Welcome to the Q3 2020 investor update from Lawtrades. I hope you're all doing okay and staying healthy. This was a strong quarter for us, especially compared to what we expected at the start.
Our year long focus on identifying what needs to be done and organizing ourselves around the outcomes we have to achieve, finally began to pay off in the third quarter, when we turned our first profitable quarter on a cashflow basis.
This required remaining frugal, creating effective software, and giving our customers the best value in the industry.
Some highlights from a notable quarter:
During the hunters and gatherers days, we all worked for ourselves.
But at some point we accepted the idea that the logical thing is for everybody to work for somebody else.
The industrial revolution made us extremely hierarchical because one person couldn't easily own or build a factory.
But now, thanks to the Internet, we've been given the largest wealth creation tool in human history.
We're finally going back to an age where more and more people can work for themselves.
Those who think long-term, learn passionately, and leverage their knowledge, get rewarded with self-actualization, autonomy, and freedom.
That is ultimately what we're doing here at scale— creating economic freedom by putting the internet economy within every knowledge workers reach.
It's what makes a Lawtrader different from a law firm. Our users are re-birthing a century old industry by leveraging their collective knowledge through code, capital, trust, and accountability.
As our technology continues to develop, a Lawtrader will be able to out-produce a non-lawtrader by a factor of one thousand, maybe even more.
I want to live in a world where you can wake up, pick a project to work on, deliver it through VR, and get paid in crypto. Then, set yourself to "vacation mode" and go off on an island to rest and reassess your next move. The 9 to 5 becomes a relic of the past.
To paraphrase Nassim Taleb, success is not being on top of a hierarchy. Success is standing outside of all hierarchies.
The law firm of one.
Our customers come to us because their legal infrastructure has failed them.
We combine great software with skilled knowledge workers that become an essential part of that institutions operations.
Companies struggle to keep up with high volumes of legal contracts, which hold back the business from growing or launching new products quickly enough. A lack of real-time data and constrained resources result in lost revenue, deal delays, and increased exposure to risk.
The Lawtrades platform fixes this by creating a central operating system for all their legal work.
We provide a scaleable, tech-enabled workforce that conducts contract negotiation, execution, and analysis. We then layer tools that enable our customers to transform massive amounts of work data into knowledge that impact how they make business decisions.
Our data is not represented in cells on a spreadsheet or csv exports, but as goals, events, relationships, expenditures, productivity, and insights.
Our platform is used by customers across 22 industries including some of the world's most durable and important companies including in the autonomous transportation, financial services, cybersecurity, and healthcare sectors.
We have built two principal software systems that provide the critical legal infrastructure needed to integrate our customers' operations.
Lawtrades Source ("Source") -- The most engaged community of legal professionals segmented by propriety skills datasets to recommend the most relevant person you should work with. This core product is building a better LinkedIn for lawyers and other knowledge workers.
LawtradesOS ("lawOS") — companies routinely struggle to manage contractors let alone make sense of their investment and performance during large projects. lawOS fixes this problem. The product transforms the ways companies work (especially remotely) by creating a central operating system that visualizes progress and keeps work on track.
While they vary in specific functionality, they align in approach.
Next quarter, we will open up lawOS as a platform and allow our customers to invite new users like their BigLaw firm, non-Lawtrades contractors, and other legal tech vendors to take advantage our automations and collaborate effectively in our platform.
Like a utility company, we will lay the legal pipelines inside an organization that will endure for the next century.
We'll be piloting it with a few customers next quarter and continue to increase our reach within existing customers through new users, workflows, and use cases. This will allow us to rapidly scale within a company and produce a new recurring software revenue to our business.
I'm incredibly proud of everyone at Lawtrades for their tireless efforts to create a world-class customer experience while simultaneously handling our new growth. We will continue to deliver a higher quality product, lower cost, and a faster path to scale and profitability than another other legal company.
Thank you all for your continued support.
Founder and Chief Executive Officer