CS Disco (LAW) Canaccord Genuity's 46th Annual Growth Conference summary

Business overview and strategic changes

• Focused on legal software for litigators, transitioning eDiscovery from manual to electronic processes.

• Leadership overhaul brought in new executives and shifted strategy to target large law firms and litigious corporations.

• Refined go-to-market approach to expand wallet share within existing customers, emphasizing larger and more strategic matters.

• Achieved six consecutive quarters of accelerating growth, reaching 13% last quarter, up from 3%.

• Launched unified litigation solution as the next growth phase, aiming to cover the full litigation lifecycle.

Product innovation and AI integration

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

• Embedded generative AI capabilities, notably Auto Review, to automate document review, reducing months of work to 48 hours.

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

• Auto Review adoption accelerated in Q2, with increasing customer comfort and repeat usage.

• Industry acceptance of Gen AI review strengthened 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.

• Unique position due to deep expertise in litigation, high security, and privileged requirements.

• Exclusive access to primary law data through vLex and Fastcase partnerships, enabling superior AI model training.

• Unified litigation solution aims to manage the entire litigation lifecycle, creating a strong competitive moat.