Company Overview Updated Through Q1 20251 May 12, 2025 © 2025 FiscalNote fiscalnote.com 1. Includes the contribution of Oxford Analytica and Dragonfly Intelligence, two businesses divested on March 31, 2025. 1 Safe Harbor Statement Safe Harbor Statement Certain statements herein may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or FiscalNote's future financial or operating perf ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 FISCALNOTE HOLDINGS, INC. (Exact Name of Registrant as Specified in its Charter) | Delaware | 001-396972 | 88-3772307 | | --- | --- | --- | | (State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer | | incorporation or organization) | | Identi ...

FiscalNote Holdings, Inc. (NOTE) came out with a quarterly loss of $0.12 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -20%. A quarter ago, it was expected that this company would post a loss of $0.10 per share when it actually produced a loss of $0.10, delivering no surprise.Over the last four quarters, the company has surpassed ...

FiscalNote Holdings (NOTE) Q1 2025 Earnings Call May 12, 2025 05:00 PM ET Company Participants Bob Burrows - Investor RelationsJosh Resnik - President & CEOJon Slabaugh - CFO & CIOJesse Sobelson - VP - Equity Research Conference Call Participants Glenn Mattson - AnalystMike Latimore - Managing Director & Senior Research AnalystZach Cummins - Senior Research Analyst Operator Evening. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the FiscalNote ...

FiscalNote Holdings (NOTE) Q1 2025 Earnings Call May 12, 2025 05:00 PM ET Speaker0 Evening. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the FiscalNote Holdings Incorporated First Quarter twenty twenty five Financial Results Conference Call. Thank you. With that, I would now like to turn it over to the company to begin the conference. Speaker1 Good evening. My name is Bob Burrows, Investor Relations for FiscalNote, and we are pleased you all ...

Exhibit 99.1 FiscalNote Reports First Quarter 2025 Financial Results First Quarter 2025 Revenue and Adjusted EBITDA Exceed Forecasts, Reflecting Continued Progress on Path to Sustained Growth and Profitability Continues Business Streamlining; Closes Divestiture of Oxford Analytica and Dragonfly Intelligence and Announces Agreement to Sell TimeBase, Enabling Further Strengthening of Balance Sheet Board of Directors Continues to Review All Strategic Options Available to the Company to Maximize Shareholder Val ...

Financial Performance - Total revenues for the years ended December 31, 2024 and 2023 were $120.3 million and $132.6 million, respectively, reflecting a year-over-year decline primarily due to the divestiture of Board.org in March 2024[22]. - As of December 31, 2024, the company's annual recurring revenue (ARR) was $107.5 million, with an adjusted ARR of $93.3 million after excluding discontinued products and divested businesses[43]. - The net retention revenue (NRR) for subscription customers was approximately 98% for Q4 2024, indicating strong customer retention[46]. - The company incurred net losses of $62.5 million in 2024 and $115.5 million in 2023, highlighting ongoing challenges in achieving profitability[66]. - Approximately 90% of the company's revenues are subscription-based, making high renewal rates critical for financial stability[67]. - A significant portion of revenue is derived from government contracts, which are subject to unpredictable demand and budgetary cycles[106]. Customer Base and Market Presence - The company serves a diverse customer base, including 40 of the Fortune 100, across more than 40 countries, providing stability and growth opportunities[22][36]. - The company serves a diverse customer base, including 40 of the Fortune 100, indicating a strong market presence[42]. - For the years ended December 31, 2024 and 2023, approximately 21% and 19% of revenues were derived from outside the United States, indicating a growing international presence[85]. Product Development and Innovation - The launch of the new core product, PolicyNote, is expected in January 2025, aimed at improving customer experience and retention through enhanced AI features[29]. - Investments in research and development focus on consolidating product portfolios and enhancing data integration capabilities, with a strong emphasis on AI-driven technology[31][33]. - The company is focused on innovation, having launched new products like PolicyNote and plans to continue enhancing its technology platform[55]. - The company leverages AI-driven analytical solutions to provide clients with insights on legal and regulatory developments, enhancing its service offerings[48]. Competition and Market Risks - The company faces competition from traditional information services and emerging startups, necessitating continuous improvement and innovation in its product offerings[50]. - The introduction of competitors' offerings and fluctuations in customer satisfaction could lead to declines in subscriptions, impacting future revenues[69]. - The company faces intense competition for skilled personnel, particularly in AI and data science, which could hinder its ability to innovate and maintain customer relationships[111]. - The company faces risks associated with international operations, including compliance with foreign laws and potential economic instability in those regions[84]. Operational Challenges - The company has implemented a cost reduction plan in 2023 to align operations and reduce future operating expenses[66]. - The sales cycles for the company's products and services are lengthy and unpredictable, requiring significant time and resources without guaranteed revenue[88]. - The company acknowledges the difficulty in accurately estimating the size of its total addressable market, which could limit future growth rates[89]. - The company must navigate challenges in selling to government entities, including competitive bidding processes and compliance with stringent regulations[105]. Intellectual Property and Compliance - The company owns 47 registered trademarks, 14 patents, and has 373 domain names, indicating a strong intellectual property portfolio[53]. - The company may not be able to adequately protect its intellectual property rights, which could harm its business and financial condition[136]. - The company must comply with various lobbying laws, which could result in penalties if not adhered to[108]. - The company is subject to various legal and regulatory risks that could adversely impact its financial condition and operating results[121]. Financial Management and Capital Structure - As of December 31, 2024, the company had $168.2 million in total indebtedness, with $88.6 million under a senior term loan secured by substantially all assets and $79.6 million unsecured[122]. - The company plans to retire $27.1 million of term loans under the senior term loan in connection with the sale of Oxford Analytica and Dragonfly[123]. - The company incurs increased costs due to public company compliance requirements, which may affect profitability[193]. - The company may need to hire additional accounting staff or engage outside consultants, increasing operating expenses[194]. Cybersecurity and Risk Management - The company has a cybersecurity risk management program led by a Vice President with over 15 years of experience in the field[204]. - The company has faced cybersecurity threats, including malware and computer virus attacks, but these have not materially affected its business strategy or financial condition[208]. - The company's Board has delegated responsibility for oversight of the Enterprise Risk Management program and cybersecurity risk to the Audit Committee[207]. - Cybersecurity threats are constantly evolving, and the company may be vulnerable to data breaches that could harm its reputation and financial condition[170].

Core Viewpoint - FiscalNote Holdings, Inc. (NOTE) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Business Outlook - The upgrade in rating for FiscalNote Holdings indicates an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - The Zacks Consensus Estimate for FiscalNote Holdings has increased by 20% over the past three months, reflecting analysts' growing confidence in the company's earnings potential [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - FiscalNote Holdings' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $29.5 million, lower than the prior year period primarily due to the divestiture of Board.org [37] - Annual recurring revenue (ARR) was $107 million in Q4 2024, down from $109 million in 2023 on a pro forma basis [38] - Adjusted EBITDA for 2024 was $9.8 million, a year-over-year improvement of more than $17 million and 1,400 basis points [12][46] - GAAP net loss for Q4 2024 was $13.4 million, significantly lower than the prior year period due to a large non-cash goodwill impairment charge recorded in Q4 2023 [42] - Cash flow from operations improved by more than $30 million in 2024, reaching negative $5.3 million [48] Business Line Data and Key Metrics Changes - Subscription revenue remained flat on a sequential basis, indicating stability in core business operations [37] - Net revenue retention was 98% in Q4 2024, down from 99% in the prior year, reflecting a focus on improving this metric through product innovation [38] Market Data and Key Metrics Changes - The corporate sector saw a significant increase in multiyear contracts, with new logo ARR on multiyear contracts nearly double compared to the previous year [27] - The company anticipates that the launch of the Policy Note platform will positively impact ARR growth in the second half of 2025, contributing to revenue growth in 2026 [38][53] Company Strategy and Development Direction - The company is focused on three pillars: expanding adjusted EBITDA margin, managing debt, and building a foundation for long-term sustainable growth [11] - The divestiture of non-core businesses is part of a strategy to streamline operations and focus on profitable growth areas [16][33] - The launch of the Policy Note platform is expected to enhance customer engagement and retention, driving future revenue growth [24][28] Management Comments on Operating Environment and Future Outlook - Management acknowledged that the typical end-of-year ARR uptick did not materialize at the end of 2024, prompting key management changes to improve execution [21] - The company is monitoring market volatility, particularly in the private sector, which may impact corporate buying decisions [29][53] - Despite potential challenges, management remains confident in the company's long-term growth strategy and the value proposition of its platforms [30][32] Other Important Information - The company reduced its senior debt by more than 60% in the past year, with a commitment to improving its capital structure [16][47] - The forecast for 2025 includes total revenues in the range of $94 million to $100 million and adjusted EBITDA of $10 million to $12 million [54] Q&A Session Summary Question: Adoption and feedback on the new Policy Note platform - Management is not disclosing specific customer adoption numbers but reports high engagement levels and positive feedback on AI features [60][64] Question: Target leverage ratio post-asset sale - The company aims to bring leverage down to a more conventional model, targeting a range of two to three times leverage over the foreseeable future [68] Question: Balance sheet profile after divestments - The anticipated reduction in senior debt will lower cash interest expense to around $2 million per quarter, contributing to long-term financial health [72] Question: Pro forma expectations for upcoming guidance - The Q1 guidance reflects GAAP revenue, with approximately $3 million of revenue from divested businesses not included in subsequent quarters [76]

FiscalNote Holdings, Inc. (NYSE:NOTE) Q4 2024 Earnings Conference Call March 13, 2025 5:00 PM ET Company Participants Bob Burrows - Investor Relations Josh Resnik - President and CEO Jon Slabaugh - Chief Financial Officer and CIO Conference Call Participants Jesse Sobelson - D. Boral Capital Zach Cummings - B. Riley Securities Vijay Devar - Northland Capital Markets Operator Ladies and gentlemen, good afternoon, and thank you for standing by. My name is Abby, and I will be your conference operator today. At ...