CS Disco, Inc. Canaccord Genuity's 46th Annual Growth Conference

Yeah, you bet, DJ. Hello, everyone. Eric Friedrichsen, CEO of Disco. Disco is in the legal software industry. We have been in business since 2013, went public in 2021, really serving a specific sub-segment of lawyers called litigators and helping them historically with their problems related to ediscovery. When you think of I do not know if any of you have seen the Julia Roberts movie, "Erin Brockovich," where she is digging through boxes and boxes of paper looking for evidence. We do that, but we do it electronically, and that business has historically, over many, many decades, been a human-based business, and over our history, we converted that into more of an electronic-based business. The software was built to be extremely friendly for lawyers and administrators that leverage the system, which was a game changer for the industry. Previous competitors were powerful but extremely difficult to use.

That was how the business got started. The business grew very, very quickly on the back of selling to both law firms and corporations, and went public in 2021, and then the business started to slow down pretty significantly. I think we were founder led by a brilliant founder who was a litigator and understood the business extremely well or understood law extremely well and what litigators needed. But we were trying to do too many things all at the same time. I came in in April of 2024 as the new CEO. Had an extensive background in growing and turning around companies. My last company was Emburse, which we doubled in size to almost $300 million in revenue and very profitable when I left that business. I was excited to come into Disco.

The first step we did was we brought in some great new talent, AKA Aaron is a great example of it, but we brought in a new chief product officer, new chief financial officer, a variety of talent across the executive team and the VP team. We set our strategy and focus to understand our ideal customer profile, which is really large law firms and highly litigious corporations. We changed our go-to market to be an integrated go-to market that would allow us to really work on expanding our wallet share within these existing customers. We had many of these customers that might have spent $100,000 or $1 million per year with us, but we only had 10% or 15% of their wallet at the time. We put a lot of effort in growing those customers and in getting larger and more strategic matters onto our platform.

It's been great. We've had now six quarters in a row of accelerating growth. We illustrated 13% growth last quarter after when I joined. We were at 3% growth, so we're on the right trajectory. We're hitting on all cylinders, and a lot of it is based on pulling the levers in our go-to-market strategy. We see an optimistic future. I've told the street many times, I believe this business could be a 20% plus grower based on just the core strategy that we're executed upon right now. Beyond that, we just also introduced our unified litigation solution, which is the entire next phase of Disco, which we think has a ton of upside, a lot of value for our customers and for Disco as well.

Yeah, I know. They all fold together.

Yeah. I think that the real story of Q2, honestly, was strong execution on the back of focus. The fact that we put in a new comp plan, we allocated accounts the right way. There is a number of different levers that we pulled over the last several quarters that are all starting to come together, and that was in aggregate. It was not so much that we beat our guidance. It was how we beat our guidance that allows me to have confidence that this can be repeatable. That was the main thing. There were also some real sweet spots on a couple of new levers that we pulled. So at the beginning of the year, we introduced DISCO Platform Pricing, which was an entirely new approach to pricing, which has come out of the gates extremely strong.

We hit our goals, for DISCO Platform Pricing rollout within six months for the full year.

Yeah obviously we are looking now to go way past that, but really good strength there.

And then in our Auto Review product, which is a generative AI product that allows all of that work looking through papers to be done with Gen AI. And that really had a great quarter. So those were some of the big highlights.