matter where they want our help, we can absolutely help them with that. In many of those cases, they're going to leverage our services to help them, let's say, ingest the data or manage the case.

我們一直都有，或至少過去幾年都有，但我們並不總是推廣它們。因此，我們需要確保我們的客戶知道，在任何情況下我們都會支持他們。如果他們有需要自助處理的事務，他們想使用自助服務，那很好。如果他們有大事需要我們的幫助，我們絕對可以幫助他們。在許多情況下，他們會利用我們的服務來幫助他們，比如說，取得數據或管理案件。

But an attorney could wake up in the middle of the night and have a theory about a case that they want to test, and they can go directly into DISCO themselves. And in natural language, use DISCO -- use Cecilia Q&A to ask a natural language question to test the theory behind their case. And so really, what we're trying to get through with the customer value proposition of With You In Every Case is that we've got the best of both worlds. We've got an integrated solution with services and product together that can help them in any case, no matter how complex it is.

但是律師可能會在半夜醒來並對他們想要測試的案件有一個理論，他們可以直接進入 DISCO。在自然語言中，使用 DISCO——使用 Cecilia Q&A 提出自然語言問題來測試他們案例背後的理論。所以，實際上，我們試圖透過「在任何情況下與您同在」的客戶價值主張來實現兩全其美的目標。我們擁有一個整合服務和產品的綜合解決方案，無論情況多麼複雜，都可以為他們提供幫助。

Yes, makes sense. Nice to see full year estimates moving higher off of Q1. I don't think we've seen that in a couple of years. So good luck.

是的，有道理。很高興看到全年預期較第一季有所上升。我認為我們已經有好幾年沒有看到這種情況了。祝你好運。

Mark Schappel, Loop Capital Markets.

馬克‧沙佩爾 (Mark Schappel)，Loop 資本市場。

Eric, a question for you. I appreciate your commentary on what you're seeing in the broader macro environment. And in your prepared remarks, you mentioned that DISCO is well prepared to weather an economic downturn. Could you just provide some additional details on maybe some of the expense levers that you could employ or bring to bear to reduce operating losses if we do dip into an economic slowdown?

艾瑞克，問你一個問題。我很欣賞您對更廣泛的宏觀環境所見所聞的評論。在您的準備好的發言中，您提到 DISCO 已做好充分準備來應對經濟衰退。如果我們真的陷入經濟放緩，您能否提供一些額外的細節，說明您可以採用或利用哪些費用槓桿來減少營運損失？

Sure. I'll get started, and Michael, feel free to jump in here as well. I mean, the first thing I would say regarding a potential economic downturn here, historically, litigation has done pretty well in economic downturns. In fact, there could be some headwinds, but oftentimes, there's also tailwinds that help increase the amount of litigation. So there's potential this could create some additional opportunity for us.

當然。我先開始了，邁克爾，你也可以加入。我的意思是，關於這裡可能出現的經濟衰退，我首先要說的是，從歷史上看，訴訟在經濟衰退時期表現相當不錯。事實上，可能會有一些阻力，但很多時候，也會有一些順風，有助於增加訴訟的數量。因此，這有可能為我們創造一些額外的機會。

Now, while we don't think we have too much risk there, we obviously are always looking at our business and making sure that we're doing everything we can to mitigate against that risk. Fortunately, the strategy that we have to work with our clients on their most critical matters, the ones that also happen to be larger, we can tailor to ensure that we're working on the matters that are less potentially impacted by a negative economy.

現在，雖然我們認為我們面臨的風險並不大，但我們顯然一直在關注我們的業務，並確保我們盡一切努力降低風險。幸運的是，我們必須與客戶合作解決他們最關鍵的問題，這些問題恰好也是更大的問題，我們可以量身定制策略，以確保我們處理的問題受負面經濟的影響較小。

And so, from a revenue standpoint, we continue to make sure that we're focused on our strategy around going after the most strategic largest matters in the correct practice areas. From a cost perspective, look, I think the way to think about it is -- and I said last quarter that we intend to be EBITDA -- adjusted EBITDA breakeven in Q4 of 2026, and that still continues to be the case. We're making investments right now to ensure that we're taking advantage of the opportunity ahead of us.

因此，從收入的角度來看，我們將繼續確保我們專注於我們的策略，即在正確的實踐領域中追求最具戰略意義的最大事務。從成本角度來看，我認為思考這個問題的方式是——我上個季度說過，我們打算在 2026 年第四季實現 EBITDA 調整後盈虧平衡，而且這種情況仍然會持續下去。我們現在正在進行投資，以確保我們能夠抓住眼前的機會。

This is a big market. It's a growing market. I think DISCO, over time, has the opportunity to be a 20%-plus grower. But there are certain things that we need to do in this business that are fundamental. I mentioned some of them already.

這是一個很大的市場。這是一個不斷成長的市場。我認為，隨著時間的推移，DISCO 有機會實現 20% 以上的成長。但在這個行業中我們需要做一些基本的事情。我已經提到過其中一些。

We needed to create a sales enablement program. We had no sales enablement people. We needed to create a new customer success team because we had a very, very small customer success team so that we could free up our salespeople to actually go sell and grow the business. We have a quote-to-cash project that we have to complete to help grease the skids and make us much more efficient. And we've rolled out a very targeted account-based marketing approach.

我們需要建立一個銷售支援計劃。我們沒有銷售支援人員。我們需要創建一個新的客戶成功團隊，因為我們的客戶成功團隊非常非常小，這樣我們就可以釋放我們的銷售人員去實際銷售和發展業務。我們有一個報價到現金的項目，我們必須完成它來幫助我們順利運作並提高效率。我們推出了一種非常有針對性的基於帳戶的行銷方法。

So some of those things require investment, and that's investment that we're making right now. If we thought it was appropriate for us to reduce costs or to be able to generate more EBITDA sooner, it's possible that we could do that. I just want to make sure that we do that in a way that's responsible, then make sure that we're not missing out on the real opportunity ahead of us, which is to accelerate our growth and to not just get to profitability but to get to sustainable profitability.

因此，其中一些事情需要投資，而這正是我們現在正在進行的投資。如果我們認為降低成本或能夠更快產生更多的 EBITDA 是合適的，我們有可能這樣做。我只是想確保我們以負責任的方式做到這一點，然後確保我們不會錯過擺在我們面前的真正機會，即加速我們的成長，不僅要實現盈利，而且要實現可持續盈利。

Great. And then, as a follow-up, with respect to your rebuild go-to-market engine, I was wondering if you could just comment a little bit on how new customers generally come to DISCO. Is it through in-person meetings or events? Or is digital marketing playing a bigger role?

偉大的。然後，作為後續問題，關於您重建的上市引擎，我想知道您是否可以稍微評論一下新客戶通常如何來到 DISCO。是透過面對面的會議或活動嗎？或者數位行銷正在發揮更大的作用？

Yes. So new customer acquisition comes in a variety of different ways. Right now, the vast majority of our marketing has shifted to more of an account-based marketing approach. It's a combination of events. There is some digital aspect to it.

是的。因此，獲取新客戶的方式多種多樣。目前，我們的絕大部分行銷已經轉向以帳戶為基礎的行銷方式。這是一系列事件的組合。它有一些數位化的方面。

There's a lot of thought leadership associated with it. There's certainly regional activities that we do that tend to be around thought leadership. There are certain events that we go to like Legalweek in New York in March. We were actually -- many of our [team was] at CLOC this week, which is the legal operations conference. And then, there's digital things that we do as well.

它與很多思想領導有關。我們所進行的區域活動當然往往與思想領導有關。我們會參加一些活動，像是三月在紐約舉辦的《法律週刊》。事實上，我們團隊中的許多人本週都參加了 CLOC，即法律運營會議。然後，我們也做一些數位化的事情。

And we have a sales development team as well. But as you know, the vast majority of our focus right now is not on just acquiring new customers. It's expanding the relationship with our existing customers. So we've got many customers that spend $100,000 plus with us, or even $1 million plus with us. And we only have, in some cases, 10% to 15% of their wallet share.

我們還有一個銷售開發團隊。但正如您所知，我們目前的重點不僅僅是獲取新客戶。它正在擴大我們與現有客戶的關係。因此，我們有許多客戶在我們這裡消費 10 萬美元以上，甚至 100 萬美元以上。在某些情況下，我們只佔有他們錢包份額的 10% 到 15%。

And so, by doubling down on those customers to make sure we're working on their larger and more strategic matters, it gives us the opportunity to grow that wallet share pretty significantly. And so we're still acquiring customers. We're making sure the acquirers -- customers that we're acquiring fit within our ideal customer profile. So we're putting energy there. But we've put a lot of resources towards expanding our opportunity within our existing customer base.

因此，透過加倍投入這些客戶，確保我們致力於處理他們更大、更具策略性的問題，這使我們有機會大幅增加錢包份額。因此我們仍在招募客戶。我們要確保收購方－我們所收購的客戶符合我們的理想客戶形象。所以我們把精力投入那裡。但我們投入了大量資源來擴大現有客戶群中的機會。

(Operator Instructions) And there are no further questions at this time. I will now turn the call back over to CEO, Eric Friedrichsen, for closing remarks.

（操作員指示）目前沒有其他問題。現在我將把電話轉回給執行長 Eric Friedrichsen，請他作最後發言。

Thank you, and thanks, everyone, for joining us today. The DISCO team is making really good progress, and I am excited about where we're trending. I'm excited that we're able to increase our full year guidance this quarter. I'm incredibly proud of my amazing DISCO teammates. And I'm optimistic that the initiatives that we're undertaking right now will be a long-term driver for our performance.

謝謝大家今天加入我們。DISCO 團隊正在取得非常好的進展，我對我們的發展趨勢感到非常興奮。我很高興我們能夠在本季提高全年業績預期。我為我出色的 DISCO 隊友感到無比自豪。我樂觀地認為，我們現在採取的舉措將成為我們業績的長期動力。

Being a more customer-focused organization, improving sales execution and driving product innovation will be key to drive shareholder value. We're excited about what we've (technical difficulty)

作為一個更以客戶為中心的組織，提高銷售執行力和推動產品創新將成為提升股東價值的關鍵。我們對我們所取得的成果感到興奮（技術難度）

Portions of this transcript marked (technical difficulty) indicate audio problems. The missing text will be supplied if a replay becomes available.

本記錄中標記為（技術難題）的部分錶示有音訊問題。如果有重播，將會提供缺少的文字。