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: February 23, 2023 | By: | /s/ Michael Lafair | ||||||
Name: | Michael Lafair | |||||||
Title: | Executive Vice President, Chief Financial Officer |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 203,244 | $ | 255,477 | |||||||
Accounts receivable, net | 22,720 | 20,740 | |||||||||
Other current assets | 5,576 | 4,634 | |||||||||
Total current assets | 231,540 | 280,851 | |||||||||
Property and equipment, net | 7,507 | 5,335 | |||||||||
Operating lease right-of-use assets | 9,824 | 864 | |||||||||
Intangible assets, net | 962 | — | |||||||||
Goodwill | 5,898 | — | |||||||||
Other assets | 591 | 351 | |||||||||
Total assets | $ | 256,322 | $ | 287,401 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 8,485 | $ | 4,686 | |||||||
Accrued expenses | 4,705 | 2,844 | |||||||||
Accrued salary and benefits | 3,536 | 7,955 | |||||||||
Deferred revenue | 4,100 | 2,175 | |||||||||
Operating leases | 1,902 | 890 | |||||||||
Finance lease | 39 | 99 | |||||||||
Total current liabilities | 22,767 | 18,649 | |||||||||
Operating lease, non-current | 8,770 | — | |||||||||
Finance lease, non-current | 199 | — | |||||||||
Other liabilities | 950 | 75 | |||||||||
Total liabilities | 32,686 | 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 December 31, 2022 and 2021 | — | — | |||||||||
Common stock $0.005 par value, 1,000,000 shares authorized as of December 31, 2022 and 2021; 59,190 and 58,010 shares issued and outstanding as of December 31, 2022 and 2021, respectively | 296 | 291 | |||||||||
Additional paid-in capital | 421,569 | 395,850 | |||||||||
Accumulated deficit | (198,229) | (127,464) | |||||||||
Total stockholders’ equity | 223,636 | 268,677 | |||||||||
Total liabilities and stockholders’ equity | $ | 256,322 | $ | 287,401 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | $ | 32,537 | $ | 33,810 | $ | 135,190 | $ | 114,342 | |||||||||||||||
Cost of revenue | 8,071 | 8,786 | 34,163 | 31,098 | |||||||||||||||||||
Gross profit | 24,466 | 25,024 | 101,027 | 83,244 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 16,065 | 10,639 | 59,258 | 34,414 | |||||||||||||||||||
Sales and marketing | 18,178 | 15,169 | 72,839 | 47,045 | |||||||||||||||||||
General and administrative | 10,248 | 8,163 | 40,738 | 25,614 | |||||||||||||||||||
Total operating expenses | 44,491 | 33,971 | 172,835 | 107,073 | |||||||||||||||||||
Loss from operations | (20,025) | (8,947) | (71,808) | (23,829) | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest and other income | 1,279 | 32 | 1,702 | 106 | |||||||||||||||||||
Interest and other expense | 134 | (222) | (473) | (540) | |||||||||||||||||||
Loss from operations before income taxes | (18,612) | (9,137) | (70,579) | (24,263) | |||||||||||||||||||
Income tax provision | (75) | 29 | (186) | (81) | |||||||||||||||||||
Net loss | $ | (18,687) | $ | (9,108) | $ | (70,765) | $ | (24,344) | |||||||||||||||
Less accretion of redeemable convertible preferred stock | — | — | — | (56) | |||||||||||||||||||
Net loss attributable to common stockholders | $ | (18,687) | $ | (9,108) | $ | (70,765) | $ | (24,400) | |||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.32) | $ | (0.16) | $ | (1.20) | $ | (0.73) | |||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 59,096 | 57,451 | 58,753 | 33,208 |
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash flow from operating activities: | |||||||||||
Net loss | $ | (70,765) | $ | (24,344) | |||||||
Adjustments to reconcile net loss to cash used in operations: | |||||||||||
Depreciation and amortization | 2,974 | 1,674 | |||||||||
Stock-based compensation | 21,737 | 5,603 | |||||||||
Charge to allowance for credit losses | 1,294 | 833 | |||||||||
Loss (gain) on disposal of long-lived assets | (1) | (1) | |||||||||
Unoccupied lease charges | 1,127 | — | |||||||||
Remeasurement of contingent consideration | 540 | — | |||||||||
Non-cash operating lease costs | 1,452 | 986 | |||||||||
Non-cash interest | — | 240 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (3,274) | (8,662) | |||||||||
Other current assets | (989) | (3,168) | |||||||||
Other long-term assets | (237) | (24) | |||||||||
Accounts payable | 3,186 | 1,091 | |||||||||
Accrued expenses and other | (4,199) | 4,615 | |||||||||
Deferred revenue | 1,621 | 533 | |||||||||
Operating lease liabilities | (614) | (1,018) | |||||||||
Other liabilities | 134 | — | |||||||||
Net cash used in operating activities | (46,014) | (21,642) | |||||||||
Cash flow from investing activities: | |||||||||||
Purchases of property, equipment and capitalized internal-use software development costs | (4,378) | (3,107) | |||||||||
Cash paid for acquisitions | (5,310) | — | |||||||||
Net cash used in investing activities | (9,688) | (3,107) | |||||||||
Cash flow from financing activities: | |||||||||||
Proceeds from public offering, net of underwriting discounts and commissions and other offering costs | (284) | 219,811 | |||||||||
Proceeds from exercise of stock options | 4,059 | 2,288 | |||||||||
Proceeds from exercise of warrants | — | 146 | |||||||||
Repurchase of common stock related to net share settlement | (264) | (476) | |||||||||
Principal payments on finance lease obligations | (42) | (112) | |||||||||
Net cash provided by financing activities | 3,469 | 221,657 | |||||||||
Net increase (decrease) in cash and cash equivalents: | (52,233) | 196,908 | |||||||||
Cash and cash equivalents at beginning of period | 255,477 | 58,569 | |||||||||
Cash and cash equivalents at end of period | $ | 203,244 | $ | 255,477 | |||||||
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Supplemental disclosure: | |||||||||||
Cash paid for interest | $ | — | $ | 105 | |||||||
Cash paid for taxes | $ | 397 | $ | 97 | |||||||
Non-cash investing and financing activities: | |||||||||||
Accretion of preferred stock to redemption value | $ | — | $ | 56 | |||||||
Property and equipment included in accounts payable and accrued liabilities | $ | 240 | $ | — | |||||||
Conversion of preferred stock to common stock upon initial public offering | $ | — | $ | 160,856 | |||||||
Costs related to initial public offering included in accounts payable | $ | — | $ | 284 | |||||||
Acquisition holdback | $ | 800 | $ | — | |||||||
Contingent consideration related to acquisition | $ | 1,133 | $ | — |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net loss | $ | (18,687) | $ | (9,108) | $ | (70,765) | $ | (24,344) | |||||||||||||||
Depreciation and amortization expense | 895 | 420 | 2,974 | 1,674 | |||||||||||||||||||
Income tax provision | 75 | (29) | 186 | 81 | |||||||||||||||||||
Interest and other, net | (1,413) | 190 | (1,229) | 434 | |||||||||||||||||||
Stock-based compensation expense | 7,344 | 3,095 | 21,737 | 5,603 | |||||||||||||||||||
Payroll tax expense on employee stock transactions | 23 | 160 | 520 | 264 | |||||||||||||||||||
CEO Performance Award issuance expense | — | — | 386 | — | |||||||||||||||||||
Unoccupied lease expense | — | — | 1,127 | — | |||||||||||||||||||
Acquisition revaluation expense | 540 | — | 540 | — | |||||||||||||||||||
Adjusted EBITDA | $ | (11,223) | $ | (5,272) | $ | (44,524) | $ | (16,288) | |||||||||||||||
Adjusted EBITDA margin | (34) | % | (16) | % | (33) | % | (14) | % | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cost of revenue | $ | 8,071 | $ | 8,786 | $ | 34,163 | $ | 31,098 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | (270) | (29) | (938) | (57) | |||||||||||||||||||
Non-GAAP cost of revenue | $ | 7,801 | $ | 8,757 | $ | 33,225 | $ | 31,041 | |||||||||||||||
Non-GAAP gross profit | $ | 24,735 | $ | 25,053 | $ | 101,965 | $ | 83,301 | |||||||||||||||
Non-GAAP gross margin | 76 | % | 74 | % | 75 | % | 73 | % | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Research and development | $ | 16,065 | $ | 10,639 | $ | 59,258 | $ | 34,414 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | (2,652) | (1,294) | (8,068) | (2,081) | |||||||||||||||||||
Non-GAAP research and development | $ | 13,413 | $ | 9,345 | $ | 51,190 | $ | 32,333 | |||||||||||||||
Non-GAAP research and development as a % of revenue | 41 | % | 28 | % | 38 | % | 28 | % | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Sales and marketing | $ | 18,178 | $ | 15,169 | $ | 72,839 | $ | 47,045 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | (1,232) | (695) | (4,186) | (1,258) | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 16,946 | $ | 14,474 | $ | 68,653 | $ | 45,787 | |||||||||||||||
Non-GAAP sales and marketing as a % of revenue | 52 | % | 43 | % | 51 | % | 40 | % |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
General and administrative | $ | 10,248 | $ | 8,163 | $ | 40,738 | $ | 25,614 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | (3,190) | (1,077) | (8,545) | (2,207) | |||||||||||||||||||
CEO Performance Award issuance expense | — | — | (386) | — | |||||||||||||||||||
Unoccupied lease expense | — | — | (1,127) | — | |||||||||||||||||||
Acquisition revaluation expense | (540) | — | (540) | — | |||||||||||||||||||
Non-GAAP general and administrative | $ | 6,518 | $ | 7,086 | $ | 30,140 | $ | 23,407 | |||||||||||||||
Non-GAAP general and administrative as a % of revenue | 20 | % | 21 | % | 22 | % | 20 | % |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Loss from operations | $ | (20,025) | $ | (8,947) | $ | (71,808) | $ | (23,829) | |||||||||||||||
Operating margin | (62) | % | (26) | % | (53) | % | (21) | % | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | 7,344 | 3,095 | 21,737 | 5,603 | |||||||||||||||||||
CEO Performance Award issuance expense | — | — | 386 | — | |||||||||||||||||||
Unoccupied lease expense | — | — | 1,127 | — | |||||||||||||||||||
Acquisition revaluation expense | 540 | — | 540 | — | |||||||||||||||||||
Non-GAAP loss from operations | $ | (12,141) | $ | (5,852) | $ | (48,018) | $ | (18,226) | |||||||||||||||
Non-GAAP operating margin | (37) | % | (17) | % | (36) | % | (16) | % |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net loss attributable to common stockholders | $ | (18,687) | $ | (9,108) | $ | (70,765) | $ | (24,400) | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | 7,344 | 3,095 | 21,737 | 5,603 | |||||||||||||||||||
CEO Performance Award issuance expense | — | — | 386 | — | |||||||||||||||||||
Unoccupied lease expense | — | — | 1,127 | — | |||||||||||||||||||
Acquisition revaluation expense | 540 | — | 540 | — | |||||||||||||||||||
Non-GAAP net loss attributable to common stockholders | $ | (10,803) | $ | (6,013) | $ | (46,975) | $ | (18,797) | |||||||||||||||
Non-GAAP net loss per share | $ | (0.18) | $ | (0.10) | $ | (0.80) | $ | (0.57) | |||||||||||||||
Weighted average shares used to compute basic and diluted net loss per share | 59,096 | 57,451 | 58,753 | 33,208 | |||||||||||||||||||
Non-GAAP income attributable to common stockholders as a % of revenue | (33) | % | (18) | % | (35) | % | (16) | % | |||||||||||||||
Cover |
Feb. 23, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Entity Central Index Key | 0001625641 |
Amendment Flag | false |
Document Period End Date | Feb. 23, 2023 |
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 | 78701 |
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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