Cs Disco, Inc.

Technology
Computer Software: Prepackaged Software
www.csdisco.com

Moat Score

Market Cap $358.65M
PE -10
Debt $NaN
Cash $76.55M
EV $NaN
FCF -$11.16M

Earnings

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Sales & Net Margins

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Earnings	-$36.41M
EBIT	-$35.82M
ROE	-22%
ROA	-18%
FCF	-$11.16M
Equity	$167.26M
Growth Stability	1
PE	-9.85
PB	2.14
P/FCF	-32.15
P/S	2.5
Price/Cash	0.21
Net Margins	-28%
Gross Margins	75%
Op. Margins	-25%
Sales Growth YoY	4%
Sales Growth QoQ	1%
Sales CAGR	11%
Equity CAGR	-13%
Earnings Growth YoY	789%

Earnings Growth QoQ	-15%
Sales CAGR 5Y	11%
Equity CAGR 5Y	-13%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
Equity CAGR 3Y	-15%
Market Cap	$358.65M
Revenue	$143.58M
Assets	$194.38M
Cash	$76.55M
Shares Outstanding	59.68M
Moat Score	3%
Working Capital	136.12M
Current Ratio	7.49
Gross Profit	$107.01M
Shares Growth 3y	4%
Equity Growth QoQ	-2%
Equity Growth YoY	-17%

Assets & ROA

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Stockholders Equity & ROE

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CS Disco Inc provides a cloud-native, artificial intelligence-powered legal solution that simplifies discovery, legal document review, and case management for enterprises, law firms, legal services providers, and governments. Its revenue-generating activities directly relate to the sale and support of legal solutions. It has two primary types of contractual arrangements: usage-based and subscription solutions. The usage-based revenue is derived from contracts under which customers are billed monthly based on their usage. Subscription revenue is derived from contracts where customers are contractually committed to a minimum data volume over a period of time.

SEC Filings

Direct access to Cs Disco, Inc. (LAW) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Cs Disco, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Cs Disco, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

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Cs Disco, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Cs Disco, Inc..

Years

Calculation mode

= -$112M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$11M	-$11M	-$11M	-$11M	-$11M	-$11M	-$11M	-$11M	-$11M	-$11M	-$11M	-$112M
DCF		-$10M	-$9.2M	-$8.4M	-$7.6M	-$6.9M	-$6.3M	-$5.7M	-$5.2M	-$4.7M	-$4.3M	-$43M
Value	-$112M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-34%	-21%	-52%	-31%	-28%
ROA	-	-8%	-28%	-18%	-18%
ROE	-	-9%	-32%	-21%	-22%

Bad Net Margins (-28.35%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-
Debt over Equity	-	-	-	-	-
Growth Stability	-	-	-	-	1

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	67%	18%	2%	11%
Earnings YoY growth	-	6%	190%	-40%	-
Equity YoY growth	-	-383%	-17%	-10%	-13%
FCF YoY growth	-	1%	104%	-40%	-