LAW - CS Disco Q4 Earnings: One Step Into The Good Direction But That's Not Enough
2024-02-24 06:42:45 ET
Summary
- CS Disco’s management decided to share more detailed information on the business on the company’s Q4 earnings call trying to restore investor confidence.
- Meanwhile, fundamental trends at the company remained uncertain, keeping the market waiting for a credible turnaround.
- The class action lawsuit filed against the company is still an important risk factor worth monitoring closely.
Introduction and Investment thesis
CS Disco (LAW) is a legal tech company trying to reshape $800-900 billion legal services industry with its modern, cloud-based tech suite. The company's flagship product is its e-discovery software, which helps collecting, storing, and preparing data digitally for lawsuits, thereby reducing the need for manual work. The competition in the e-discovery space is strong, so Disco tries to stand out by its differentiated product suite. Among other, this includes Disco Review, a service provided for typically large legal reviews, or Cecilia AI, the company's AI-based chatbot, which has been made generally available in December....
CS Disco Q4 Earnings: One Step Into The Good Direction, But That's Not Enough