FORM |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit No. | |||||
99.1 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
CS Disco, Inc. | ||||||||
Date: August 11, 2022 | By: | /s/ Michael Lafair | ||||||
Name: | Michael Lafair | |||||||
Title: | Chief Financial Officer |
June 30, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 228,187 | $ | 255,477 | |||||||
Accounts receivable, net | 24,309 | 20,740 | |||||||||
Other current assets | 2,950 | 4,634 | |||||||||
Total current assets | 255,446 | 280,851 | |||||||||
Property and equipment, net | 7,229 | 5,335 | |||||||||
Operating lease right-of-use assets | 10,937 | 864 | |||||||||
Intangible assets, net | 1,101 | — | |||||||||
Goodwill | 5,898 | — | |||||||||
Other assets | 737 | 351 | |||||||||
Total assets | $ | 281,348 | $ | 287,401 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 8,565 | $ | 4,686 | |||||||
Accrued expenses | 4,609 | 2,844 | |||||||||
Accrued salary and benefits | 5,817 | 7,955 | |||||||||
Deferred revenue | 2,690 | 2,175 | |||||||||
Operating leases | 1,229 | 890 | |||||||||
Finance leases | 39 | 99 | |||||||||
Total current liabilities | 22,949 | 18,649 | |||||||||
Operating leases, non-current | 9,711 | — | |||||||||
Finance leases, non-current | 219 | — | |||||||||
Other liabilities | 631 | 75 | |||||||||
Total liabilities | 33,510 | 18,724 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity | |||||||||||
Preferred stock $0.005 par value, 100,000 shares authorized and no shares issued and outstanding as of June 30, 2022 and December 31, 2021 | — | — | |||||||||
Common stock $0.005 par value, 1,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 58,662 and 58,010 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 294 | 291 | |||||||||
Additional paid-in capital | 407,028 | 395,850 | |||||||||
Accumulated deficit | (159,484) | (127,464) | |||||||||
Total stockholders’ equity | 247,838 | 268,677 | |||||||||
Total liabilities and stockholders’ equity | $ | 281,348 | $ | 287,401 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | $ | 33,710 | $ | 29,547 | $ | 68,178 | $ | 50,678 | |||||||||||||||
Cost of revenue | 8,489 | 8,695 | 17,458 | 14,483 | |||||||||||||||||||
Gross profit | 25,221 | 20,852 | 50,720 | 36,195 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 15,181 | 7,861 | 27,499 | 14,123 | |||||||||||||||||||
Sales and marketing | 18,931 | 10,832 | 35,350 | 18,708 | |||||||||||||||||||
General and administrative | 11,065 | 5,128 | 19,584 | 9,182 | |||||||||||||||||||
Total operating expenses | 45,177 | 23,821 | 82,433 | 42,013 | |||||||||||||||||||
Loss from operations | (19,956) | (2,969) | (31,713) | (5,818) | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest and other income | 29 | 21 | 59 | 34 | |||||||||||||||||||
Interest and other expense | (200) | (92) | (293) | (148) | |||||||||||||||||||
Loss from operations before income taxes | (20,127) | (3,040) | (31,947) | (5,932) | |||||||||||||||||||
Income tax provision | (44) | (43) | (73) | (79) | |||||||||||||||||||
Net loss | $ | (20,171) | $ | (3,083) | $ | (32,020) | $ | (6,011) | |||||||||||||||
Less accretion of redeemable convertible preferred stock | — | (25) | — | (51) | |||||||||||||||||||
Net loss attributable to common stockholders | $ | (20,171) | $ | (3,108) | $ | (32,020) | $ | (6,062) | |||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.35) | $ | (0.23) | $ | (0.55) | $ | (0.45) | |||||||||||||||
Weighted average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 58,344 | 13,636 | 58,159 | 13,513 |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flow from operating activities: | |||||||||||
Net loss | $ | (32,020) | $ | (6,011) | |||||||
Adjustments to reconcile net loss to cash used in operations: | |||||||||||
Depreciation and amortization | 1,155 | 830 | |||||||||
Stock-based compensation | 8,728 | 1,454 | |||||||||
Charge to allowance for credit losses | 367 | 251 | |||||||||
Loss (Gain) on disposal of long-lived assets | (1) | — | |||||||||
Unoccupied lease charges | 798 | — | |||||||||
Non-cash operating lease costs | 513 | 487 | |||||||||
Non-cash interest | — | 41 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (3,935) | (8,534) | |||||||||
Other current assets | 1,671 | (819) | |||||||||
Other long-term assets | (387) | — | |||||||||
Accounts payable | 2,966 | 1,513 | |||||||||
Accrued expenses and other | (1,703) | 1,268 | |||||||||
Deferred revenue | 211 | (153) | |||||||||
Operating lease liabilities | (525) | (502) | |||||||||
Other liabilities | (16) | — | |||||||||
Net cash used in operating activities | (22,178) | (10,175) | |||||||||
Cash flow from investing activities: | |||||||||||
Purchases of property, equipment and capitalized internal-use software development costs | (1,868) | (1,447) | |||||||||
Cash paid for acquisitions | (5,310) | — | |||||||||
Net cash used in investing activities | (7,178) | (1,447) | |||||||||
Cash flow from financing activities: | |||||||||||
Proceeds from public offering, net of underwriting discounts and commissions and other offering costs | (284) | (594) | |||||||||
Proceeds from exercise of stock options | 2,656 | 835 | |||||||||
Repurchase of common stock related to net share settlement | (264) | (107) | |||||||||
Principal payments on finance lease obligations | (42) | (55) | |||||||||
Net cash provided by financing activities | 2,066 | 79 | |||||||||
Net decrease in cash and cash equivalents: | (27,290) | (11,543) | |||||||||
Cash and cash equivalents at beginning of period | 255,477 | 58,569 | |||||||||
Cash and cash equivalents at end of period | $ | 228,187 | $ | 47,026 | |||||||
Supplemental disclosure: | |||||||||||
Cash paid for interest | $ | — | $ | 39 | |||||||
Cash paid for taxes | $ | 248 | $ | 57 | |||||||
Non-cash investing and financing activities: | |||||||||||
Accretion of preferred stock to redemption value | $ | — | $ | 51 | |||||||
Property and equipment included in accounts payable and accrued liabilities | $ | 920 | $ | — | |||||||
Costs related to initial public offering included in accounts payable and accrued liabilities | $ | — | $ | 1,550 | |||||||
Acquisition holdback | $ | 800 | $ | — | |||||||
Contingent consideration related to acquisition | $ | 593 | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net loss | $ | (20,171) | $ | (3,083) | $ | (32,020) | $ | (6,011) | |||||||||||||||
Depreciation and amortization expense | 700 | 406 | 1,155 | 830 | |||||||||||||||||||
Income tax provision | 44 | 43 | 73 | 79 | |||||||||||||||||||
Interest and other, net | 171 | 71 | 234 | 114 | |||||||||||||||||||
Stock-based compensation expense | 5,522 | 966 | 8,728 | 1,454 | |||||||||||||||||||
Payroll tax expense on employee stock transactions | 135 | 19 | 409 | 23 | |||||||||||||||||||
CEO Performance Award issuance expense | 386 | — | 386 | — | |||||||||||||||||||
Unoccupied leases expense | 798 | — | 798 | — | |||||||||||||||||||
Adjusted EBITDA | $ | (12,415) | $ | (1,578) | $ | (20,237) | $ | (3,511) | |||||||||||||||
Adjusted EBITDA margin | (37) | % | (5) | % | (30) | % | (7) | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cost of revenue | $ | 8,489 | $ | 8,695 | $ | 17,458 | $ | 14,483 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | (234) | (10) | (394) | (18) | |||||||||||||||||||
Non-GAAP cost of revenue | $ | 8,255 | $ | 8,685 | $ | 17,064 | $ | 14,465 | |||||||||||||||
Non-GAAP gross profit | $ | 25,455 | $ | 20,862 | $ | 51,115 | $ | 36,213 | |||||||||||||||
Non-GAAP gross margin | 76 | % | 71 | % | 75 | % | 71 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Research and development | $ | 15,181 | $ | 7,861 | $ | 27,499 | $ | 14,123 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | (2,073) | (285) | (3,500) | (486) | |||||||||||||||||||
Non-GAAP research and development | $ | 13,108 | $ | 7,576 | $ | 23,999 | $ | 13,637 | |||||||||||||||
Non-GAAP research and development as a % of revenue | 39 | % | 26 | % | 35 | % | 27 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Sales and marketing | $ | 18,931 | $ | 10,832 | $ | 35,350 | $ | 18,708 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | (1,380) | (235) | (2,201) | (318) | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 17,551 | $ | 10,597 | $ | 33,149 | $ | 18,390 | |||||||||||||||
Non-GAAP sales and marketing as a % of revenue | 52 | % | 36 | % | 49 | % | 36 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
General and administrative | $ | 11,065 | $ | 5,128 | $ | 19,584 | $ | 9,182 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | (1,835) | (436) | (2,633) | (632) | |||||||||||||||||||
CEO Performance Award issuance expense | (386) | — | (386) | — | |||||||||||||||||||
Unoccupied lease expense | (798) | — | (798) | — | |||||||||||||||||||
Non-GAAP general and administrative | $ | 8,046 | $ | 4,692 | $ | 15,767 | $ | 8,550 | |||||||||||||||
Non-GAAP general and administrative as a % of revenue | 24 | % | 16 | % | 23 | % | 17 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Loss from operations | $ | (19,956) | $ | (2,969) | $ | (31,713) | $ | (5,818) | |||||||||||||||
Operating margin | (59) | % | (10) | % | (47) | % | (11) | % | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | 5,522 | 966 | 8,728 | 1,454 | |||||||||||||||||||
CEO Performance Award issuance expense | 386 | — | 386 | — | |||||||||||||||||||
Unoccupied leases expense | 798 | — | 798 | — | |||||||||||||||||||
Non-GAAP loss from operations | $ | (13,250) | $ | (2,003) | $ | (21,801) | $ | (4,364) | |||||||||||||||
Non-GAAP operating margin | (39) | % | (7) | % | (32) | % | (9) | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net loss attributable to common stockholders | $ | (20,171) | $ | (3,108) | $ | (32,020) | $ | (6,062) | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | 5,522 | 966 | 8,728 | 1,454 | |||||||||||||||||||
CEO Performance Award issuance expense | 386 | — | 386 | — | |||||||||||||||||||
Unoccupied leases expense | 798 | — | 798 | — | |||||||||||||||||||
Non-GAAP net loss attributable to common stockholders | $ | (13,465) | $ | (2,142) | $ | (22,108) | $ | (4,608) | |||||||||||||||
Non-GAAP net loss per share | $ | (0.23) | $ | (0.16) | $ | (0.38) | $ | (0.34) | |||||||||||||||
Weighted average shares used to compute basic and diluted net loss per share | 58,344 | 13,636 | 58,159 | 13,513 | |||||||||||||||||||
Non-GAAP income attributable to common stockholders as a % of revenue | (40) | % | (7) | % | (32) | % | (9) | % |
Cover |
Aug. 11, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Entity Central Index Key | 0001625641 |
Amendment Flag | false |
Document Period End Date | Aug. 11, 2022 |
Entity Registrant Name | CS Disco, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-40624 |
Entity Tax Identification Number | 46-4254444 |
Entity Address, Address Line One | 111 Congress Avenue |
Entity Address, Address Line Two | Suite 900 |
Entity Address, City or Town | Austin |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 78704 |
City Area Code | 833 |
Local Phone Number | 653-4726 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock, par value $0.005 |
Trading Symbol | LAW |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
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