Luv Sodha: Got it. Appreciate that. And just a quick follow-up on the investments that you’re planning to make. Scott, I guess which parts of the business are getting this investment? Because obviously, you’re getting some efficiency from the additional investments in India. So where are these investments going and how will you track the efficiency of these investments?
Scott Hill: Yes, so it’s multifaceted. As I said in my remarks, the first investment we made was in our people. Last year was a difficult year for Disco in any number of ways, but it was a year in which, once again, most of our people were simply asked to work harder with little to no reward. As we moved into this year, for the first time in two years, we had a consistent salary increase program. It doesn’t really impact our EBITDA numbers, but we also had an equity program that gave everyone in our Company equity, which I think is the greatest thing in the world, to align our employees interests around what’s best for the Company. So that’s the first and key thing for me, is investing in our people. The second thing is, as I mentioned, we’re rebuilding our client success team.
We’re rebuilding literally from zero, our sales ops team. We’re adding about 20% capacity in the field, going from, I think around 30 reps to just under 40, which will allow us to cover more customers as we segment, particularly around corporate and big law. We’re making investments in R&D because the flat reality is that most of what R&D is doing today is what will allow us to grow tomorrow. It’s not about 2024. It’s about Deposition Summaries. It’s about the enhancement in our eDiscovery platform. It’s about the enhancements in Case builder and in a world where you cut that because it doesn’t line up with the current year revenue, you’re effectively cutting your nose off despite your face. And so it’s investments in R&D that are in future then — And Michael, I know this one is near and dear to his heart.
As you try and scale a business, you can’t depend simply on people working harder. You have to have systems, you have to have processes, you have to have controls, you have to have security. And we must make the investments that are necessary to do that. The good news is the level of spend increase this year versus last year isn’t something you need to go model in as we move forward. I think what we’re doing is recovering from a little bit of an overcorrection last year, getting back to balance this year, and then we’ll be able to support double digit revenue growth with low single digit expense growth and put ourselves on that sustainable path of profitability by doing that. So it really is investments across the Board. But all of those are in line with what I said in the script, which is finding our way towards sustainable double digit revenue growth, modest forward looking investment, and an ability to get our business to profitable and a positive cash flow.
And by the way, the last thing I’ll say on that, the way I look at it is if you take our guidance, that roughly speaking, that’s about 15% of the cash that we had on the balance sheet at the end of the year, which if we left it sitting in the bank, would earn about 4%. I think the return on the investment we’re making will be significantly greater than that.
Luv Sodha: Got it. Thank you so much for the color.
Operator: There are no further questions at this time. I will now turn it back over to CEO Scott Hill for closing remarks.
Scott Hill: Thank you, Brianna. We appreciate everyone joining us today. 2023, as I just said, was a challenging year for Disco. I want to thank our employees for their resilience and our customers for their forbearance. We’re excited about the opportunities we see in 2024. There will be bumps on the road, but our team is aligned and focused. We’re committed to returning to consistent double digit growth, committed to disciplined capital and expense management leading to sustainable profitability. We’re committed to our customers and to each other. And I have to tell you, I’m excited and proud to be a part of it. As we begin the next chapter for Disco, we look forward to updating you on the progress as we move into our next quarters. And I wish you all a nice evening.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
