Shares of CS Disco Inc. (NYSE: LAW), the AI-powered legal technology giant, saw a significant boost of 4.26% in after-hours trading on Friday, reaching a trading price of $9.05, following the announcement of the anticipated release date of its financial results.
What is the expected release date of LAW’s financials?
As announced last week, CS Disco (LAW) will announce its financial results after market close on Thursday, February 23, 2023. CS Disco will host a conference call and webcast on the day of the earnings announcement. That will be to discuss the financial results and highlights of the business for the fourth quarter and fiscal year ended December 31, 2022.
Based on its outlook provided on November 10, 2022, CS Disco expects revenue for fiscal year 2022 to range from $132.0 million to $136.0 million, reiterated the company on January 19, 2023. In addition, the company expects an Adjusted EBITDA loss of between $54.0 million and $50.0 million, below its previous guidance.
Financial and operating results are preliminary and subject to completion of the closing procedures and other procedures of the Company. Those are also subject to the completion of the audit of the Company’s financial statements for the year ended December 31, 2022.
Further, LAW has committed to reducing its workforce by approximately 62 employees, about 9% of the company’s current global workforce. In its Plan, the Company aimed to reduce its cost structure and accelerate its path to profitability through cost-reduction initiatives.
How will LAW implement the plan?
With respect to the Plan, CS Disco (LAW) estimates that it will incur nonrecurring charges between $0.9 million and $1.1 million, primarily relating to employee severance. Approximately half of these charges are expected to be incurred in the first quarter of 2023, according to the estimates calculated by LAW. There are a number of assumptions the company makes regarding the charges it expects to incur, including local law requirements.