Financial Data and Key Metrics Changes - In Q1 2025, total revenue was $36,700,000, up 3% year over year, while software revenue was $30,900,000, also up 3% year over year [22][25] - Adjusted EBITDA for Q1 was negative $5,100,000, representing an adjusted EBITDA margin of negative 14%, an improvement from negative 15% in Q1 of the prior year [25] - The company ended Q1 with $118,800,000 in cash and short-term investments and no debt [25] Business Line Data and Key Metrics Changes - Services revenue, which includes DISCO managed review and professional services, was $5,800,000, up 2% year over year [22] - The number of customers contributing more than $100,000 in total revenue over the last twelve months increased by 8% year over year, representing 76% of total revenue [7][22] Market Data and Key Metrics Changes - The company noted growth in revenue from large multi-terabyte matters, indicating a positive trend for future revenue [8][9] - The Cecilia Generative AI suite saw significant growth, with the number of Cecilia Q and A customers increasing five times from Q1 2024 [13][14] Company Strategy and Development Direction - The company launched a new customer value proposition, "With You In Every Case," aimed at enhancing customer engagement and showcasing the integration of software and services [10][11] - Strategic initiatives include enhancing talent, targeting accounts, and aligning incentives to drive revenue growth from larger customers and matters [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to weather potential economic downturns, citing historical trends where litigation increases during such times [20][21] - The company is focused on executing its strategy and believes it is well-positioned for future growth, with an outlook for total revenue in FY 2025 to be between $146,000,000 and $158,000,000 [26][58] Other Important Information - The company reported a gross margin of 75% in Q1, with fluctuations based on customer usage [23] - Operating cash flow in Q1 was negative $10,500,000, compared to negative $7,300,000 in Q1 of the prior year [25] Q&A Session Summary Question: Plans for the next 12-18 months to drive faster growth - Management highlighted the focus on executing the strategy, enhancing operational effectiveness, and aligning resources to target high-value accounts [28][30] Question: Clarification on the new tagline "With You In Every Case" - The tagline emphasizes the integration of services and software, showcasing the company's ability to support customers in both self-service and complex matters [36][40] Question: Expense levers to reduce operating losses during an economic downturn - Management indicated that while there may be headwinds, historical trends suggest litigation could increase, providing opportunities for growth [46][47] Question: How new customers generally come to DISCO - New customer acquisition involves a mix of account-based marketing, events, and thought leadership, with a strong focus on expanding relationships with existing customers [50][53]