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David Eckstein
@davidneckstein
CFO @WeAreLegora. Formerly @TrustVanta, @MenloSecurity @OpenDNS and @BoxHQ. Married to my best friend, @ellenjdasilva.
307 Following    2.5K Followers
You may have heard that Legora has surpassed $200M in ARR at positive gross margins. Here is the other half of the story: what happens after customers are on the platform. Usage has to map to value, and efficiency gains must show up for customers. Most credit consumption on @WeAreLegora comes from two areas: LLM usage and document processing. In August, we significantly improved our Agent harness, LLM routing, and orchestration. Credits tied to LLM usage on Agent dropped by roughly 25%, with response quality improving. In September, we rebuilt how Legora ingests and processes documents. The work now uses ~25% fewer credits while maintaining quality. Those two changes have reduced credit consumption for the same work by more than 20% since August. Consumption-based customers can now do the same work for fewer credits. Next, we are working on additional harness and routing improvements, as well as more efficient document processing. As we find efficiency gains, our goal is to keep passing them back to consumption-based customers. Legora is building a long-term company to support legal teams for decades to come. Our strong financial health makes that all possible. That includes a pricing model that gives back to our customers.
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Legora has been putting up some W’s with in-house counsel recently.
New product alert - Legal Research! One of the biggest opportunities we hear from clients is that they shouldn't have to choose between the best data and the best technology. So we're building both into one platform. @WeAreLegora's legal research will combine comprehensive data with AI-native navigation. We're building the world's most comprehensive legal dataset, mapped into a full ontology of how the law actually relates, including an AI-native citator that tracks what's still good law. Not a database with a search bar. A system that understands the structure underneath it. We're building this for every country, not just one. Legal research has always been treated as a local problem. It isn't, and the future of this product reflects that. Live in limited beta in the US now. This is just the beginning...
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We are putting a new foundation under legal research in @WeareLegora. Comprehensive data, a full ontology of law, and an AI-native citator. Almost every legal question starts in the same place. What does the law say, and does it still hold. That is also where AI has been least worth trusting, and I think it is the hardest problem in legal AI. Two things have to be true: You have to have the law, and you have to know your way around it. Getting the data is a grind, and a different grind in every country. We partner with publishers where we can. Where nobody will partner, we go and get it ourselves. Manual requests, physical scanning, whatever that jurisdiction takes. We are working through over 100 countries and every type of source. Then the harder half. No agent can reason across hundreds of millions of documents. Something has to choose the sources before the reasoning starts. So we are building an ontology of the law and an AI native citator, compressing corpora of thousands to hundreds of millions of documents into structured data that an agent actually can use to provide reliable output. The publishers did this by hand. 150 years, thousands of attorney editors, every opinion read by a person. We have hired the best of those editors. They set the standard and they call the close ones, but AI does the muscle work. Reading 60 million pages of case law is no longer too expensive to attempt. The ontology is in limited beta now. Generally available in Q4. Full story:
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How did I get here? I've never thought about myself as a high flyer, but I have always been fascinated to study how business leaders got to where they are today. I loved sharing my story with @vidags10 ! Tune in for my hot takes (I'm pro consumer AI), my misses and why the person you choose to marry is the most important business decision you'll ever make. Give it a listen! 👇
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Data we are seeing at Legora is that as law firms and legal teams adopt Legora, they become far more efficient and decide to expand their teams to pursue new business opportunities and functions. A great reminder that the world is not zero-sum.
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Every journalist asks me a version of the same question. Will AI mean fewer lawyers? Our customers are hiring more of them. Put complexity of the task on one axis and volume on the other. Low-complexity, high-volume work moves to agents, and that pushes the pyramid up. More of the hard work gets done, because someone finally has the capacity to do it. Then there is demand. When something gets faster and better, the world asks for more of it. Jevons noticed it in 1865. Better steam engines made Britain burn far more coal. That was coal, not law, but the mechanism is the same. More M&A, more disputes, more regulatory work, more companies being started. The pie is growing. An independent study interviewed 30 firms across the AmLaw 200, Magic Circle and top international firms. 42% said Legora has helped them win new work, directly or indirectly. 45% said the same about expanding relationships with clients they already had. 39% have taken on matters that would previously have needed more people, more time, or a no. One firm in that study went through a corporate client's entire technology supply chain, every contract, to work out what they were paying and where. A human team would have needed weeks and the cost would have killed the project before it started. With Legora it took four to five days. Their own summary: it was work that we would not have done in the past. The work was not economical before, so nobody did it and nobody billed for it. Now it gets done, and someone has to do it.
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Five numbers tell you whether an AI business is a real business. Gross retention.@WeAreLegora is 95%. Customers who bought last year are still here this year. If this one is broken, nothing downstream matters. NRR. Ours is 300%+. Gross retention is the floor. NRR is how much taller customers build on top of it. We don't sell shelf-ware.  DAU/MAU. Ours is north of 50%, and the average active user spends 17 hours a month in the product. A rollout tells you a firm has signed. This indicates the work actually matters, and it moves here before it appears in retention or NRR. Win-rates. Our August pilot closed-won-win rate was 78%. Winning roughly 4 out of 5 competitive pilots is downstream from offering a superior product. Gross margin. The one that matters most. Ours is positive and improving every quarter. Our customers want Legora to be a long-term partner, and this is what makes that possible. There's a shorter route: Price below what it costs to serve, book the logo, and hop on a never-ending fundraise treadmill to pay for it. The top line goes up, everyone claps, and every new customer costs more than they pay. Scaling a negative margin only exaggerates the problem. The whole point of scale is that the margin improves as you go up. Ours does. That's the only version of this business worth building.
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The momentum continues at @WeAreLegora ...we beat our original Q3 '26 plan a full month early. July was the strongest quarter-opening month in Legora's history, and August was even larger. Total net new ARR grew 36% MoM. But the story of the month is in-house teams. ARR from in-house is up 15x+ YoY, average ARR per in-house customer is up 2.5x+ YoY, and in-house teams are now almost half of our total new customers. Most importantly, you earn ARR by building the best product on the market. Our usage climbs every month: 16+ hours per monthly active user. In September, we expect to add more ARR than in all of Q1 '26 combined, which would make Q3 the best quarter in our history and capture yet another ARR milestone. LFG!
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Six months ago I asked a lawyer friend: How much do you use Legora today? They responded: maybe for 10% of tasks. It is helpful. I asked them again last week, the same question: They responded: I just check the output Legora does. If it were taken away, I would be SO SO upset. It has gone from doing 10% to doing 80%. Law will follow the same path coding has done.
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Thank you, @Benioff and @salesforce, for having me on your Q2 earnings call. Enjoyed talking about how @WeAreLegora and @salesforce grow together. #headlessagents# #legalai#
.@DavidNEckstein, CFO of @WeAreLegora, on bringing Salesforce into Claude across sales and development
As we scale @WeAreLegora, one question we’re thinking about is how business systems should work in an AI-first world. For us, that includes bringing Salesforce data into the AI tools our teams already use, so the technology fits more naturally into how people work. Looking forward to joining @Shibani Ahuja on @Salesforce’s Q2 FY27 earnings pre-show today to share more about how we’re approaching this as we grow.
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Legora vs. Harvey feels like the new Ramp vs. Brex. Sometimes being the 2nd entrant into a new, massive market is the best position.
Across every dimension, July was the strongest quarter-opening month in @WeAreLegora's history. Net new ARR was 90% higher than April ‘26, our prior quarter-opening record. ARR grew more than 10x year-on-year. This reflects something specific: more in-house legal teams are choosing Legora, not just law firms. But as always, what I care about most is customer love. Our MAUs now use Legora for 16 hours per month. Our gross retention is 95%+, against millions of dollars in upsold ARR. Retention at this level, while expansion is accelerating, is the hard thing to get right. It's the number that tells you customers aren't just buying Legora, they're building on it. We're not slowing down from here. LFG @MaxJunestrand
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Partnered with @firstmarkcap on their Guilds Summit. Some takeaways👇🏼 @anjsud CEO @tubi x @amishjani 1. The best CEOs aren’t the experts on everything. They hire experts, give them ownership, expect it back and get out of the way. 2. “Never waste a good crisis”, that’s often when the biggest leaps happen. @davidneckstein CFO @wearelegora x @abimbhet 1. The best fundraising rounds optimize for value add, not valuation (yes their investors are actually getting them customers). 2. AI is pushing CFOs out of spreadsheet management and deeper into driving revenue growth. Li Fan CTO @circle x @amankabeer11 1. The opportunity is bigger than agentic payments, it’s the agentic economy (there’s an entire stack that involves things besides payments). 2. Winning won’t come from forcing every workflow to go headless but from finding where agents create enough value to earn the right to transact. (It’s still early and no one has cracked it yet). Thank you @mrbenwinn for hosting and leading a phenomenal production. @airwallex is proud to facilitate bringing the best forward to share how they build.
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To close the inaugural Vertical AI Summit, I moderated a panel on the economics of AI growth w/ @vxanand, Co-Founder of @Clay, + @davidneckstein, CFO of @WeAreLegora Both companies went from $1M to $100M in run rate in < 2 yrs. They also agree on almost nothing, and told me so right before we walked on stage, which made it the most fun I've had moderating in a while! My main takeaways: - Control the controllables - you can't move the lab-level constraints you sit downstream of, so spend your energy on the levers you own. - Reprice around value - pricing on tokens makes you a reseller of inference that gets commoditized as models get cheaper, so charge for the value you create. - Finance is now proactive and a much more strategic function in the org. - We are in an arms race, act accordingly. If you want to read more about what we discussed, link below
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We just wrapped a massive Q2 at @WeAreLegora . We blew past our ARR goal and posted north of 50% QoQ growth for the second straight quarter this year. One rep closed more than $4M in new business. Eight reps closed more than $2M each. Average quota attainment across the team is the highest I've seen in my career. And we crossed 1,500 customers. But closing new business is the easy part to celebrate. What matters more is whether customers get real value and stay. So the number I'm proudest of: since we rolled out the Legora agentic OS a month ago, every usage metric has climbed. DAU/MAU, one of our core engagement measures, is 13 points higher for customers using the agent and well above 50% overall. The aOS is changing how legal work gets done, and the data backs it up. When retention and growth move together like this, you lean in. We've raised our full-year top-line forecast by nearly 30%. Buckling up for an epic second half. Thank you to the team and to our customers for betting on us.
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Nothing funnier than attending a Scarsdale wedding last night and a group of my parents’ friends huddled around the TV pointing at Jalen Brunson saying “I recognize him from temple!!!!”
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May was a big month for @WeAreLegora . Legal professionals are the ultimate proof of the product. That's the only adoption curve that matters. When lawyers are logging 40+ hours a month and churning at under 1%, that's not a sales story. That's a product story.
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I have one simple rule when I invest in a company. Post investment, I work for the founder and the company. Whatever they need, I work for them. When @MaxJunestrand called and said, come open the London office with @KanishkaNarayan. Done deal baby! 👇
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I spend a lot of time thinking about what investor composition says about a company's trajectory. @Atlassian and NVentures – @nvidia 's VC arm – joins @WeAreLegora Series D extension alongside a group of new investors, bringing the total round to $600M.
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