CS Disco Inc

Previous wording

We generate substantially all of our revenue from our customers’ actual usage of ourproduct offerings. Customers generally do not commit to purchase a specific amount of usage on ourproduct offerings and their usage can fluctuate based on the number and nature of legal matters they have at any particular time. As a result, our revenue and other financial results can fluctuate from period to period given the inherent unpredictability of the timing, duration and scope of legal casework. We also offer our customers the option to enter into subscriptions based on committed minimum usage on an annual or multi-year basis, which represented 11% of our revenue for the three and six months ended June 30, 2024. In addition, we generate revenue from a range of professional services aimed at accelerating the time-to-value for our customers.

Current wording

We generate substantially all of our revenue from our customers’ actual usage of ourproduct offerings. Customers generally do not commit to purchase a specific amount of usage on ourproduct offerings and their usage can fluctuate based on the number and nature of legal matters they have at any particular time. As a result, our revenue and other financial results can fluctuate from period to period given the inherent unpredictability of the timing, duration and scope of legal casework. We also offer our customers the option to enter into subscriptions based on committed minimum usage on an annual or multi-year basis, which represented 11% of our revenue for the three and nine months ended September 30, 2024. In addition, we generate revenue from a range of professional services aimed at accelerating the time-to-value for our customers.

Previous wording

As of June 30, 2024, we had $130.0 million of cash and cash equivalents. We generated revenue of $36.0 million and $34.3 million in the three months ended June 30, 2024 and 2023, respectively, and $71.6 million and $67.4 million in the six months ended June 30, 2024 and 2023, respectively, representing a period-over-period growth of 5% and 6%, respectively. Our net loss was $10.8 million and $14.9 million for the three months ended June 30, 2024 and 2023, respectively, and $21.4 million and $35.3 million for the six months ended June 30, 2024 and 2023, respectively.

Current wording

As of September 30, 2024, we had $76.5 million of cash and cash equivalents and $50.2 million of short-term investments. We generated revenue of $36.3 million and $34.9 million in the three months ended September 30, 2024 and 2023, respectively, and $107.8 million and $102.3 million in the nine months ended September 30, 2024 and 2023, respectively, representing a period-over-period growth of 4% and 5%, respectively. Our net loss was $9.2 million and $1.0 million for the three months ended September 30, 2024 and 2023, respectively, and $30.6 million and $36.3 million for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

We generated Adjusted EBITDA of $(4.7) million and $(7.4) million in the three months ended June 30, 2024 and 2023, respectively, and $(9.9) million $(20.4) million in the six months ended June 30, 2024 and 2023, respectively. See the section titled “—Non-GAAP Financial Measure” for the definition of Adjusted EBITDA, as well as a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with GAAP.

Current wording

We generated Adjusted EBITDA of $(4.5) million in each of the three months ended September 30, 2024 and 2023. We generated adjusted EBITDA of $(14.4) million and $(24.9) million in the nine months ended September 30, 2024 and 2023, respectively. See the section titled “—Non-GAAP Financial Measure” for the definition of Adjusted EBITDA, as well as a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with GAAP.

Previous wording

Our success depends in part on our ability to maintain and advance our innovation and brand. We have a strong history of innovation, demonstrated by our DISCO Hold, DISCO Request, DISCO Ediscovery, DISCO Review and DISCO Case Builder offerings, and have built a research and development process that reliably produces features for these product offerings. We intend to continue combining our deep legal domain expertise and commitment to world-class software engineering to continue delivering features and introducing new product offerings to address more areas of legal work, such as our ediscovery chatbot, Cecilia, which was released in the fourth quarter of 2023 in the U.S., and access to sources of primary law, which we acquired through our Fastcase license and intend to launch in 2025. Our future success is dependent on our ability to successfully develop, market and sell our product offerings to both new and existing customers.

Current wording

Our success depends in part on our ability to maintain and advance our innovation and brand. We have a strong history of innovation, demonstrated by our DISCO Hold, DISCO Request, DISCO Ediscovery, DISCO Review and DISCO Case Builder offerings, and have built a research and development process that reliably produces features for these product offerings. We intend to continue combining our deep legal domain expertise and commitment to world-class software engineering to continue delivering features and introducing new product offerings to address more areas of legal work, such as our ediscovery chatbot, Cecilia, which was released in the fourth quarter of 2023 in the U.S. and in the third quarter of 2024 in Europe, and access to sources of primary law, which we acquired through our Fastcase license and intend to launch in 2025. Our future success is dependent on our ability to successfully develop, market and sell our product offerings to both new and existing customers.

Previous wording

Our large base of customers represents a significant opportunity for further sales expansion. We believe that we will be able to continue expanding customer relationships by increasing customers’ usage of offerings that they already buy from us, selling more of our current offerings to existing customers, and introducing additional offerings to sell to existing customers. Our long-term offerings strategy is aimed at building features and offerings that address more and more types of legal work so that customers can continue to centralize on our platform as the system of record and engagement for the legal function. Our ability to increase sales to existing customers will depend on a number of factors, including our customers’ satisfaction with our product offerings, competition, pricing and overall changes in our customers’ spending levels. Even if our customers expand their usage of our product offerings, we cannot guarantee that they will maintain those usage levels for any meaningful period of time or that they will renew their commitments.

Current wording

Our large base of customers represents a significant opportunity for further sales expansion. We believe that we will be able to continue expanding customer relationships by increasing customers’ usage of offerings that they already buy from us, selling more of our current offerings to existing customers, and introducing additional offerings to sell to existing customers. Our long-term offering strategy is aimed at building features and offerings that address more and more types of legal work so that customers can continue to centralize on our platform as the system of record and engagement for the legal function. Our ability to increase sales to existing customers will depend on a number of factors, including our customers’ satisfaction with our product offerings, competition, pricing and overall changes in our customers’ spending levels. Even if our customers expand their usage of our product offerings, we cannot guarantee that they will maintain those usage levels for any meaningful period of time or that they will renew their commitments.

Previous wording

We believe that our technology, and especially our approach to automation and AI, is applicable to a wider range of legal processes outside of our current core offerings. We intend to leverage our technology to introduce further offerings that increase lawyer productivity across more and more areas of legal work over time. We may expend significant resources in the development of additional offerings. For example, our ediscovery chatbot, Cecilia, which was released in the fourth quarter of 2023 in the U.S., and we intend to offer our customers access to sources of primary law, which we acquired through our Fastcase license and intend to launch in 2025. Our ability to successfully develop, market and sell new offerings will depend on a number of factors, including the availability of capital to invest in innovation, our customers’ satisfaction with such offerings, competition, pricing and overall changes in our customers’ spending levels.

Current wording

We believe that our technology, and especially our approach to automation and AI, is applicable to a wider range of legal processes outside of our current core offerings. We intend to leverage our technology to introduce further offerings that increase lawyer productivity across more and more areas of legal work over time. We may expend significant resources in the development of additional offerings. For example, our ediscovery chatbot, Cecilia, was released in the fourth quarter of 2023 in the U.S. and the third quarter of 2024 in Europe. We also intend to offer our customers access to sources of primary law, which we acquired through our Fastcase license and intend to launch in 2025. Our ability to successfully develop, market and sell new offerings will depend on a number of factors, including the availability of capital to invest in innovation, our customers’ satisfaction with such offerings, competition, pricing and overall changes in our customers’ spending levels.

Previous wording

Our market is global and we believe there is a significant opportunity to expand internationally. In thethree and six months ended June 30, 2024, less than 10% of our revenue was generated by customers outside of the United States. We also expect to continue to expand our global employee headcount in India. International expansion, including our global sales efforts, will add increased complexity and cost to our business.

Current wording

Our market is global and we believe there is a significant opportunity to expand internationally. In the three and nine months ended September 30, 2024, less than 10% of our revenue was generated by customers outside of the United States. We also expect to continue to expand our global employee headcount in India. International expansion, including our global sales efforts, will add increased complexity and cost to our business.

Previous wording

In February 2022, we acquired legal workflow products from Congruity360, LLC, or Congruity, in a purchase that expanded our offerings to provide a modern digital solution for legal hold obligations and legal request compliance. On August 17, 2023, the Company executed a licensing agreement with Fastcase, Inc., whereby the Company received Fastcase’s library of U.S. case law, statutes, regulations and court rules (collectively “primary law”). The Company anticipates integrating primary law into its product offerings to automate drafting of legal documents and research memos and assist lawyers in identifying potential legal claims and defenses from new and historical case law, statutes, regulations and court rulings. We intend to continue to selectively pursue acquisitions and strategic investments that we believe can expand the functionality and value of our product offerings and bring talent to our company. We believe that the combination of our market leadership, deep legal expertise and powerful end-to-end platform provides an advantage in pursuing select acquisitions. We may be required to expend significant resources in connection with the pursuit of acquisitions and investments.

Current wording

In February 2022, we acquired legal workflow products from Congruity360, LLC, or Congruity, in a purchase that expanded our offerings to provide a modern digital solution for legal hold obligations and legal request compliance. In August 2023, the Company executed a licensing agreement with Fastcase, Inc. (“Fastcase”), whereby the Company received Fastcase’s library of U.S. case law, statutes, regulations and court rules (collectively “primary law”). The Company anticipates integrating primary law into its product offerings to automate drafting of legal documents and research memos and assist lawyers in identifying potential legal claims and defenses from new and historical case law, statutes, regulations and court rulings. We intend to continue to selectively pursue acquisitions and strategic investments that we believe can expand the functionality and value of our product offerings and bring talent to our company. We believe that the combination of our market leadership, deep legal expertise and powerful end-to-end platform provides an advantage in pursuing select acquisitions. We may be required to expend significant resources in connection with the pursuit of acquisitions and investments.

Previous wording

In the three months ended June 30, 2024 and 2023, usage-based revenue represented 89% of total revenue, and subscription revenue fees represented 11% of total revenue. In the six months ended June 30, 2024 and 2023, usage-based revenue represented 89% and 88% of total revenue, respectively, and subscription revenue fees represented 11% and 12% of total revenue, respectively.

Current wording

In the three months ended September 30, 2024 and 2023, usage-based revenue represented 89% of total revenue, and subscription revenue fees represented 11% of total revenue. In the nine months ended September 30, 2024 and 2023, usage-based revenue represented 89% and 88% of total revenue, respectively, and subscription revenue fees represented 11% and 12% of total revenue, respectively.

Previous wording

General and administrative expenses consist of personnel-related costs associated with our finance, legal, human resources and administrative personnel, including salaries, benefits, bonuses, stock-based compensation and allocated overhead costs. General and administrative expenses also include external legal, accounting and other professional services fees, software services dedicated for use by our general and administrative functions, insurance and other corporate expenses. In the near term, we expect that our general and administrative expenses will decrease in absolute dollars but may fluctuate as a percentage of total revenue from period to period.

Current wording

General and administrative expenses consist of personnel-related costs associated with our finance, legal, human resources and administrative personnel, including salaries, benefits, bonuses, stock-based compensation and allocated overhead costs. General and administrative expenses also include external legal, accounting and other professional services fees, software services dedicated for use by our general and administrative functions, insurance and other corporate expenses. In the near term, we expect that our general and administrative expenses will remain relatively consistent in absolute dollars but may fluctuate as a percentage of total revenue from period to period.

Previous wording

Total revenue increased by $1.7 million, or 5%, for the three months ended June 30, 2024 compared to the same period in 2023. Revenue related to new customers added since June 30, 2023 contributed $5.0 million, which was offset by a $3.3 million decrease in revenue from customers that existed as of June 30, 2023. The change in revenue from existing customers was driven by decreases in usage of our product offerings by several of our existing customers.

Current wording

Total revenue increased by $1.3 million, or 4%, for the three months ended September 30, 2024 compared to the same period in 2023. Revenue related to new customers added since September 30, 2023 contributed $4.5 million, which was offset by a $3.1 million decrease in revenue from customers that existed as of September 30, 2023. The change in revenue from existing customers was driven by decreases in usage of our product offerings by several of our existing customers.

Previous wording

Revenue generated from our software product offerings increased by $2.3 million, or 8%, for the three months ended June 30, 2024 compared to the same period in 2023 due to increases in usage of our software product offerings. Revenue generated from our services product offerings decreased by $0.5 million, or 7%, for the three months ended June 30, 2024 compared to the same period in 2023. This change was driven by decreases in usage of our services product offerings by several of our existing customers, particularly within managed review.

Current wording

Revenue generated from our software product offerings increased by $1.8 million, or 6%, for the three months ended September 30, 2024 compared to the same period in 2023 due to increases in usage of our software product offerings. Revenue generated from our services product offerings decreased by $0.4 million, or 7%, for the three months ended September 30, 2024 compared to the same period in 2023. This change was driven by decreases in usage of our services product offerings by several of our existing customers, particularly within managed review.

Previous wording

Total cost of revenue increased by $0.8 million, or 5%, for the six months ended June 30, 2024 compared to the same period in 2023. This change was primarily driven by a $0.8 million increase in costs for cloud hosting as a result of increased usage of our software product offerings and a $0.7 million increase in salary and benefits costs. This increase was partially offset by a $0.8 million decrease in outsourced staffing vendor fees.

Current wording

Total cost of revenue increased by $0.8 million, or 9%, for the three months ended September 30, 2024 compared to the same period in 2023. This change was primarily driven by a $0.4 million increase in costs for cloud hosting as a result of increased usage of our software product offerings and a $0.5 million increase in salary and benefits costs.

Previous wording

Sales and marketing expenses decreased by $2.6 million, or 14%, for the three months ended June 30, 2024 compared to the same period in 2023. The change was primarily related to a decrease of $1.7 million in personnel costs, including stock-based compensation and variable compensation, for our sales personnel as a result of decreased headcount. In addition, $0.5 million of the decrease was due to nonrecurring restructuring charges related to our reduction in force in May 2023.

Current wording

Sales and marketing expenses decreased by $1.7 million, or 10%, for the three months ended September 30, 2024 compared to the same period in 2023. The change was primarily related to a decrease of $1.0 million in personnel costs, including stock-based compensation and variable compensation, for our sales personnel as a result of decreased headcount. In addition, $0.7 million of the decrease was due to a decrease in marketing and advertising spend.

Previous wording

Total revenue increased by $4.2 million, or 6%, for the six months ended June 30, 2024 compared to the same period in 2023. Revenue related to new customers added since June 30, 2023 contributed $9.2 million, which was partially offset by a $5.0 million decrease in revenue from customers that existed as of June 30, 2023. The change in revenue from existing customers was driven by decreases in usage of our product offerings by several of our existing customers.

Current wording

Total revenue increased by $5.5 million, or 5%, for the nine months ended September 30, 2024 compared to the same period in 2023. Revenue related to new customers added since September 30, 2023 contributed $11.4 million, which was partially offset by a $5.9 million decrease in revenue from customers that existed as of September 30, 2023. The change in revenue from existing customers was driven by decreases in usage of our product offerings by several of our existing customers.

Previous wording

Revenue generated from our software product offerings increased by $4.6 million, or 8%, for the six months ended June 30, 2024 compared to the same period in 2023 due to increases in usage of our software product offerings. Revenue generated from our services product offerings decreased by $0.4 million, or 3%, for the six months ended June 30, 2024 compared to the same period in 2023. This change was driven by decreases in usage of our services product offerings by several of our existing customers, particularly within managed review.

Current wording

Revenue generated from our software product offerings increased by $6.4 million, or 8%, for the nine months ended September 30, 2024 compared to the same period in 2023 due to increases in usage of our software product offerings. Revenue generated from our services product offerings decreased by $0.9 million, or 5%, for the nine months ended September 30, 2024 compared to the same period in 2023. This change was driven by decreases in usage of our services product offerings by several of our existing customers, particularly within managed review.

Previous wording

Total cost of revenue increased by $0.2 million, or 3%, for the three months ended June 30, 2024 compared to the same period in 2023. This change was primarily driven by a $0.3 million increase in costs for cloud hosting as a result of increased usage of our software product offerings and a $0.4 million increase in salary and benefits costs. This increase was partially offset by a $0.6 million decrease in outsourced staffing vendor fees.

Current wording

Total cost of revenue increased by $1.6 million, or 6%, for the nine months ended September 30, 2024 compared to the same period in 2023. This change was primarily driven by a $1.2 million increase in costs for cloud hosting as a result of increased usage of our software product offerings and a $1.2 million increase in salary and benefits costs. This increase was partially offset by a $0.9 million decrease in outsourced staffing vendor fees.

Previous wording

Research and development expenses decreased by $4.1 million, or 14%, for the six months ended June 30, 2024 compared to the same period in 2023. The change was primarily driven by a decrease of $3.9 million in personnel costs, including stock-based compensation, as a result of the expansion of our operations to lower-cost international locations, and a $1.5 million decrease in nonrecurring restructuring charges related to our reductions in force in January and May 2023. These decreases were partially offset by a reduction in capitalized software development of $1.0 million.

Current wording

Research and development expenses decreased by $3.4 million, or 8%, for the nine months ended September 30, 2024 compared to the same period in 2023. The change was primarily driven by a decrease of $3.4 million in personnel costs, including stock-based compensation, as a result of the expansion of our operations to lower-cost international locations, and a $1.5 million decrease in nonrecurring restructuring charges related to our reductions in force in January and May 2023. These decreases were partially offset by a reduction in capitalized software development of $0.9 million.

Previous wording

Sales and marketing expenses decreased by $5.8 million, or 16%, for the six months ended June 30, 2024 compared to the same period in 2023. The change was primarily related to a decrease of $4.3 million in personnel costs, including stock-based compensation and variable compensation, for our sales personnel as a result of decreased headcount. Additionally, travel related costs decreased $0.2 million. In addition, $0.8 million of the decrease was due to nonrecurring restructuring charges related to our reductions in force in January and May 2023.

Current wording

Sales and marketing expenses decreased by $7.5 million, or 14%, for the nine months ended September 30, 2024 compared to the same period in 2023. The change was primarily related to a decrease of $5.3 million in personnel costs, including stock-based compensation and variable compensation, for our sales personnel. In addition, travel related costs decreased $0.2 million and marketing spend decreased $0.5 million. Further, $0.8 million of the decrease was also due to nonrecurring restructuring charges related to our reductions in force in January and May 2023.

Previous wording

General and administrative expenses decreased by $1.3 million, or 6%, for the six months ended June 30, 2024 compared to the same period in 2023. This change was primarily attributable to a $2.4 million decrease in personnel costs, including stock-based compensation, as a result of the expansion of our operations to lower-cost international locations, a $0.2 million decrease in insurance, and a $0.2 million decrease in nonrecurring restructuring charges related to our reductions in force in January and May 2023. These decreases were partially offset by an increase of $1.8 million in professional services costs, of which $0.6 million was due to legal fees related to stockholder litigation.

Current wording

General and administrative expenses increased by $8.2 million, or 35%, for the nine months ended September 30, 2024 compared to the same period in 2023. This change was primarily attributable to a $6.4 million increase in personnel costs, including stock-based compensation, as a result of the $7.7 million reversal of stock-based compensation related to the cancelled CEO Performance Award in 2023. Additionally, professional services increased $2.0 million, of which $0.8 million was due to legal fees related to the stockholder litigation. These increases were partially offset by a $0.2 million decrease in nonrecurring restructuring charges related to our reductions in force in January and May 2023.

Previous wording

We have financed operations primarily through customer payments and net proceeds from sales of equity securities, including our IPO in July 2021. As of June 30, 2024, our principal sources of liquidity were cash and cash equivalents, totaling $130.0 million. Cash equivalents include highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less. We believe our existing cash and cash equivalents will be sufficient to fund anticipated cash requirements for the next 12 months. We believe we will meet our longer-term expected future cash requirements primarily from a combination of cash flow from operating activities and available cash and cash equivalents. We may also engage in equity or debt financings to secure additional funds.

Current wording

We have financed operations primarily through customer payments and net proceeds from sales of equity securities, including our IPO in July 2021. As of September 30, 2024, our principal sources of liquidity were cash and cash equivalents and short-term investments, totaling $76.5 million and $50.2 million, respectively. Cash equivalents include highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less. Short-term investments consist of highly-rated U.S. Treasury securities with maturities of more than three months but less than one year at the date of purchase. We believe our existing cash and cash equivalents and short-term investments will be sufficient to fund anticipated cash requirements for the next 12 months. We believe we will meet our longer-term expected future cash requirements primarily from a combination of cash flow from operating activities and available cash and cash equivalents and short-term investments. We may also engage in equity or debt financings to secure additional funds.

Previous wording

Our principal cash requirements consist of obligations under our operating leases and purchase commitments to our cloud hosting providers and other vendors. There were no changes in our material cash requirements during the six months ended June 30, 2024 from the material cash requirements disclosed in our Annual Report on Form 10-K.

Current wording

Our principal cash requirements consist of obligations under our operating leases and purchase commitments to our cloud hosting providers and other vendors. There were no changes in our material cash requirements during the nine months ended September 30, 2024 from the material cash requirements disclosed in our Annual Report on Form 10-K.

Previous wording

Our future capital requirements will depend on many factors, including our revenue growth rate, usage of our product offerings, billing frequency, the timing and extent of spending to support further sales and marketing and research and development efforts, and the continuing market acceptance of our product offerings. Although fluctuations in general macroeconomic conditions, such as the current inflationary environment, rising interest rates and the Russia-Ukraine and Israel-

Current wording

Our future capital requirements will depend on many factors, including our revenue growth rate, usage of our product offerings, billing frequency, the timing and extent of spending to support further sales and marketing and research and development efforts, and the continuing market acceptance of our product offerings. Although fluctuations in general macroeconomic conditions, such as the current inflationary environment, rising interest rates and the Russia-Ukraine and Israel-Hamas wars, have not materially impacted our liquidity to date, we plan to continue to evaluate aspects of our spending, including capital expenditures, discretionary spending and strategic investments throughout 2024. We have considered the impacts of these factors on our liquidity and capital resources to date, and we do not currently expect them to impact our ability to meet future liquidity needs.

Previous wording

Net cash used in operating activities for the six months ended June 30, 2024 was $8.0 million, a decrease of $13.8 million from net cash used in operating activities of $21.8 million for the six months ended June 30, 2023. The change in cash flow used in operations was primarily due to a decrease in net loss of $13.9 million. Fluctuations in net loss are further explained in the Comparison of the Six Months Ended June 30, 2024 and 2023 section included elsewhere in Management’s Discussion and Analysis. The decrease in cash used in operating activities was also due to a $3.7 million decrease in accounts receivable related to increased collections from customers. These decreases in cash used in operating activities were partially offset by a decrease in stock-based compensation of $2.4 million primarily related to the cancellation of the CEO Performance Award, a decrease in accounts payable and accrued expenses of $0.6 million, and an increase in other current assets of $0.8 million related to various prepaid expenses.

Current wording

Net cash used in operating activities for the nine months ended September 30, 2024 was $10.8 million, a decrease of $17.9 million from net cash used in operating activities of $28.7 million for the nine months ended September 30, 2023. The change in cash flow used in operations was primarily due to a decrease in net loss of $5.7 million. Fluctuations in net loss are further explained in the Comparison of the Nine Months Ended September 30, 2024 and 2023 section included elsewhere in Management’s Discussion and Analysis. The decrease in cash used in operating activities was also due to a $7.1 million decrease in accounts receivable related to increased collections from customers, and an increase in stock-based compensation of $5.7 million primarily related to the cancellation of the CEO Performance Award in 2023. Additionally, there was a decrease in accounts payable and accrued expenses of $0.9 million, and an increase in other current assets of $0.3 million related to various prepaid expenses.

Previous wording

Net cash used in investing activities for the six months ended June 30, 2024 was $1.3 million, a decrease of $2.3 million from net cash used in investing activities of $3.7 million for the six months ended June 30, 2023. The change in cash used in investing activities was primarily related a $1.2 million decrease in cash paid for the acquisition of legal workflow products from Congruity, as well as a $1.2 million decrease in purchases of purchases of property, equipment and capitalized software development costs.

Current wording

Net cash used in investing activities for the nine months ended September 30, 2024 was $52.2 million, an increase of $33.4 million from net cash used in investing activities of $18.8 million for the nine months ended September 30, 2023. The change in cash used in investing activities was primarily related a $49.9 million purchase of short-term investments. This was partially offset by a decrease in the cash paid for the purchase of the primary law intangible asset of $14.0 million. Additionally, there was a $1.2 million decrease in cash paid for the acquisition of legal workflow products from Congruity and a $1.4 million decrease of purchases of property, equipment and capitalized software development costs.

Previous wording

Net cash used in financing activities for the six months ended June 30, 2024 was $20.2 million, a change of $21.4 million from net cash provided by financing activities of $1.2 million for the six months June 30, 2023. The change in cash flows was primarily related to an increase in cash paid for the 2024 share repurchase program of $20.1 million, as well as a $0.5 million increase in cash paid for the acquisition of legal workflow products from Congruity, partially offset by a decrease in proceeds from exercises of stock options of $0.3 million due to a decrease in option exercise activity, and a decrease in net proceeds received from the issuance of common stock under the ESPP of $0.6 million.

Current wording

Net cash used in financing activities for the nine months ended September 30, 2024 was $20.0 million, a change of $21.9 million from net cash provided by financing activities of $1.9 million for the nine months September 30, 2023. The change in cash flows was primarily related to an increase in cash paid for the 2024 share repurchase program of $20.1 million, as well as a $0.5 million increase in cash paid for the acquisition of legal workflow products from Congruity. Additionally, there was a decrease in proceeds from exercises of stock options of $0.5 million due to a decrease in option exercise activity, and a decrease in net proceeds received from the issuance of common stock under the ESPP of $0.9 million.