CS Disco (LAW) investor relations material

Business overview and strategic changes

• Focus shifted to large law firms and highly litigious corporations, refining the ideal customer profile and go-to-market strategy.

• New executive talent brought in, including Chief Product Officer and Chief Financial Officer, to drive transformation.

• Accelerating growth for six consecutive quarters, reaching 13% last quarter, up from 3% at CEO's arrival.

• Emphasis on expanding wallet share within existing customers, targeting larger and more strategic matters.

• Introduction of unified litigation solution as the next phase, aiming to cover the entire litigation lifecycle.

Product innovation and AI integration

• Rolled out DISCO Platform Pricing, aligning pricing with industry standards and simplifying customer adoption.

• Embedded generative AI capabilities, notably Auto Review, which drastically reduces document review time from months to 48 hours.

• AI tools enable strategic case analysis, risk assessment, and faster, more accurate document tagging.

• Auto Review adoption increased, with repeat buyers and ongoing investment to make it self-service.

• Industry acceptance of Gen AI review reinforced by recent judicial rulings, boosting momentum.

Competitive landscape and differentiation

• Main competitors are Relativity, its resellers, and Everlaw, with Disco focusing on litigation rather than transactional law.

• Deep expertise in litigation, high security, scalability, and privileged access requirements set Disco apart.

• Unique access to primary law data through exclusive licensing agreements, enabling superior AI model training.

• Unified litigation solution aims to address 100% of the litigation lifecycle, leveraging both facts and case law.

• Competitors in legal AI, like Harvey and Legora, focus on transactional law and lack similar data access.