CS Disco's Q2 Performance On Public Debut Wins Analyst Confidence

CS Disco Inc LAW reported Q2 revenue of $29.5 million, up 88% year-on-year. It sees Q3 revenue between $25.5 million - $25.9 million.
Analysts praise CS Disco's impressive first earnings on public debut with strong guidance reflecting potential gain from the demand recovery.
Needham analyst Scott Berg raised the PT to $70 from $60, implying a 19.8% upside, and reiterated a Buy.
BofA analyst Koji Ikeda raised the PT to $70 from $60 and affirmed a Buy.
He continues to see Disco being well-positioned to disrupt a large total addressable market, giving it a long-tail to deliver above SaaS industry growth.
Loop Capital analyst Yum Kim raised the PT to $75 from $60, signifying a 28.4% upside, and maintained a Buy. Kim notes that its first reported quarter as a public company was "strong" while its raised guidance reflected accelerating business momentum.
CS Disco saw its core business accelerate, its product attach rate improve, its international expansion increase, its new customer adds remaining strong, and expansion velocity improving.
Citi analyst Tyler Radke raised the PT to $74 from $67, indicating a 26.7% upside, and reiterated a Buy. Radke notes that the outlook reflects "typical conservatism to establish a beat-and-raise cadence as a recent IPO," Radke notes.
He sees CS Disco's "strong" usage trends and new logo momentum persisting into the second half of 2021.
Price Action: LAW shares traded higher by 0.29% at $58.59 on the last check Friday.

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