Earnings call transcript: CS Disco Q1 2025 sees stock surge despite revenue miss

CS Disco LLC, a prominent player in the legal technology sector, reported its Q1 FY2025 earnings on May 7, 2025. The company posted an earnings per share (EPS) of -$0.08, slightly better than the forecasted -$0.09. However, revenue came in at $30.9 million, falling short of the anticipated $36.12 million. Despite the revenue miss, the company’s stock experienced a significant aftermarket surge, climbing 18.46% to $4.30, reflecting investor optimism about the firm’s strategic direction and future prospects.

Key Takeaways

• CS Disco reported a narrower-than-expected loss with an EPS of -$0.08, beating forecasts.
• Total revenue for Q1 FY2025 was $30.9 million, below the estimated $36.12 million.
• The stock price surged by 18.46% in aftermarket trading, reaching $4.30.
• The company is focusing on innovative AI solutions and expanding its customer base.
• CS Disco aims for EBITDA breakeven by Q4 2026.

Company Performance

CS Disco LLC demonstrated resilience in a challenging market environment, with revenue for Q1 FY2025 increasing by 3% year-over-year to $30.9 million, maintaining its impressive 24% revenue CAGR over the past five years. The company’s focus on software revenue, which also grew by 3% to $30.9 million, underscores its commitment to technological innovation. With a strong current ratio of 6.11 and more cash than debt on its balance sheet, the company maintains solid financial flexibility. The legal technology market, known for its resilience, could provide further growth opportunities as economic uncertainties potentially increase litigation activities. InvestingPro subscribers can access 12 additional key insights about CS Disco’s financial health and growth prospects.

Financial Highlights

• Revenue: $30.9 million, up 3% year-over-year
• Software revenue: $30.9 million, up 3% year-over-year
• Services revenue: $5.8 million, up 2% year-over-year
• Gross margin: 75%
• Adjusted EBITDA: -$5.1 million (-14% margin)
• Cash and short-term investments: $118.8 million
• No debt

Earnings vs. Forecast

CS Disco’s earnings per share of -$0.08 slightly surpassed the forecasted -$0.09, marking a minor improvement. However, the company’s actual revenue of $30.9 million fell short of the $36.12 million forecast. This revenue miss represents a significant deviation from expectations, potentially due to market dynamics or execution challenges.

Market Reaction

Despite the revenue shortfall, CS Disco’s stock surged by 18.46% in aftermarket trading, closing at $4.30. This increase suggests strong investor confidence in the company’s strategic initiatives and future growth prospects, particularly in its AI-driven solutions. The stock’s performance contrasts with its 52-week low of $3.31, indicating a positive shift in market sentiment.

Outlook & Guidance

Looking ahead, CS Disco provided revenue guidance for Q2 FY2025 in the range of $36.5 million to $38.5 million. For the full year FY2025, the company anticipates total revenue between $146 million and $158 million, with an adjusted EBITDA guidance of -$18 million to -$15 million. Analyst consensus shows mixed sentiment, with price targets ranging from $5 to $9 per share, and six analysts recently revising their earnings expectations downward. The company remains focused on expanding its wallet share with existing customers and targeting long-term growth exceeding 20%. Get access to detailed analyst forecasts and comprehensive financial analysis through the Pro Research Report, available exclusively on InvestingPro.

Executive Commentary

CEO Eric Friedrichsen emphasized the company’s strategic positioning, stating, "We’re just getting started." He also highlighted the company’s commitment to customer success, stating, "We’re with them in every case." Friedrichsen expressed confidence in the legal sector’s resilience during economic downturns, noting, "Historically, litigation has done pretty well in economic downturns."

Risks and Challenges

• Economic downturns could impact overall market demand.
• Execution risks associated with new product launches and innovations.
• Intense competition in the legal technology sector.
• Dependence on large customers for a significant portion of revenue.
• Potential regulatory changes affecting the legal industry.

Q&A

During the earnings call, analysts inquired about CS Disco’s go-to-market strategy and its preparedness for potential economic downturns. The company addressed these concerns by outlining its refined strategy and highlighting its focus on customer acquisition and expansion. Analysts also expressed interest in the company’s new "With You In Every Case" positioning, which aims to enhance customer engagement and satisfaction.

Full transcript - CS Disco LLC (LAW) Q1 2025:

Conference Operator: Ladies and gentlemen, thank you for standing by, and welcome to CS DISCO’s First Quarter of Fiscal Year twenty twenty five Conference Call. At this time, all participants are in a listen only mode. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. I would now like to hand the conference over to your first speaker today, Head of Investor Relations, Alexey Lokchakov.

Please go ahead.

Alexey Lokchakov, Head of Investor Relations, CS DISCO: 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 twenty twenty five. With me on today’s call are Eric Friedrichsen, DISCO’s Chief Executive Officer and Michael Affair, DISCO’s Chief Financial Officer. Today’s call will include forward looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding our financial outlook and future performance, 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. 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.

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 ks for the year ended 12/31/2024, filed with the SEC on 02/20/2025, and the company’s upcoming quarterly report on Form 10 Q for the quarter ended 03/31/2025. In addition, during today’s call, will discuss non GAAP financial measures. These non GAAP financial measures are in addition to and not of substituted 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.

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

Eric Friedrichsen, Chief Executive Officer, CS DISCO: Good afternoon, everyone. I am pleased to report our first quarter of fiscal twenty twenty five results, and I’m encouraged by the progress and the traction that we’re seeing across the business. Software revenue in Q1 was $30,900,000 and total revenue in Q1 was $36,700,000 towards the high end of the guidance range. Adjusted EBITDA for Q1 was negative $5,100,000 or negative 14%, approximately $1,000,000 above the high end of our guidance range. We finished the quarter with $118,800,000 of cash and short term investments and no debt.

We ended Q1 with three eighteen customers who each contributed more than $100,000 in total revenue over the last twelve 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.

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. 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.

First, I’m gonna highlight our focus on client services, changes in our go to market function in 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.

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 Munch Hart.

In q one, Munch 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. 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.

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. 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 and A and Cecilia AutoReview.

The number of our Cecilia Q and A customers grew five times from Q1 twenty twenty four. We are happy with this trajectory and this capability as more customers are leveraging Cecilia Q and A to drive superior outcomes for their customers. With AutoReview, we continue to see strong momentum as well. In q two of twenty twenty four, we announced that Cecilia auto review was demonstrating speeds of 3,800 documents per hour over a twenty four hour period, which is equivalent to a 140 person review team. Since then, we’ve continued to make big strides and even faster throughput and higher quality results that are potentially game changing for our industry.

Excitement was especially clear at Legal Week 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 m law 50 firm. In a government investigation involving close to 3,000,000 documents, this client leveraged Cecilia’s q and 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. 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. 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. Specifically, I’ve 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. We are continuing to release capabilities to 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. 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. 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. From a macro perspective, we have seen some external volatility over the past few months. The U.

S. 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. 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. Historically, 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. While the exact impact of the potential recession is uncertain, we remain optimistic that Disko’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. I want to thank our customers, partners and Disco employees for their continued trust and dedication. With that, I’ll I’ll turn it over to Michael to walk through our financials in more detail. Michael?

Michael Affair, Chief Financial Officer, CS DISCO: Thank you, Eric. In Q1 twenty twenty five, total revenues were $36,700,000 up 3% year over year. Software revenues were $30,900,000 up 3% year over year. Services revenues, which include DISCO managed review and professional services, were $5,800,000 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.

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 q one was 13,200,000.0 or 36% of revenue compared to 41% of revenue in q one of the prior year. The year over year decline is predominantly due to headcount changes.

Research and development expense for Q1 was $12,200,000 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 $8,400,000 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 $6,200,000 representing an operating margin of negative 17 compared to negative 18% in Q1 of the prior year.

Adjusted EBITDA was negative $5,100,000 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 $4,900,000 or negative 14% of revenue compared to a net loss of $4,700,000 or negative 13% of revenue in Q1 of the prior year. Net loss per share for Q1 was $08 flat compared to Q1 of the prior year. Turning to the balance sheet and cash flow statement. We ended Q1 with $118,800,000 in cash and short term investments and no debt.

Operating cash flow in Q1 was negative $10,500,000 compared to negative $7,300,000 in Q1 of the prior year. Turning to the outlook. For Q2 twenty twenty five, we are providing total revenue guidance in the range of $36,500,000 to $38,500,000 and software revenue guidance in the range of $31,250,000 to $32,250,000 We expect adjusted EBITDA to be in the range of negative $5,500,000 to negative 3,500,000.0 For fiscal year twenty twenty five, we are providing total revenue guidance in the range of $146,000,000 to $158,000,000 and software revenue guidance in the range of $125,500,000 to 131,500,000.0 We expect adjusted EBITDA to be in the range of negative $18,000,000 to negative $15,000,000 This represents an increase in our fiscal year twenty twenty five 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 and A. Operator?

Conference Operator: Thank you. We will now begin the question and answer And your first question comes from the line of David Hynes from Canaccord Genuity. Your line is open.

David Hynes, Analyst, Canaccord Genuity: Hey. Thank you, guys. So, Eric, it’s been a little over a year since you took the reins as CEO at DISCO. I can appreciate the first twelve to eighteen 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 twelve to eighteen months? What are you focused on to drive faster growth in the business?

Eric Friedrichsen, Chief Executive Officer, CS DISCO: Yeah. Thanks, David. It’s been a year. I just celebrated my one year anniversary last week, and I gotta tell you, it’s just flown by. You know, 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.

It 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, you know, was 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’ve tackled them in the past. That was enhancing our culture, improving our operational effectiveness, and revamping our go to market. And so, you you know, we made incredible strides so far.

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 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 and we started to see the green shoots from that as as we mentioned some of them in our prepared remarks. But the reality is we’re just getting started.

Most of the things that we that I mentioned that we have implemented, either we implemented a couple 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 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 could see the future, and they wanna be part of it.

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

Michael Affair, Chief Financial Officer, CS DISCO: I’m I’m

Eric Friedrichsen, Chief Executive Officer, CS DISCO: I’m more excited about year two than about year one, but year one’s been great.

Alexey Lokchakov, Head of Investor Relations, CS DISCO: Good. Okay.

David Hynes, Analyst, Canaccord Genuity: And then I wanna ask about the new tagline. Right? I mean, it’s you know, sometimes these things are marketing collateral, but the, you know, the 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 or what exactly are you trying to accomplish with that kind of positioning of the the the business?

Eric Friedrichsen, Chief Executive Officer, CS DISCO: Yeah. You know, when I I think you probably know I’ve met with oh, gosh. It’s almost close to a hundred customers now face to face over the last year. And it’s 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 our products for, in some of the cases, they use our our products for all of their matters.

But in other cases, they really think of Disco as a self-service solution. 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 gonna get in the system every single day.

They’re gonna lean on their either their internal ediscovery teams or they’re gonna learn on lean on services to help them, whether it’s ingesting their data or managing the project throughout. And so, you know, a strength of ours is the fact that we’re so easy to use. We’re fast. We’re we can be self-service. But sometimes they want more than that.

And we’ve got great services. 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 if they have a matter that is self-service, they wanna use this 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. But an attorney could wake up in the middle of the night and have a theory about a case that they wanna test, And they can go directly into DISCO themselves. And in in natural language, use DISCO, use Cecilia q and a to ask a natural language question to 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.

Alexey Lokchakov, Head of Investor Relations, CS DISCO: Yep. Yep. Makes sense. Well, thank you for

David Hynes, Analyst, Canaccord Genuity: the color. Nice to see full year estimates moving higher off of q one. I don’t think we’ve seen that in a couple of years. So, good luck. Thank you.

Eric Friedrichsen, Chief Executive Officer, CS DISCO: Yeah. Appreciate it, Dave. Thank you.

Conference Operator: Your next question comes from the line of Mark Schappel from Loop Capital Markets. Your line is open.

Mark Schappel, Analyst, Loop Capital Markets: Hi. Thank you for taking my question. 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?

Eric Friedrichsen, Chief Executive Officer, CS DISCO: Sure. I’ll get started, and Michael, can feel free to jump in here as well. I mean, the first thing I would say regarding the a potential economic downturn here, You know, historically, litigation has done pretty well, in economic downturns. In fact, there’s

Alexey Lokchakov, Head of Investor Relations, CS DISCO: you know, there could be some some headwinds,

Eric Friedrichsen, Chief Executive Officer, CS DISCO: but oftentimes, there’s also tailwinds that help increase the amount of litigation. So, you know, there’s potential this could could create some additional opportunity for us. Now, you know, 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. 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,

Alexey Lokchakov, Head of Investor Relations, CS DISCO: I think I think the way

Eric Friedrichsen, Chief Executive Officer, CS DISCO: to think about it is, you know, and I’ve I’ve I said last quarter that we intend to be EBITDA adjusted EBITDA breakeven in q four of twenty twenty six, and that still continues to be the case. We, you know, we’re making investments right now to ensure that we’re taking advantage of the opportunity ahead of us. This 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’s certain things that we need to do in this business that are fundamental. I mentioned some of them already. 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 make us much more efficient. And we’ve rolled out a very targeted account based marketing approach. So some of those things require investment, and that’s investment that we’re making right now. You know, if we if we thought it was appropriate for us to reduce costs or to be able to, you know, to to be able to generate more EBITDA sooner, it’s possible that we could 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.

Mark Schappel, Analyst, Loop Capital Markets: Great. Thanks. And then as a follow-up, with respect to your rebuilt 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 playing a bigger role?

Eric Friedrichsen, Chief Executive Officer, CS DISCO: Yeah. So new new customer acquisition comes in a variety of different ways. You know, 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.

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

And we have we have a, 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, you know, we’ve got, many customers that spend a hundred thousand dollars plus with us or even a million dollars plus with us. And we only have, in some cases, 10 to 15 of their wallet share.

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 that it acquires 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. Great.

Thank you. You bet, Mark.

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

Eric Friedrichsen, Chief Executive Officer, CS DISCO: Thank you, and thanks, everyone, for joining us today. The Disco team is making really good progress, and I’m 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. You know, 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 accomplished and even more excited about what’s next. We’re just getting started. I’m looking forward to sharing more progress with you in the coming quarters. Thank you.

Conference Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.

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