CS Disco Inc (LAW) 2025 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to CS Disco's 3rd quarter of fiscal year 2025 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 2025 財年第三季電話會議。（操作說明）

I would now like to turn the call over to your first speaker today, Head of Investor Relations, Aleksey Lakchakov. Alexei, Please Go ahead.

現在，我謹將電話轉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。阿列克謝，請繼續。

Good afternoon and thank you for joining us on today's conference call to discuss the financial results for Disco's 3rd quarter of fiscal year 2025.

下午好，感謝各位參加今天的電話會議，共同討論 Disco 公司 2025 財年第三季的財務表現。

With me on today's call are Eric Friedrichsen, Disco's Chief Executive Officer; Michael Lafair, Disco's Chief Financial Officer, and Richard Crone, Disco's Chief Product Technology and Strategy Officer.

今天和我一起參加電話會議的有：Disco 執行長 Eric Friedrichsen；Disco 財務長 Michael Lafair；以及 Disco 首席產品技術和策略長 Richard Crone。

Today's call will include forward-looking statements within the meaning of the Safe harbor Provisions of the Private Securities Litigation Reform Act of 1,995, including but not limited to statements regarding our financial outlook and future performance, our future capital expenditures, market opportunity, market position, products and go to work 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含 1995 年《私人證券訴訟改革法案》安全港條款所指的前瞻性陳述，包括但不限於有關我們財務展望和未來業績、未來資本支出、市場機會、市場地位、產品和業務拓展策略以及成長機會的陳述，以及我們在法律科技產業提供的產品和服務所帶來的益處。

In addition to our preparing remarks. Our earnings press release, SEC filings, and a replay of today's call can be done on our Investor Relations website at I.csdisco.com.

除了我們準備的發言稿之外。我們的獲利新聞稿、向美國證券交易委員會提交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 I.csdisco.com 上找到。

Forward-looking statements involve known and unknown risks and uncertainty that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. Forward-looking statements represent our management's beliefs and assumptions only as up to date.

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內容有重大差異。前瞻性陳述僅代表我們管理階層截至目前為止的看法和假設。

Information on factors that could affect the company's financial results is included in its filings with the SEC from time to time, including the section titled Risk Factors in the company's annual report Form 10K for the year ending December 31, 2024, follow the SEC on February 20, 2025, and the company's upcoming quarterly report on Form 10 for the quarter ended September 30, 2025. In addition, during today's call, we will discuss non-GAAP financial measures.

有關可能影響公司財務表現的因素的資訊會不時地包含在公司向美國證券交易委員會提交的文件中，包括公司截至 2024 年 12 月 31 日止年度的年度報告 10-K 表格中的「風險因素」部分（將於 2025 年 2 月 20 日提交給美國證券交易委員會截至 20 日的 20125 年 20125 年 20125 年 20125 年 2025 年的季度報告表格。此外，在今天的電話會議中，我們將討論非GAAP財務指標。

These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP, reconciliation between GAAP and non-GAAP financial measures, and a discussion of the limitations of using non-GAAP measures versus our closest GAAP equivalent is available in earnings relief.

這些非公認會計準則財務指標是對依照公認會計準則編製的財務績效指標的補充，而不是替代或優於這些指標。有關公認會計準則和非公認會計準則財務指標之間的調節以及使用非公認會計準則指標相對於我們最接近的公認會計準則等效指標的局限性的討論，請參閱盈利救濟部分。

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

這樣一來，我就得把電話轉給艾瑞克了。

Good afternoon, everyone. I am delighted to be here with you all today to report on another quarter of accelerated revenue growth and operational execution for Disco.

大家下午好。今天我很高興能和大家一起向大家報告Disco公司又一個季度加速的營收成長和營運執行。

Software revenue in Q3 was $35.2 million up 17% year over year, while total revenue in Q3 was $40.9 million up 13% year over year. Adjusted EBITDA for Q3 was negative $297,000 representing an adjusted EBITA margin of negative 1%, which is a $4.2 million dollar improvement over Q3 of 2024. Our results include $1.3 million of revenue related to a matter that was contingent on a successful outcome of the case.

第三季軟體營收為 3,520 萬美元，年增 17%；第三季總營收為 4,090 萬美元，年增 13%。第三季調整後 EBITDA 為負 297,000 美元，調整後 EBITA 利潤率為負 1%，比 2024 年第三季改善了 420 萬美元。我們的業績包括與案件成功判決相關的 130 萬美元收入。

I will speak more to this later, but even without this bump, I am pleased to share that we exceeded the high end of our guidance range for software revenue, total revenue, and adjusted EBIT. We finished the quarter with $113.5 million of cash and short-term investments and no debt.

我稍後會對此做更多說明，但即使沒有這次增長，我也很高興地告訴大家，我們的軟體收入、總收入和調整後息稅前利潤均超過了預期範圍的上限。本季末，我們擁有1.135億美元的現金和短期投資，並且沒有債務。

We ended Q3 with 326 customers who each contributed more than $100,000 in total revenue over the last 12 months. The proportion of revenue attributable to these customers is 76%. We're extremely excited about our performance this quarter. The growth acceleration coupled with our improved operational execution is a testament to our larger strategy.

第三季末，我們共有 326 位客戶，每位客戶在過去 12 個月中貢獻的總收入均超過 10 萬美元。這些客戶貢獻的收入比例為 76%。我們對本季的業績感到非常興奮。成長加速以及營運執行力的提升，證明了我們更宏大的策略是正確的。

Last quarter I discussed our focus of the growth of large multi-terabyte matters, and we've seen continued positive trends this quarter in that area. The usage patterns in our business have continued to give me optimism. This quarter we saw continued growth in revenue from both large and small matters with acceleration in revenue from multi-terabyte matters.

上個季度我討論了我們對大型多TB級資料成長的關注，而本季我們在這個領域看到了持續的正面趨勢。我們業務中的使用模式一直讓我感到樂觀。本季度，無論大案或小案，營收均持續成長，其中多TB案件的營收成長速度加快。

We are also very pleased with the continued adoption that we are seeing related to our suite of generative AI capabilities, including Cecilia AI and our AI-driven auto review. The number of customers utilizing Cecilia AI over the quarter more than tripled year over year, and we've experienced consistent sequential growth in auto review adoption throughout 2025.

我們也對我們所看到的與生成式人工智慧功能套件相關的持續採用情況感到非常高興，其中包括 Cecilia AI 和我們的人工智慧驅動的自動評論。本季使用 Cecilia AI 的客戶數量年增超過三倍，我們在 2025 年全年都經歷了汽車評論採用率的持續成長。

Our overall positive performance continues to be driven by a relentless focus on delivering value to our customers through our value proposition of with you in every case. A great example of this is with a large multinational company involved in an industry transforming lawsuit. They selected DISCO as their legal technology provider and services partner. The case involves more than 10 terabytes of data, and this customer chose DISCO because we demonstrated our end-to-end capabilities in handling very complex cases. This customer selected DISCO because they valued the speed, scale, and ease of use of the DISCO platform.

我們整體業績持續向好，這得益於我們始終堅持以客戶為中心，透過「與您攜手共進」的價值主張，為客戶創造價值。一個很好的例子是一家大型跨國公司捲入的一場足以改變產業的訴訟。他們選擇 DISCO 作為其法律技術提供者和服務合作夥伴。這個案例涉及超過 10 TB 的數據，這位客戶選擇 DISCO 是因為我們展示了我們在處理非常複雜的案例方面的端到端能力。這位客戶選擇 DISCO 是因為他們看重 DISCO 平台的速度、規模和易用性。

They were able to reduce time to evidence while searching across hundreds of thousands of conversations spanning multiple communication forms and time periods. And in terms of support, they valued our onboarding and our in-house services capabilities. They appreciated their forensics team was on call to handle dozens of data sources, that we had a fully staffed project management team, and that we had leading review experts who could partner with them to deliver end results at an exceptional speed.

他們能夠在數十萬條涵蓋多種溝通形式和時間段的對話中進行搜索，從而縮短找到證據的時間。在支援方面，他們非常重視我們的入職培訓和內部服務能力。他們很欣賞我們的取證團隊隨時待命處理數十個資料來源，我們擁有人員齊全的專案管理團隊，以及能夠與他們合作以極快的速度交付最終結果的頂尖審查專家。

This customer was sourced through our lead generation team leveraging the new territory-based account orchestration model that I mentioned last quarter. This is just one example of that change already yearly results. The entire sales process for this customer was completed in roughly 4 months, a clear demonstration of the strength of our strategy and execution.

這位客戶是我們透過潛在客戶開發團隊，利用我上個季度提到的基於區域的新型客戶管理模式找到的。這只是每年業績變化的一個例子。整個銷售流程大約花了 4 個月就完成了，這充分體現了我們策略和執行力的強大。

Our results this year reflect a sharper focus on the right customers. Over the past year, we refined our approach to target those that we believe are the best fit for DISCO based on their scale, industry, and complexity, as well as the specific matter types that best take advantage of the capabilities of the DISCO platform. This is further validated by IDC, who named Disco a leader in the 2025 IDC Marketscape for worldwide end to end e-discovery software.

我們今年的業績反映出我們更加重視鎖定目標客戶。過去一年，我們不斷改進方法，以期找到那些我們認為最適合 DISCO 的客戶，這些客戶是根據其規模、行業和複雜性，以及最能利用 DISCO 平台功能的特定事項類型來選擇的。IDC 也進一步證實了這一點，他們將 Disco 評為 2025 年 IDC 全球端到端電子發現軟體市場領導者。

The IDC Marketscape noted that with the ability to scale seamlessly from modest projects to multi-million document matters, DISCO's tools handle large data volumes effectively, facilitate thorough analytics, and support core workflows such as timeline creation, deposition summarization, and intelligent batching, all while maintaining accuracy and transparency for defensibility.

IDC Marketscape 指出，DISCO 的工具能夠從小型專案無縫擴展到數百萬份文件的案件，有效處理大量數據，促進徹底的分析，並支援時間軸創建、證詞摘要和智慧批次等核心工作流程，同時保持準確性和透明度，以確保辯護的有效性。

This is a powerful statement by IDC that really encompasses what we strive to do here at DISCO. As we have previously discussed how our platform is particularly beneficial for certain types of matters. One of these matter types is intellectual property litigation.

這是IDC的一份強而有力的聲明，真正概括了我們在DISCO努力實現的目標。正如我們之前討論過的，我們的平台對於某些類型的事項尤其有利。其中一種案件類型是智慧財產權訴訟。

This past quarter we began a new initiative that highlights our strengths in IP litigation over our competitors, focusing a portion of our marketing and sales efforts specifically on IP litigation. Customers tell us that DISCO is an ideal fit for IP litigation for 3 key reasons.

上個季度，我們啟動了一項新舉措，旨在突出我們在智慧財產權訴訟方面相對於競爭對手的優勢，並將部分行銷和銷售工作專門集中在智慧財產權訴訟上。客戶告訴我們，DISCO 非常適合用於智慧財產權訴訟，原因有三。

First, IP litigation cases are typically very large and highly technical, involving decades of research, product development files, technical specifications, emails, source code, CAD files, and other complex document types. DISCO's ability to handle complex file types and deliberate scale makes us a key enabler of client success, and we shine brightest when building deep trusted partnerships in these types of environments.

首先，智慧財產權訴訟案件通常規模龐大且技術性很強，涉及數十年的研究、產品開發文件、技術規格、電子郵件、原始碼、CAD 文件和其他複雜的文件類型。DISCO 能夠處理複雜的文件類型和可控的規模，這使我們成為客戶成功的關鍵推動者，而我們在這種類型的環境中建立深厚的信任夥伴關係時，更是大放異彩。

The second reason is that these matters tend to be high stakes. That's the company litigation. A company's entire business plan may hinge on the outcome. DISCO's AI embedded within our platform helps lawyers quickly identify and understand the most relevant materials seamlessly across diverse file types, providing a strategic case defining information advantage to the legal teams.

第二個原因是這些事情往往事關重大。那是公司訴訟案。一家公司的整個商業計劃可能取決於結果。DISCO 平台內建的 AI 可協助律師快速識別和理解各種文件類型中最相關的資料，為法律團隊提供具有策略意義的案件定義資訊優勢。

Third, these cases typically involve aggressive timelines set by the courts and sheer volume of work that makes speed and precision critical. Our AI assisted workflows with Cecilia AI and auto review significantly reduced time to evidence, enabling our customers to hit deadlines and develop an optimal case strategy without sacrificing accuracy or quality. Our unique capabilities make DISCO the natural solution for IP litigation that can deliver significant value for our customers while driving long-term growth for DISCO. As a matter of fact, this customer success story that I mentioned earlier is an IP related matter that perfectly fits our strategy. In the future, you will see us roll out similar initiatives for other matter profiles where DISCO delivers immense value compared to our competitors.

第三，這些案件通常涉及法院設定的緊迫時間限制和大量的工作，因此速度和精確性至關重要。我們藉助 Cecilia AI 和自動審查的 AI 輔助工作流程顯著縮短了獲取證據的時間，使我們的客戶能夠在不犧牲準確性或品質的前提下按時完成任務並製定最佳案件策略。我們獨特的能力使 DISCO 成為智慧財產權訴訟的天然解決方案，可以為我們的客戶帶來巨大的價值，同時推動 DISCO 的長期成長。事實上，我之前提到的這個客戶成功案例與智慧財產權相關，與我們的策略完美契合。未來，我們將針對其他案件類型推出類似的舉措，在這些案件類型中，DISCO 相較於我們的競爭對手能夠帶來巨大的價值。

Finally, we are operating in a highly complex environment. The legal world is changing rapidly, and Disco is in the prime position to be the disrupter in this technology revolution. We have a core platform that makes complex workflows look simple and effortless which is then paired with AI capabilities that are transformational to how our customers approach their craft. I often get questions from you about Cecilia and our generative AI innovation and how DISCO is different. With that in mind, I want to take some time for you to hear directly from Richard Crum, our chief product technology and strategy officer, on this specific topic, and I'm excited for you to hear from him.

最後，我們是在一個高度複雜的環境中運作的。法律界正在迅速變化，而 Disco 處於引領這場技術革命的顛覆者的最佳位置。我們擁有一個核心平台，能夠讓複雜的工作流程看起來簡單又輕鬆，再加上人工智慧功能，徹底改變了客戶處理工作的方式。我經常收到你們關於 Cecilia 和我們的生成式人工智慧創新以及 DISCO 有何不同之處的問題。考慮到這一點，我想花點時間讓大家直接聽聽我們的首席產品技術和策略官理查德·克魯姆就這個具體話題發表看法，我很期待大家能聽到他的意見。

So with that, I'll turn it over to Richard.

那麼，接下來就交給理查。

Thanks Eric. I appreciate the opportunity to share more about how and why our technology is a strategic advantage in this really exciting time.

謝謝你，埃里克。我很榮幸有機會與大家分享，在這個令人興奮的時代，我們的技術如何以及為何能成為一項策略優勢。

I joined DISCO 16 months ago knowing of our reputation for having a strong product and for leveraging modern cloud technology and AI to offer a solution that is intuitive, innovative, and operating at scale with impressive performance metrics. I also joined looking forward to teaming up again with Eric whom I worked with as Chief Product Officer at Burth.

16 個月前我加入 DISCO，我知道我們以擁有強大的產品而聞名，並且利用現代雲端技術和人工智慧提供直覺、創新且可大規模運行的解決方案，其效能指標令人印象深刻。我也很期待再次與 Eric 合作，我之前在 Burth 擔任首席產品長時曾與他共事。

Here at DISCO, I have the privilege of leading our product and engineering teams, and I've seen close up how effective we are at offering solutions that meet the high bar our customers have for the technology they use to achieve the best outcomes on the legal matters they manage. Let me give you some examples of why that is true. It shouldn't surprise you that I want to start to tell you about the AI capabilities that make our products so effective with customers.

在 DISCO，我有幸領導我們的產品和工程團隊，並且我親眼目睹了我們在提供解決方案方面的高效性，這些解決方案能夠滿足客戶對他們所用技術的高標準要求，幫助他們在處理法律事務時取得最佳成果。讓我舉幾個例子來說明為什麼這是真的。我想向你們介紹一下人工智慧技術如何使我們的產品對客戶如此有效，這應該不會讓你們感到驚訝。

Before I talk about the Gen AI features that understandably get more airtime. I think it is important to note that DISCO has been building AI throughout our products for over a decade in ways that directly impact how our customers manage legal matters. Our dynamic topic clustering technology is often the first place a user of DISCO will go after ingesting all of the likely relevant documents. The analytical capability of the models that powers this set of features gives attorneys a quick glance into the people, entities, information, and topics resident in the document population.

在討論那些理所當然更受關注的Gen AI功能之前，我認為有必要指出，DISCO十多年來一直在我們的產品中建立人工智慧，這些功能直接影響著客戶處理法律事務的方式。在 DISCO 中，使用者在匯入所有可能相關的文件後，通常會先存取我們的動態主題聚類技術。為這組功能提供支援的模型的分析能力，使律師能夠快速了解文件群體中的人員、實體、資訊和主題。

The technology automatically updates the information as new data and documents are added to the platform. Attorneys use this tool set to help understand and analyze thousands or millions of documents in real time. And they can do this without requiring the help of a services team or needing to leverage a separate solution. It's one of the many great examples of the power of the DISCO platform and something we know drives real value for our customers. A second example is our predictive analytics that observes the work attorneys do in DISCO and directs them to the other documents and data that are likely to be highly relevant based on how they have interacted with other documents.

該技術會在平台新增資料和文件時自動更新資訊。律師使用這套工具來幫助即時理解和分析成千上萬份甚至數百萬份文件。而且他們無需服務團隊的幫助，也無需借助單獨的解決方案即可做到這一點。這是 DISCO 平台強大功能的眾多絕佳例證之一，也是我們知道能為客戶帶來真正價值的功能之一。第二個例子是我們的預測分析，它可以觀察律師在 DISCO 中所做的工作，並根據他們與其他文件的交互方式，引導他們查看可能高度相關的其他文件和資料。

When you have a database with terabytes of information, the time savings this capability offers can be massive. And helping legal teams quickly narrow down the population of documents down to the right set enables them to focus on the evidence that matters most. In the last few years, we have built on the foundation of these examples of AI powered tools to offer additional Gen AI features that we call Cecilia.

當您擁有包含TB級資訊的資料庫時，此功能可節省大量時間。幫助法律團隊快速縮小文件範圍，找到合適的文件，可以讓他們專注於最重要的證據。在過去的幾年裡，我們以這些人工智慧工具的例子為基礎，提供了我們稱為 Cecilia 的更多 Gen AI 功能。

They further enable legal teams to identify relevant evidence quickly and with confidence. Cecilia Q&A operates at the level of an individual document or across an entire database that could contain millions of documents. In a simple context chatbot, lawyers can ask natural language questions and interact with the data as if they were speaking to an associate who has read and fully understood every single document and get answers with reference only to the evidence contained in the documents because that's what we built Cecilia to be. And it's not just impressive at finding the key documents quickly and explaining to you why they're relevant to your inquiry.

它們也能幫助法律團隊快速、自信地辨識相關證據。Cecilia Q&A 既可以針對單一文件運行，也可以針對包含數百萬個文件的整個資料庫運行。在簡單的聊天機器人中，律師可以像與一位閱讀並完全理解每一份文件的同事交談一樣，用自然語言提出問題並與數據進行交互，並僅參考文件中包含的證據獲得答案，因為這就是我們構建 Cecilia 的目的。它不僅能夠快速找到關鍵文件並向您解釋為什麼這些文件與您的查詢相關，這一點令人印象深刻。

The Cecilia is built to be a trusted tool for attorneys. In a world that worries about generative AI hallucinations and what data a model was trained using. We developed Cecilia to be technology that customers can have confidence in. When it returns results, it also provides citations back to the exact part of the document that is used to answer your question. And its answers are only based on the documents in your database.

Cecilia 的設計目標是成為律師值得信賴的工具。在一個人們擔憂生成式人工智慧產生的幻覺以及模型使用哪些資料進行訓練的世界中。我們開發 Cecilia 的目的是為了打造一款讓客戶信賴的技術。傳回結果時，它還會提供指向文件中用於回答您問題的確切部分的引用。它的答案僅基於資料庫中的文件。

This is not a simple LLM wrapper. We developed Cecilia with a set of technical sequences that deliver a product experience that is powerful and impactful to your legal work. Cecilia Q&A is just one of the impressive Gen AI skills that is built right into the disco platform at moments in the workflow that matter.

這不是一個簡單的LLM封裝器。我們在開發 Cecilia 時採用了一系列技術流程，旨在為您的法律工作提供強大且有影響力的產品體驗。Cecilia Q&A 只是 Gen AI 眾多令人印象深刻的技能之一，這些技能在工作流程的關鍵時刻直接整合到 disco 平台中。

We also offer document summaries, definitions of any term based on the information of the documents set, automatic timelines, and topic summarization of deposition transcripts. Altogether, Cecilia is a sophisticated set of tools leveraging generative AI technology that we have been offering to the market for almost 2 years and constantly investing to make it better. Tools built upon the existing system of record the legal team is already using to manage the matter. And when legal professionals experience the impact, it can be hard to imagine working on a matter without Cecilia. A great example comes from an AMLO 50 customer that tried out Cecilia AI for the first time in July of 2024. They saw the value that is provided by utilizing these capabilities I just described, and since that initial use of Cecilia their adoption has continued to expand.

我們還提供文件摘要、基於文件集資訊的任何術語定義、自動時間軸以及證詞筆錄的主題摘要。總而言之，Cecilia 是一套利用生成式人工智慧技術的複雜工具，我們已經向市場推出了近 2 年，並且一直在不斷投資使其變得更好。這些工具建立在法律團隊目前用於處理案件的現有記錄系統之上。當法律專業人士感受到這種影響時，很難想像沒有塞西莉亞的幫助該如何處理案件。AMLO 50 的一位客戶在 2024 年 7 月首次試用了 Cecilia AI，這就是一個很好的例子。他們看到了利用我剛才描述的這些功能所帶來的價值，自從最初使用 Cecilia 以來，他們的採用範圍就一直在擴大。

Following their initial trial, the customer has adopted Cecilia AI in a variety of types and sizes of matters, from matters as small as 5 gigabytes to large complex matters with millions of documents. In fact, the number of matters utilizing Cecilia AI at this firm has grown 7 times from Q3 2024 to Q3 2025, which corresponds to a more than 12 times growth in revenue.

在最初的試用之後，該客戶已將 Cecilia AI 應用於各種類型和規模的事務中，從 5 GB 的小型事務到包含數百萬份文件的大型複雜事務。事實上，該公司使用 Cecilia AI 處理的案件數量從 2024 年第三季到 2025 年第三季增加了 7 倍，這相當於營收成長了 12 倍以上。

We are proud to continue partnering with this innovative customer, delivering advanced generative AI solutions that turn time consuming legal challenges into streamlined high-value opportunities. Another DISCO Gen AI capability that has been delivering significant value to customers for more than a year now is auto review.

我們很榮幸能繼續與這位富有創新精神的客戶合作，提供先進的生成式人工智慧解決方案，將耗時的法律挑戰轉化為精簡高效的高價值機會。DISCO Gen AI 的另一個功能是自動審核，這項功能已經為客戶帶來了超過一年的巨大價值。

You have heard Eric and Michael talk about auto reviews since it was launched last August and how impressed customers have been with its performance, accuracy, and the cost savings it offers, particularly on very large matters. From an engineering standpoint, it represents something much more sophisticated and technically challenging than sending off documents to a large language model.

自去年八月推出以來，您一定聽過 Eric 和 Michael 談論汽車評測，以及客戶對它的性能、準確性和節省成本（尤其是在大宗交易方面）的印像有多麼深刻。從工程角度來看，這比將文件傳送到大型語言模型要複雜得多，技術上也更具挑戰性。

The technology behind auto review is built upon a decade of deep understanding of the review process and technology that was developed to handle the scale and complexity of documents and data that our customers bring to DISCO. This technology earns our customers' trust by providing clear explanation for tagging performed by auto review and offering tools to report quality statistics that align with how courts measure the efficacy of other technology assisted document review approaches.

自動審核背後的技術建立在對審核流程和技術的十年深入理解之上，該技術旨在處理我們的客戶帶到 DISCO 的文件和資料的規模和複雜性。這項技術透過清楚地解釋自動審查執行的標記，並提供工具來報告品質統計數據，從而贏得客戶的信任，這些統計數據與法院衡量其他技術輔助文件審查方法的有效性的方式一致。

I've spoken a few times about trust when describing our AI-based capabilities. We take that very seriously and it extends even back to the core technology platform where we bring all these features and capabilities together in a simple yet powerful user experience. At DISCO, we obsess about ensuring the entire product experience for our customers is secure, reliable, and incredibly performing at the scale of the matters that our customers bring.

在描述我們基於人工智慧的能力時，我曾多次談到信任。我們非常重視這一點，甚至將其延伸到核心技術平台，我們將所有這些特性和功能整合到一個簡單而強大的使用者體驗中。在 DISCO，我們致力於確保為客戶提供的整個產品體驗安全、可靠，並且在客戶提出的各種規模的問題上都能表現出色。

The volume and sources of data that could be necessary to review for evidence and litigations, investigations, and regulatory matters has continued to explode, and no one believes there's an end in sight. This has resulted in customers bringing larger and larger matters to disco, and we have continued to perform with the speed and accuracy they've come to expect. That's because DISCO was built for scale. Leveraging the best technology and engineering talent, DISCO is ready for whatever our customers need. Let me finish up with a word on another phrase I've used more than a few times in my commentary, and that's scale.

審查證據、訴訟、調查和監管事項可能需要的資料量和資料來源持續爆炸性成長，而且沒有人認為這種增長會停止。因此，客戶將越來越大的事情帶到迪斯可處理，而我們也繼續以他們所期望的速度和準確性來完成工作。這是因為 DISCO 的設計初衷就是為了大規模應用。憑藉一流的技術和工程人才，DISCO 已做好準備，滿足客戶的任何需求。最後，我想再談談我在評論中多次使用過的另一個詞組，那就是規模。

Because of our personal experience with consumer technology that can feel like it's improving at an astronomical rate, we can begin to believe that business software in general is also advancing at the same rate. That's not always true. In fact, much of the legacy software used for document review is far behind DISCO in how well it performs under high database sizes. Ask any legal professional about their experience in legacy e-discovery solutions with simple tasks like switching between two documents or running a keyword search, and you're very likely to hear the word slow in their response. That's because operating at scale doesn't just mean being able to hold a large quantity of data.

由於我們個人對消費科技的發展速度感到驚嘆，我們可能會開始相信，商業軟體整體上也以同樣的速度發展。情況並非總是如此。事實上，許多用於文件審查的傳統軟體在處理大型資料庫時的表現遠遠落後於 DISCO。如果你問任何一位法律專業人士，他們在使用傳統電子取證解決方案執行諸如在兩個文檔之間切換或運行關鍵字搜索等簡單任務時的體驗如何，你很可能會在他們的回答中聽到“慢”這個詞。這是因為大規模營運不僅僅意味著能夠儲存大量資料。

It also means providing a user experience that runs just as well in both small and massive sets of data and documents. This is an area where disco shines. And we do it both of those simple tasks I just referenced and the experience of using Cecilia Q&A, something that definitely leaves our users amazed when they see it live. Operating a platform that performs like DISCO is the result of years of solid engineering work and our obsession with providing an incredible user experience to everyone who logs into DISCO every day. And it is a great example of how we are with you in every case. It is not easy to operate AI at the scale the way we do at DISCO. It is also a competitive advantage that will enable DISCO to continue to expand our product offering and win more and more loyal customers who say it has to be DISCO.

這也意味著要提供良好的使用者體驗，無論資料和文件規模大小，都能流暢運作。這就是迪斯可大放異彩的地方。我們透過我剛才提到的這兩個簡單任務以及使用 Cecilia Q&A 的體驗來實現這一點，這絕對會讓用戶在實際體驗中感到驚訝。DISCO 平台能夠如此高效地運行，是多年來紮實的工程工作以及我們致力於為每天登入 DISCO 的每個人提供卓越使用者體驗的結果。這正是我們始終與您站在一起的絕佳例證。在DISCO這樣大規模地運行人工智慧並不容易。這也是一種競爭優勢，使 DISCO 能夠繼續擴大我們的產品供應，並贏得越來越多的忠實客戶，他們會說非 DISCO 莫屬。

And with that, let me turn things over to Michael.

那麼，接下來就交給麥可吧。

Thank you, Richard.

謝謝你，理查。

In Q3 2025, total revenues were 40.9 million, up 13% year over year. In software revenues were 35.2 million, up 17% year over year. Included in these balances is the revenue contributed from a case that has been on our platform for several years and was contingent on the successful outcome of the case. In Q3, we were able to recognize 1.3 million of total revenues from this case. Of which 1.2 million related to software. I would like to note that the Q3 total revenue and software revenue year over year growth would have been 9% and 13% respectively without this contingent revenue, which still exceeds the high end of our guidance range for both metrics.

2025 年第三季總營收為 4,090 萬美元，年增 13%。軟體營收為 3,520 萬美元，較去年同期成長 17%。這些餘額中包含了在我們平台上持續多年的案件所帶來的收入，而這筆收入取決於案件的成功結果。第三季度，我們從該案例中確認了 130 萬的總收入。其中 120 萬與軟體相關。我想指出，如果不計入這筆或有收入，第三季度總收入和軟體收入的同比增長率將分別為 9% 和 13%，這仍然超過了我們對這兩個指標的預期範圍上限。

Excluding the large one-time case we recognized in Q3, 2 primary drivers of the software year over year revenue performance were growth in the revenue across large and small matters, especially with multi-terabyte matters, as well as growth of Cecilia AI adoption Services revenues, which include DISCO manage review and professional services for 5.7 million. 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.

除我們在第三季度確認的一次性大額案件外，軟體業務同比收入增長的兩個主要驅動因素是：大額和小額案件的收入增長，尤其是數TB案件的收入增長，以及Cecilia AI採用服務收入的增長，其中包括DISCO管理審查和專業服務，為570萬美元提供服務。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。

Our gross margin in Q3 was 77% compared to 74% in the prior year. 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.

第三季毛利率為77%，而上年同期為74%。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 Q3 was $13.6 million or 33% of revenue compared to 38% of revenue in Q3 of the prior year. On a dollar basis, sales and marketing expense decreased $0.2 million predominantly driven by lower marketing and consulting expenses.

第三季的銷售和行銷費用為 1,360 萬美元，佔營收的 33%，而去年同期佔營收的 38%。以美元計算，銷售和行銷費用減少了 20 萬美元，主要原因是行銷和諮詢費用降低。

Research and development expense for Q3 was $11.5 million or 28% of revenue, compared to 31% of revenue in Q3 of the prior year. On a dollar basis, research and development expense increased to $0.4 million driven primarily by headcount related costs. General and administrative expense in Q3 was 7.7 million, or 19% of revenue, compared to 21% of revenue in Q3 of the prior year.

第三季的研發費用為 1,150 萬美元，佔營收的 28%，而上年同期佔營收的 31%。以美元計算，研發費用增加至 40 萬美元，主要原因是人員增加帶來的成本上升。第三季一般及行政費用為 770 萬，佔營收的 19%，而上年同期佔營收的 21%。

Adjusted EBITDA was negative $0.3 million in Q3, representing an adjusted EBITDA margin of negative 1% compared to an adjusted EBITDA margin of negative 12% in Q3 of the prior year. This represents the beat of the high end of the guidance range we provided last quarter and 4.2 million year over year improvements.

第三季調整後 EBITDA 為負 0.3 百萬美元，調整後 EBITDA 利潤率為負 1%，而去年同期調整後 EBITDA 利潤率為負 12%。這比我們上季度給出的預期範圍上限還要高，並且比上年同期增長了 420 萬。

Net loss in Q3 was $0.6 million or negative 1% of revenue compared to a net loss of $3.9 million or negative 11% of revenue in Q3 of the prior year. Net loss per share for Q3 was $0.01 compared to $0.06 per share for Q3 of the prior year.

第三季淨虧損為 60 萬美元，佔營收的 -1%，而上年同期淨虧損為 390 萬美元，佔營收的 -11%。第三季每股淨虧損為 0.01 美元，而去年同期每股淨虧損為 0.06 美元。

Turning to the balance sheet and cash flow statement, we ended Q3 with $113.5 million in cash in short-term investments and no debt. Operating cash flow for the first three quarters of 2025 was negative $15.7 million compared to negative $10.8 million in the same period of the prior year.

從資產負債表和現金流量表來看，第三季末我們擁有1.135億美元的短期投資現金，且沒有債務。2025 年前三個季度的經營現金流為負 1,570 萬美元，而去年同期為負 1,080 萬美元。

Turning to the outlook for Q4 2025, we are providing total revenue guidance in the range of $38.75 million to $40.75 million in software revenue guidance in the range of $33.75 million to $34.75 million. We expect to just to even up to be in the range of negative $3.5 million to $1.5 million. For fiscal year 2025, we anticipate total revenue guidance in the range of $154.4 million, $256.4 million in software revenue guidance in the range of $132.6 million to $133.6 million. I would like to note that the contingent revenue case I spoke about earlier was previously included in our full year guide. We expect a just EITA to be in the range of negative $11.5 million. The negative $9.5 million. Now I'd like to turn the call over to the operator to open up the line for Q&A operator.

展望 2025 年第四季度，我們預計總營收將在 3,875 萬美元至 4,075 萬美元之間，軟體收入預計在 3,375 萬美元至 3,475 萬美元之間。我們預計最終結果將在負 350 萬美元到負 150 萬美元之間。對於 2025 財年，我們預計總營收將在 1.544 億美元至 2.564 億美元之間，軟體收入預計在 1.326 億美元至 1.336 億美元之間。我想指出，我之前提到的或有收入案例先前已包含在我們的全年指南中。我們預計 EITA 的合理預期將在負 1150 萬美元左右。虧損950萬美元。現在我想把電話轉交給接線員，以便為問答接線員開通線路。

Great, thanks so much. (Operator Instructions)

太好了，非常感謝。（操作說明）

And it appears there are no questions. So, I will now turn the call back over to CEO Eric Friedrichsen for closing remarks, Eric.

似乎沒有人提出問題。現在我將把電話轉回給執行長埃里克·弗里德里希森，請他作總結發言。埃里克。

Actually Eric, we did just receive one question if you would like to take it.

艾瑞克，我們剛剛收到一個問題，如果你願意回答的話。

Sure.

當然。

Okay. Our first question comes from the line of DJ Hynes with Canaccord Genuity. DJ, please go ahead.

好的。我們的第一個問題來自 Canaccord Genuity 的 DJ Hynes。DJ，請開始。

DJ, you there? I.

DJ，你在嗎？我。

Guess I just wanted to ask about the contingent liability or the contingent case rather. How many cases are like that? Is that industry standard or it feels a little odd?

我其實想問的是或有負債，或者更確切地說是或有案件。有多少起這樣的案例？這是業界標準嗎？還是覺得有點奇怪？

Hey DJ, let me touch on that real quick. We have a small number of other contingent cases in the system, but nothing close to this size. Let me explain by what we mean by a contingent case. It's basically on a limited basis we'll enter into a contract where basically the payment is contingent on the conclusion of the legal matter. And in these instances we don't recognize the revenue until the legal matter is resolved. In Q3, one of our customers under one of these arrangements experienced a favorable conclusion allowing us to recognize 1.3 million in revenue of which 1.2 was software and the balance was services.

嘿，DJ，我簡單說一下。系統中還有少量其他待處理案例，但規模遠不及此。讓我解釋一下什麼是偶然事件。基本上，我們會在有限的基礎上簽訂合同，其中付款取決於法律事務的最終結果。在這種情況下，我們只有在法律問題解決後才會確認收入。第三季度，我們的一位客戶根據其中一項安排獲得了有利的結論，使我們能夠確認 130 萬的收入，其中 120 萬是軟體收入，其餘部分是服務收入。

Yeah, and so that's why we called it out specifically, DJ, we had 17% software growth and 13% overall growth, but even without that case we had 13% software growth and 9% overall growth in the business, which exceeds the high end of our range, even without that contingent that contingent case, but we did want to make sure to call out that contingent case specifically.

是的，所以我們才特意提到了這一點，DJ，我們的軟體業務增長了 17%，整體業務增長了 13%，但即使不考慮這種情況，我們的軟體業務也增長了 13%，整體業務增長了 9%，這超過了我們預期範圍的上限，即使沒有那個特殊情況，但我們確實想特別強調一下那個特殊情況。

Okay, great, thanks for clearing that up. And then just a quick one for Michael. So you know we have your previous guidance or I guess your target for in quarter, even a break even for Q4 of 2026, but I'm looking at, we're seeing some linear improvement over the past couple quarters where you were just under break even this quarter.

好的，太好了，謝謝你解釋清楚。然後，給邁克爾快速提一個問題。所以你知道，我們之前有你的指導意見，或者我猜你的季度目標，甚至在 2026 年第四季度實現盈虧平衡，但我看到的是，在過去的幾個季度裡，我們看到了一些線性改善，而你本季度剛剛勉強達到盈虧平衡。

Are you still maintaining that target for next year, or do you think there's some upside we could see there?

明年的目標是否仍然不變，還是認為還有進步空間？

I'll take that one. This is Eric. Yes, we're still targeting adjusted even a break even for Q4 of 2026. We could certainly push to get to profitability sooner, but right now we're making really smart investments in the business that are obviously paying off in the results in terms of the go to market investments that we make in terms of the innovation investments that we make. And those transformational investments. So look, this is a big market, it's a growing market, and the money that we're spending right now is really helping accelerate the revenue of the business. So the target is still Q4 of 2026 for adjusted even at breaking.

我選那個。這是埃里克。是的，我們仍然計劃在 2026 年第四季實現調整後的損益平衡。我們當然可以努力更快地實現盈利，但目前我們正在對業務進行非常明智的投資，這些投資顯然在市場推廣投資和創新投資方面都取得了回報。以及那些具有改變意義的投資。所以你看，這是一個很大的市場，一個不斷成長的市場，我們現在投入的資金確實有助於加速業務收入的成長。因此，即使發生突破，調整後的目標仍然是 2026 年第四季。

Okay, great, thanks guys.

好的，太好了，謝謝大家。

Thanks DJ. (Operator Instructions)

謝謝DJ。（操作說明）

All right, do not see any callers. So again, I will hand the call back to CEO Eric Friedrichsen for closing remarks. Eric, take it away.

好的，沒有來電者。那麼，我再次把電話交還給執行長埃里克·弗里德里希森，請他作總結發言。艾瑞克，你來開始吧。

Great, thank you very much. Thanks everyone for joining the call today. Look, I am really pleased that our progress in Q3 and really frankly our progress throughout the entire year. We've been very fortunate, we set a strategy for this year to focus on our biggest and best customers with the most opportunity for growth and also the the matter types where we could add the most value to our customers and also generate the most revenue for DISCO.

太好了，非常感謝。感謝各位今天參加電話會議。你看，我真的很高興我們在第三季取得的進展，坦白說，我也很高興我們全年的進展。我們非常幸運，今年我們制定了一項策略，重點關注我們最大、最好的客戶，這些客戶擁有最大的成長機會，同時我們也關注那些能夠為客戶創造最大價值並為 DISCO 帶來最大收入的事項類型。

So we set that strategy, but more importantly, I'm really proud of the team for how they've executed upon that strategy, and it's given us the opportunity in each of the quarters this year to be able to beat our guidance this last quarter to be able to beat the high end of our guidance range. And for us to be able to increase our guide for the full year every single quarter, but it's not even so much the results that I'm happy about. It's the team and how they've executed upon our strategy, and that gives me a lot of confidence. It gives me a lot of confidence about our future.

所以我們制定了這項策略，但更重要的是，我為團隊執行這項策略的方式感到非常自豪，這使我們有機會在今年的每個季度都超越我們的預期，並在最後一個季度超越了我們預期範圍的上限。我們每季都能提升全年的業績預期，但這甚至不是讓我感到高興的重點。是團隊以及他們執行我們策略的方式給了我很大的信心。這讓我對我們的未來充滿信心。

So, I just want to thank our teams. I want to thank our customers for everything they're doing. To stay focused on, accelerating the growth for Disco, and, I'm looking forward to updating you next quarter. Have a great evening.

所以，我只想感謝我們的團隊。我要感謝我們的客戶所做的一切。為了繼續專注於加速 Disco 的成長，我期待下個季度向大家報告最新進展。祝你有個美好的夜晚。

Thanks Eric, and this concludes today's conference call. You may now disconnect. Have a great day everyone.

謝謝艾瑞克，今天的電話會議到此結束。您現在可以斷開連線了。祝大家今天過得愉快。